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
• 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 trading platforms such as MultiCharts, TradeStation, NinjaTrader and MetaTrader.
Customer ReviewsSee All
This is a great book for any serious stock trader
I have for a long time been searching for a book that goes beyond theoretical explanations of how to trade the markets. This book takes a completely different approach by performing various test to identify specific market edges that can be incorporated into existing trading strategies or serve as the foundation for new ones. The tests are performed across various international stock markets and the findings are astonishing. I particular like the edges identified on consecutive up and consecutive down days, ADX, RSI, highs and lows and the sample strategy in the summary chapter. It is interesting how well it performs. I have done some initial incorporation of some of the edges into one of my existing trading strategies and I do see improvements in the average trade and the profitability percentage. I highly recommend that you give this book a chance.
A wealth of information for short-term traders
This may be the most exhaustive in-depth analysis and identification of short-term edges available for traders.
Stock Market Edges contains so much relevant information and it's eye-opening in terms of how the markets behave across multiple international markets. This book should be read over and over again if you want to develop and trade strategies that are based on statistical proven edges that have existed for many years.
For any serious quantitative trader
I am a short-term trader and trading systems developer. During my trading career I have found that the highest rate of return for any stock market trading strategy, while reducing risk and minimizing drawdown, is achieved when trading frequently and holding the position for short periods of time. Stock Market Edges tests a range of different indicators for mean reversal edges which can be successfully exploited in short-term trading. I rely on similar edges with great success in my own trading. If you are looking for well-defined, clearly documented ideas to improve your short-term trading systems, this book should be on your digital shelve. Stock Market Edges will probably prove to be the best one.