Content

 

Preface

About this book

About the third edition

1  Dealing with money

Trading 101

„There’s gold in them hills!”

Ticks, bars, candles

How does a trading system work?

Technical analysis – sense and nonsense

Conclusion

2  Programming in 3 hours

Hour 1: Variables

The pocket calculator

Hour 2: Functions

Passing variables to and from functions

The printf function

Hour 3: Branches and loops

Loops

Conclusion

3  Follow the trend

A basic lowpass filter strategy

Buying and selling

Testing a strategy

Analyzing the trades

The Market Meanness Index

Performance measurement

The Monte Carlo method

6 tricks for trend trading

4  Against the trend

The cycle trading algorithm

Plotting signals

Fractal dimensions

Training

Walk-forward optimization

Self-training

Beware of bias

Rules of thumb

7 tricks for counter trend strategies

5  The money breeder

A forex portfolio system

Portfolio analysis

Money Management

The square root rule

4 portfolio system tricks

6  Candles to kill for

Detecting patterns

Machine learning

Reality check

Bell curve and p-value

5 advices for price action trading

7  In the 5th dimension

Options 101

The seller's advantage

Payoff diagrams

Money management for options

6 tricks for more profit with options

8  The strategy with no risk

The perfect stock portfolio

5 tricks for stock trading systems

9  Anatomy of a Scam Robot

The robot script

How to cheat with statistics

The martingale method

Wealth from a losing system

Conclusion

10  Developing own systems

The development process

Strategies that work

Strategies that don't work

Regular income by trading

Appendix

The Market Meanness Index

Useful books

Script download