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Stock Market Edges: A quantitative guide to developing winning trading strategies
Improve the precision, accuracy and profitability of your stock market trading strategies by leveraging some of the many market edges that successful traders exploit every day.
Read this book to learn how to:
• Improve the accuracy and profitability of your trading strategies by leveraging statistically proven market edges
• The power of using at least one "set-up" and one "entry signal" when developing trading strategies to tilt the odds in your favor
• Conduct statistical tests to analyze whether your trading ideas has an edge over the overall market or not
• Avoid some of the many mistakes that beginner traders do, such as not taking trading costs into account when backtesting your strategies
Foreword by Stan Bokov, Chief Operating Officer at MultiCharts.
Every market edge presented in Stock Market Edges is based on comprehensive statistical analyses and has been tested across seven different markets (S&P 500 ETF, NASDAQ 100 ETF, FTSE 100 Index, German Stock Index (DAX), Hang Seng Index, Nikkei 225, and the S&P 500 Index) over a period of more than 14 years.
The tests range from simple moving averages to various chart patterns and indices, namely:
• Short-term highs and short-term lows
• The Relative Strength Index
• Consecutive up days and consecutive down days
• Extreme up days and extreme down days
• Daily up gaps and daily down gaps
• Average Directional Index
• The Volatility Index
• Key reversal bars
• 50- and 200-day moving averages
• Advancing and declining issues
The final chapter lays out a very consistent and profitable sample trading strategy, built entirely on set-ups outlined in the book to prove that the edges actually provide the trader with an advantage.
Contrary to most other trading books, expected slippage and commissions have been deducted from the test results for the S&P 500 ETF and the NASDAQ 100 ETF.
All market edges and trading strategies presented in Stock Market Edges can easily be implemented and executed in popular trading platforms such as MultiCharts, TradeStation, NinjaTrader and MetaTrader.
Read this book to learn how to:
• Improve the accuracy and profitability of your trading strategies by leveraging statistically proven market edges
• The power of using at least one "set-up" and one "entry signal" when developing trading strategies to tilt the odds in your favor
• Conduct statistical tests to analyze whether your trading ideas has an edge over the overall market or not
• Avoid some of the many mistakes that beginner traders do, such as not taking trading costs into account when backtesting your strategies
Foreword by Stan Bokov, Chief Operating Officer at MultiCharts.
Every market edge presented in Stock Market Edges is based on comprehensive statistical analyses and has been tested across seven different markets (S&P 500 ETF, NASDAQ 100 ETF, FTSE 100 Index, German Stock Index (DAX), Hang Seng Index, Nikkei 225, and the S&P 500 Index) over a period of more than 14 years.
The tests range from simple moving averages to various chart patterns and indices, namely:
• Short-term highs and short-term lows
• The Relative Strength Index
• Consecutive up days and consecutive down days
• Extreme up days and extreme down days
• Daily up gaps and daily down gaps
• Average Directional Index
• The Volatility Index
• Key reversal bars
• 50- and 200-day moving averages
• Advancing and declining issues
The final chapter lays out a very consistent and profitable sample trading strategy, built entirely on set-ups outlined in the book to prove that the edges actually provide the trader with an advantage.
Contrary to most other trading books, expected slippage and commissions have been deducted from the test results for the S&P 500 ETF and the NASDAQ 100 ETF.
All market edges and trading strategies presented in Stock Market Edges can easily be implemented and executed in popular trading platforms such as MultiCharts, TradeStation, NinjaTrader and MetaTrader.
108 pages, Kindle Edition
First published May 16, 2013
32 people are currently reading
399 people want to read
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Displaying 1 - 10 of 10 reviews
December 8, 2014
Very quick and productive read - you can do it in 1-2 hours if you concentrate. Essentially an extended white paper recording his results from backtesting of 10 technical indicators. Pretty solid in terms of methodology; he talks about the difference between a set-up and the actual buy-trigger. The main takeaway is that going long after a short term dip (e.g. four consecutive down days, or big negative candle, etc) is more consistently profitable than going long after the market has rallied (e.g. four consecutive up days). According to Reschke, going long only after the market has fallen short-term would also have kept one out during major declines such as in 2009 - I'd like to have seen more explanation of this; I can sort of see why, but more detail would be good since this is a critical point. Also I assume his results are strong when in context of an overall uptrend, e.g. one of the indicators he tests is ADX, and going long when ADX is high (>25) is more consistently positive. A few of the indicators he considers really test the same thing (e.g. five day low is similar to four consecutive down days is similar to negative RSI). One thing he could have tested was going short the market after it goes up vs going long the market after it goes down - this would have added another dimension.
