Black Book Content

 

Preface. 5

1  Dealing with money. 7

Trading 101. 8

„There’s gold in them hills!”. 12

Ticks, Bars, Candles. 16

How does a trading system work?. 21

Technical analysis – sense and nonsense. 30

Conclusion. 33

2  Programming in 3 hours. 34

Hour 1: Variables. 38

Some sort of pocket calculator 41

Hour 2: Functions. 45

Passing variables to and from functions 49

The printf function. 50

Hour 3: Branches and loops. 52

Loops. 58

Conclusion. 60

3  Follow the trend. 62

A basic trend trading strategy. 63

Buying and selling. 67

Testing a strategy. 69

Analyzing the trades. 73

The Market Meanness Index. 75

Performance measurement 78

The Monte Carlo method. 83

Conclusion. 85

4  Against the trend. 86

The counter trend algorithm... 87

Plotting signals. 90

The dominant cycle. 92

Training. 94

Walk-forward optimization. 100

Beware of bias. 103

Rules of thumb. 105

Conclusion. 107

5  The money breeder 109

A portfolio system... 110

Portfolio analysis. 115

Money Management 117

The square root rule. 124

Conclusion. 125

6  Candles to kill for 127

Detecting patterns. 128

Ready for Price Action. 132

Reality check. 135

The bell curve. 138

Conclusion. 141

7  Anatomy of a scam robot 143

The robot script 144

Distributing the profits. 147

The dreaded martingale method. 150

How to get rich with a losing system... 154

Conclusion. 156

8  Developing own systems. 157

The development process. 158

Strategies that work. 162

Strategies that don't work. 165

Regular income by trading. 170

Appendix. 175

The Market Meanness Index. 175

Tips and tricks. 177

Useful books. 181