"Development, testing and optimization of trading systems for stock traders" Robert Pardo
No matter how perfect a trading system you create, it is in any case subject to thorough testing.
Books teaching forex trading allow you to learn about the main stages of this process. In modern conditions, testing is as simple as possible, because it is done using a computer, which allows you to do it not only effectively, but also quickly.
The process of creating a trading system itself is quite complex and requires knowledge of a lot of nuances, which can be learned from the presented textbook.
"Developing, Testing and Optimizing Trading Systems for the Stock Trader" written by Robert Pardo, a renowned trading software developer.
It will reveal these very nuances in the best possible way. I would like to immediately note that a person already familiar with stock trading can read it; for a beginner, it will be a little difficult to understand.
1. About optimization - why optimization of strategies is needed, and an overview of the contents of this book.
2. Development of a trading system - the principles on which it should be formed trading strategy, optimization, comparison of test results and real trading.
3. The structure of the trading system - the scheme of operation of the trading system, entry points and signals for closing transactions, risk management as the main component of successful trading.
4. Modeling rules - what data should be used and the main test requirements that need to be taken into account.
5. Search and evaluation – basic search methods, selection of evaluation criteria, test run and analysis of the results.
6. Exercises in testing - how testing is carried out, from the preliminary test to multi-market and multi-period tests.
7. Optimization of a trading system - the basics of optimization, what a forward test and forward analysis are.
8. Efficiency assessment - how to correctly assess the effectiveness of the developed system and what indicators should be taken into account.
9. The many faces of adjustment - what is adjustment in our case, examples of adjusted models.
10. Evaluation of real trading – return on investment, maximum losses, capital Management And much more.
As you can see, the book is quite interesting, but in order to apply the acquired knowledge in practice you will need to spend a lot of effort.
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