Get a flying headstart on trend trading with this comprehensive how-to guide
The Universal Tactics of Successful Trend Trading: Finding Opportunity in Uncertainty delivers powerful and practical advice for the serious trend trader. Using the principles identified in The Universal Principles of Successful Trading, author Brent Penfold shows curious investors how to become a long-term winner with tried-and-true trend trading methodologies.
The book includes in-depth and comprehensive treatments of topics like:
· Why trend trading is so appealing
· Popular and effective trend trading strategies
· How to measure risk
· Common trend trading mistakes and how to avoid them
Investors and readers will also discover the importance of risk, and how to judge outcomes and strategies on a risk-adjusted basis.
Perfect for anyone interested in trading successfully, The Universal Tactics of Successful Trend Trading is a key strategy guide that belongs on the shelf of anyone involved in the buying and selling of financial securities.
By:
Brent Penfold (Sydney Australia)
Imprint: John Wiley & Sons Inc
Country of Publication: United States
Dimensions:
Height: 216mm,
Width: 145mm,
Spine: 31mm
Weight: 658g
ISBN: 9781119734512
ISBN 10: 1119734517
Series: Wiley Trading
Pages: 416
Publication Date: 08 October 2020
Audience:
Professional and scholarly
,
Undergraduate
Format: Hardback
Publisher's Status: Active
Acknowledgements xiii Preface xv Introduction xix Chapter 1 The Paradox 1 Nirvana and Despair 1 It’s Also a Confusing Time 2 How I Can Help You 3 How to Trade Successfully 4 Summary 4 Chapter 2 Key Messages 5 Knowledge 6 Risk 24 Application 36 Execution 54 Summary 63 Chapter 3 The Appeal of Trend Trading 64 It’s a Punch and Judy Show 64 What is Trend Trading? 65 Why are Trends so Important? 67 The Appeal of Trend Trading 67 Summary 119 Chapter 4 Why Do Trends Exist? 120 Confusion Reigns 120 Behavioural Finance 120 Path Dependency 125 And the Winner is? 126 Summary 126 Chapter 5 Why Do So Many Fail? 127 Science Says We Can’t Lose 127 Overview of Trend Trading 127 WhydosoManyFailatit? 130 Variability Kills Indicators 137 Popular Indicators 137 Rsi 139 Strategy Robust Review 139 Rtt 140 Traders Always Change Variable Values 156 Universe of Alternative Equity Curves, Expectancies and ROR 156 Best Set of Variable Values Always Change 158 Know Your Strategy’s Universe of Alternative Equity Curve’s Upper and Lower Bands 160 Stratgey Robustness Review 161 The More Variables, the More Alternatives, the More Risk 161 Variable and Subjective Tools 163 Independent Objective Tools 164 So, What to Do? 165 Summary 165 Chapter 6 Strategies 167 Markets 168 Trading Naked without Technical Analysis 169 Trend-Trading Strategies 177 Momentum Trend Trading 177 Relative Strength Trend Trading 178 Hypothetical Results 180 Relative Momentum Trend Trading 180 Absolute Momentum Trend Trading 195 Retracement Trend Trading 223 Return of Random Trend Trader (2020) 230 Summary 232 Chapter 7 Measuring Risk 234 How to Measure Strategy Performance 234 Risk-Adjusted Return Measurements 235 Standard Deviation—Proxy for Risk 238 The Ulcer Index—a Superior Risk Proxy 245 The Ulcer Performance Index—a Superior Risk-Adjusted Return Measurement 246 Not all Strategies are Created Equal 257 Summary 259 Chapter 8 Moving Forward 260 The Toolkit 260 Portfolio Construction 261 Data 263 Software 263 Attributes of Winning Strategies 264 Strategy Review 267 Strategy Benchmark 279 Strategy Development 300 Summary 302 Chapter 9 Back to the Future 303 Strategy Development 303 Find a Methodology 304 Code the Methodology 311 Review the Methodology 312 Compare the Methodology 312 Adjust the Methodology 314 Equity Curve Stability Review 359 Sensible Trading Destination 360 Drawdown 361 Charles Dow (1851–1902) 364 Back to the Future to Move Forward 364 Embrace Diversification 365 Thank You 365 Appendix A Literature on Trend Trading 368 Cowles and Jones (1933) 368 Levy (1967) 368 Jegadeesh and Titman (1993) 369 Asness, Liew and Stevens (1997) 369 Rouwenhorst and Geert (1998) 369 LeBaron (1999) 370 Moskowitz and Grinblatt (1999) 370 Rouwenhorst (1999) 370 Griffin, Ji and Martin (2003) 370 Hwang and George (2004) 370 Wilcox and Crittenden (2005) 371 Faber (2006) 371 Szakmary, Shen and Sharma (2010) 371 Liu, Liu and Ma (2010) 371 Hurst, Ooi and Pedersen (2010) 372 Moskowitz, Ooi, Hua and Pedersen (2011) 372 Antonacci (2012) 372 Luu and Yu (2012) 372 Hurst, Ooi and Pedersen (2012) 373 Lempérière, Deremble, Seager, Potters and Bouchard (2014) 373 Greyserman and Kaminski (2014) 373 Clare, Seaton, Smith and Thomas (2014) 373 Glabadanidis (2016) 374 Georgopoulou and Wang (2016) 374 Hamill, Rattray and Van Hemert (2016) 374 D’Souza, Srichanachaichok, Wang and Yao (2016) 374 Geczy and Samonov (2017) 375 Hurst, Ooi and Pedersen (2017) 375 Index 377
BRENT PENFOLD is a full-time trader, author, educator and advisor. He began his career in 1983 as an institutional dealer with Bank America and today specializes in trading global forex, index and commodity markets. He is the author of two Wiley books, The Universal Principles of Successful Trading (2010) and Trading the SPI (2005). Brent publishes daily newsletters for active futures traders and is a popular and sought-after international speaker.