May 1, 2014
Stock Market Edges: A quantitative guide to developing winning trading strategies presents a solid source of information for traders interested in developing quantitative trading strategies based on statistically proven edges.
Philip Reschke has gone to great lengths to explain the rationale behind the technical indicators that can help you put the odds in your favor. One learns from Stock Market Edges: A quantitative guide to developing winning trading strategies that frequent trading and holding a position for short periods of time results in the highest return while simultaneously minimizing drawdown.
The book goes on to test diverse indicators for average reversal edge figures that enhance your trading short-term results, and there is no doubt that this book can serve as a good asset to both the novices and the experienced players in the field.
In my opinion Philip Reschke offers something that surpasses a theoretical elucidation on stock market trading, and takes a very unconventional approach by detailing the various tests that identify market edges that, when integrated into the daily trading strategies, give amazing results.
I particularly find the nomenclature for edges like ADX, short-term down and short-term up days, creative and interesting. Purchase this book and end your years of waiting for something like this to come along.
As this book indicates, the quantitative approach may yet offer the best results when trading the stock market.
Philip Reschke has gone to great lengths to explain the rationale behind the technical indicators that can help you put the odds in your favor. One learns from Stock Market Edges: A quantitative guide to developing winning trading strategies that frequent trading and holding a position for short periods of time results in the highest return while simultaneously minimizing drawdown.
The book goes on to test diverse indicators for average reversal edge figures that enhance your trading short-term results, and there is no doubt that this book can serve as a good asset to both the novices and the experienced players in the field.
In my opinion Philip Reschke offers something that surpasses a theoretical elucidation on stock market trading, and takes a very unconventional approach by detailing the various tests that identify market edges that, when integrated into the daily trading strategies, give amazing results.
I particularly find the nomenclature for edges like ADX, short-term down and short-term up days, creative and interesting. Purchase this book and end your years of waiting for something like this to come along.
As this book indicates, the quantitative approach may yet offer the best results when trading the stock market.
January 26, 2014
When it comes to books about stock market trading, this is among the best I have read to date.
Stock Market Edges test 10 different patterns for statistical edges that can be exploited. What I like very much is that expected slippage and commissions have been deducted from the test results which gives me confidence that what is presented works. I learned a lot about developing statistically proven strategies by reading this book. Give it a try :-)
Stock Market Edges test 10 different patterns for statistical edges that can be exploited. What I like very much is that expected slippage and commissions have been deducted from the test results which gives me confidence that what is presented works. I learned a lot about developing statistically proven strategies by reading this book. Give it a try :-)
July 28, 2020
Excellent!
The author describes his research on identifying technical analysis edges to the stock market. Many of these are commonly used by technical analysts & investors, but the author tested them and provides the results. He also describes (briefly) how the edges should be used as part of an overall trading system.
The author describes his research on identifying technical analysis edges to the stock market. Many of these are commonly used by technical analysts & investors, but the author tested them and provides the results. He also describes (briefly) how the edges should be used as part of an overall trading system.
March 26, 2020
Skimmed the book and read parts I thought I could benefit from. Very complicated book to comprehend if you do not have an extremely high understanding of the stock market, which I don’t...yet.
March 23, 2017
Gives the knowledge gotten by experience
Its very direct, and well organized, but if the reader gets bored easily its not for you. But logic might help you if you don't want to read this
Its very direct, and well organized, but if the reader gets bored easily its not for you. But logic might help you if you don't want to read this
January 25, 2015
Stock Market Edges is one of the best and most practical stock market trading books that I have come across. The author writes in an easy to understand language and takes the reader through his test of 10 different setups one step at a time. I have learned a lot from this book and highly recommend it to anyone interested in understanding how to gain an edge in short term trading.
July 14, 2019
Valuable insights but not an entertaining read
April 29, 2014
The book is different from other trading books that I have read. It offers a wealth of insight into what works and what does not. The value provided in this book is absolutely eye-opening. I am very satisfied with what I have gotten out of Stock Market Edges. Great book, love it!!!
May 1, 2014
I am new to stock market trading and have learned a lot by reading this book. I highly recommend it to anyone who's new to trading the stock market.
Displaying 1 - 10 of 10 reviews