Beyond Technical Analysis: How to Develop and Implement a Winning Trading System, 2nd Edition by Tushar S. Chande

Summary: Great introduction to trading system design. Not too complex, not too dry. Detail enough to be the text book on trading system design if it were used in a college degree course. The examples in the book are easy to understand even if you are not using TradeStation. Some statistics background necessary. Highly recommended as the introductory text for anyone interested in developing mechanical trading models.

Review

I have bought this book many years ago. Whenever people ask me what to read to learn about trading system design, I often lend them this book as the starting point.

The good thing with this book is that it has an overall design principle that the author follows. Obviously I agree with many of his ideas on what makes a trading system robust and functional. By discussing the general principles first and then follow up with examples after examples to illustrate the points, the important concepts are hammered into the readers’ minds.

As the scope of this book is a how-to guide, it suffers the usual guide book problem. That is, it has great introductory materials and the examples are very useful starting points for the readers to embark on their own research, but it stops there. You know the author has a lot more to offer than what is written in the book based on the materials coverd but the publishing house probably prefer to limit the book to the scope it is defined.

Basic knowledge in statistics is necessary as the author assumes the readers understand the graphs and statistics he is using within the book. Programming knowledge is also necessary if you are going to translate the code from Tradestation to some other platforms that you use.

Overall, this book is a very good starting point for anyone who wants to learn something about trading system designs. I recommend this book.

Share