Trading Systems and Methods

by Perry J. Kaufman

The ultimate guide to trading systems, fully revised and updated For nearly thirty years, professional and individual traders have turned to Trading Systems and Methods for detailed information on indicators, programs, algorithms, and systems, and now this fully revised Fifth Edition updates coverage for today's markets. The definitive reference on trading systems, the book explains the tools and techniques of successful trading to help traders develop a program that meets their own unique needs.

Presenting an analytical framework for comparing systematic methods and techniques, this new edition offers expanded coverage in nearly all areas, including trends, momentum, arbitrage, integration of fundamental statistics, and risk management. Comprehensive and in-depth, the book describes each technique and how it can be used to a trader's advantage, and shows similarities and variations that may serve as valuable alternatives. The book also walks readers through basic mathematical and statistical concepts of trading system design and methodology, such as how much data to use, how to create an index, risk measurements, and more.

Packed with examples, this thoroughly revised and updated Fifth Edition covers more systems, more methods, and more risk analysis techniques than ever before.

The ultimate guide to trading system design and methods, newly revised Includes expanded coverage of trading techniques, arbitrage, statistical tools, and risk management models Written by acclaimed expert Perry J. Kaufman Features spreadsheets and TradeStation programs for a more extensive and interactive learning experience Provides readers with access to a companion website loaded with supplemental materials Written by a global leader in the trading field, Trading Systems and Methods, Fifth Edition is the essential reference to trading system design and methods updated for a post-crisis trading environment.

Genres: Finance, Nonfiction

1919 pages, Kindle Edition

First published June 1, 1997

Reviews

[Javier Villar · Rating 3 out of 5]

Designed to be consulted, not to be read. Very detailed.

[David · Rating 4 out of 5]

@ 1200 pages Perry Kaufman's book, Trading Systems and Methods rev5, can be overwhelming.

You've got to be motivated to find the chapters of most value and then apply the new knowledge to something.

I'm already trading > $500/day on less than 3-5 lot CME futures and I didn't need basics:

I need DEPTH and BREADTH for creation of new and far more optimized ideas. The vision from a player who's lived 10-1000x larger monthly contract counts. The floor trader and evolved system trader's perspective.

Kaufman is the real deal.<\b> The 20 hrs I could squeeze into a 14 day library loan while holding a 9-5 job, trading 15 hr /wk opened a new picture on 2 subjects and pushed me to purchase the > $100 book on amazon.

There's an amazing amount of breadth in this book. You could never fill depth for the topics without doing the work to trade it.

Good trading to you all.
Never trade what you can't afford to loose.

[Karsten Nielsen · Rating 3 out of 5]

Contains a thorough description of most tools for technical analyses. However, it do not reveal where these different techniques fits the best.

[Tech Nossomy · Rating 3 out of 5]

A vast compendium of methods to trade stocks and futures, but one that tends to buckle under its own weight. Much statistical introduction, with again the near-obligatory assumption that price returns on stocks are normally distributed (they are not), and then continuing with trading systems of which the majority outdated, such as breakout strategies. More concerning are the sections on spectral analysis, seasonal patterns and behavioural patterns, as these have been debunked countless times. Many pages are stuffed with tables with prices, and the programming language of choice is Tradestation, which is proprietary. The appendix contains Fortran code, which not every aspiring trader will have installed or is prepared to use. The sections on the practicalities of trading systems are perhaps the most useful, or at least align with the title of the book the best, and combine many of the strands from the preceding chapters.

[Kurishin · Rating 4 out of 5]

This book is a broad starting point for traders looking to have a technically driven strategy. As such, it does what it sets out to do.
As a fundamentally driven investor, I still had some takeaways but it was hard work getting to them. That's not Kaufman's fault-I'm not his target reader. Still glad I read/skimmed the book.

[SUDHARANI · Rating 4 out of 5]

I am interested in reading this book.. I will give my feedback after finishing my study

[Dave · Rating 4 out of 5]

Yep it's all there. Pretty dense, but then that's the point.

[Julia · Rating 5 out of 5]

There's a lot of material in this book. Best to purchase a copy and keep as reference rather than to try and finish all at one go.