Book Description
Get the bestselling guide to trading systems, now updated for the 21st century.

For more than two decades, futures traders have turned to the classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Perry Kaufman, a leading futures expert highly respected for his years of experience in research and trading, has thoroughly updated this bestselling guide, adding more systems, more methods, and extensive risk analysis to keep this the most comprehensive and instructional book on trading systems today. His detailed, hands-on manual offers a complete analysis, using a systematic approach with in-depth explanations of each technique. This edition also includes a CD-ROM that contains the TradeStation EasyLanguage program, Excel spreadsheets, and Fortran programs that appear in the book.


From the Inside Flap
As markets evolve, so must the strategies used to trade them. No one understands this more than Perry Kaufman—one of today's most respected futures experts. For more than twenty-five years, traders have turned to Kaufman's classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Now, in New Trading Systems and Methods, Fourth Edition, Kaufman thoroughly updates his bestselling guide—adding more systems, more methods, and an extensive array of risk analysis techniques—and shows you the best ways to trade today's futures and equities markets. The companion CD-ROM, which contains TradeStation® code and Excel spreadsheets, has been added to help you electronically implement the systems and methods mentioned throughout the book.

New Trading Systems and Methods, Fourth Edition provides you with a complete understanding of the tools and techniques needed to develop or choose a trading program that is right for you. It begins with a discussion of basic concepts, including definitions, how much data to use, how to create an index, some statistics and probability, and other tools that will be used throughout the book, then moves on to techniques that are most important to trading—identifying the trend and momentum. Other chapters are organized by common grouping so that you can compare the different ways that similar problems have been solved. The systematic approach to charting has been significantly expanded in this edition, showing how various patterns can be compared to other systematic methods, or how techniques such as identifying support and resistance, or channels, can be computerized. Examples include a wide range of futures and stocks.

New Trading Systems and Methods, Fourth Edition doesn't attempt to prove that one system is better than another, because it's impossible to know what will happen in the future or how you will cleverly apply these techniques. Instead, it tries to evaluate the conditions under which certain methods are likely to do better and the situations that will be harmful to specific approaches. By grouping similar systems and techniques together, you'll be able to personally compare the differences and study the results. Seeing how analysts have modified existing ideas can help you decide how to proceed and give you an understanding of why you might choose one path over another. Since no trader can be successful without controlling risk, this edition also includes expanded coverage of portfolio allocation, which will allow you to efficiently balance trading exposure.

As the competition for trading profits gets keener, you need to look for more innovative—and sometimes more extensive—solutions. You need strategies that are different from those of other traders. You need the tools, skills, and awareness that only New Trading Systems and Methods, Fourth Edition can provide.


About the Author
PERRY J. KAUFMAN is a leading expert in trading systems. Renowned for his mathematical skills and insight, Kaufman has developed significant theories in the area of price forecasting and portfolio allocation. As a consultant to many major investment companies and as a principal of successful investment funds, he has been actively involved in the practical analysis needed to support international investment management. Kaufman is the author of A Short Course in Technical Trading (Wiley) as well as eight other books. He has published numerous articles in Technical Analysis of Stocks & Commodities, Futures Industry, and Futures magazine. Mr. Kaufman has taught both statistics and trading at the graduate schools of major universities. Throughout the years, he has presented his ideas at professional seminars. Mr. Kaufman can be reached at pjk@perrykaufman.com.

FROM THE PUBLISHER