Beyond Technical Analysis: How to Develop and Implement a Winning Trading System, 2nd Edition [Hardcover]

Tushar S. Chande (Author)

Book Description

Series: Wiley Trading | Publication Date: May 11, 2001

A technical analysis classic, newly updated to help traders develop and forward-test a high-performance trading system for today's markets
In trading, a winning system is everything. While it is theoretically possible to buy a "canned" trading system, most experts agree that the best system is proprietary to each trader--developed, implemented, and tested by the individual to suit his or her exact requirements. A stimulating mix of cutting-edge techniques, timeless principles, and practical guidelines, this updated edition of a technical analysis classic offers traders a comprehensive methodology to develop and implement your own trading system, bridging the gap between analysis and execution.
Tushar Chande (Pittsburgh, PA) holds nine U.S. patents for creative solutions to flexible manufacturing problems using high-power lasers and optical fibers. A contributing editor to Technical Analysis of Stocks & Commodities magazine, he has been a registered Commodity Trading Advisor and is the principal author of The New Technical Trader (0-471-59780-5) (Wiley).

Editorial Reviews

From the Publisher

In this book/software package, acclaimed technical trading system developer Tushar Chande shows individual and professional traders how to develop and implement a winning trading system, and how to test its future performance through computer simulation. Users can "paper trade" their personal trading system before using it in the real world, accurately estimating how well they can cope with the day-to-day pressures of implementing the system when their capital is at risk and emotions are involved. --This text refers to an out of print or unavailable edition of this title.

From the Inside Flap

If you want to achieve enduring trading success then it's essential that you create a winning trading system, control your risks, and withstand the psychological pressure of the markets. Whether a beginner or an expert, now you can reap profits from stocks or futures using the proven trading systems, robust risk-control methods, and powerful new tools from sports psychology in the updated and expanded second edition of Beyond Technical Analysis.

Written by successful Commodity Trading Advisor and acclaimed system developer Tushar Chande, Beyond Technical Analysis takes you step-by-step through the process of creating trading systems that match your trading beliefs and profit objectives. Offering a stimulating mix of cutting-edge techniques, timeless principles, and practical guidelines, the second edition will enable you to develop and implement customized systems that carefully balance risk and reward. It bridges the gap between analysis and trading so that you can acquire the competencies needed for consistent profitability.

For beginners, the second edition of Beyond Technical Analysis provides an easy and effective introduction to building superior trading systems, including an overview of entry and exit strategies, a detailed review of testing techniques, and an all-new primer on technical analysis.

Experts will be introduced to the Chande Comfort Zone that uses new tools for estimating expected returns, depth of drawdowns, and duration of drawdowns. Also, Chande gives a true out-of-sample performance update of the systems presented in the first edition, highlighting how these systems have stood the test of time.

For investors and allocators, Chande shows how to benchmark performance, stabilize manager rankings, build more efficient portfolios, and create specific risk control plans for monitoring performance.

With this comprehensive book, you'll also learn how to:
* Find entries and exits consistent with your trading beliefs
* Avoid common pitfalls in system testing
* Write and test trading systems using commercial software
* Correctly interpret test results
* Create profitable trading strategies
* Define, control, and manage risk
* Manage trading stress using sports psychology
* Focus on disciplined execution

A complete and thorough guide, Beyond Technical Analysis, Second Edition will help you build robust trading systems and follow sound money management and risk control techniques that will give you the winning edge.

See all Editorial Reviews

Product Details

• Hardcover: 336 pages
• Publisher: Wiley; 2 edition (May 11, 2001)
• Language: English
• ISBN-10: 0471415677
• ISBN-13: 978-0471415671
• Product Dimensions: 9.2 x 6.3 x 1.2 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #240,817 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

25 of 27 people found the following review helpful:

5.0 out of 5 stars Some good ideas, May 21, 2008

By 

David Lockwood (Canberra, ACT Australia) - See all my reviews
(REAL NAME)   

This review is from: Beyond Technical Analysis: How to Develop and Implement a Winning Trading System, 2nd Edition (Hardcover)

I'm a bit surprised by some of the negative reviews of this book. I've got most of the popular books on building mechanical trading systems - eg. Kaufman, Katz, Faith, Pardo, Pring, and a few others I can't remember off the top of my head. And I would say this is one of the more useful books on the subject.

Another reviewer suggested that some of the systems were weak - I guess he means they're not incredibly profitable in their generic form. Well, I read books like this simply for some new ideas that I can take away to work on myself.

After all, where's the fun of having all the work done for you by someone else? If in my dotage I ever find the energy to write a book on system design, you can bet I won't give away my most profitable systems in their finished form. I've spent far too many years and tens of thousands of dollars perfecting them. Why would I give that away to some lazy so and so for a few bucks?

The value of this book is that it has a few fairly original ideas (and more than a few conventional ones) that can form the basis for further research. Some of the material may be beyond the novice trader, but intermediate to advanced mechanical traders will probably find something of value here. And Chande's discussion of equity curves and data scrambling is significantly better than many other books on the subject.

61 of 74 people found the following review helpful:

2.0 out of 5 stars Don't bother, September 7, 2000

By A Customer

This review is from: Beyond Technical Analysis: How to Develop and Implement a Winning Trading System (Wiley Finance) (Hardcover)

Chande is a respected technical analyst, but his book is lacking. The trading concepts he brings out are interesting, but the systems themselves are weak. Someone might be able to take his concepts and improve upon them by writing better systems based on his ideas. For example the "channel-break pullback" pattern is a very valid concept. The code does not capture, in my opinion, a real life breakout and pullback. To place an arbitrary number of days to buy on a pullback, instead of using conditions to verify the completion of the pullback is like saying the market will always top or bottom after "n" number of days.

I was very disappointed especially with the high price of the book. These systems will not improve your bottom line. Pass.

10 of 11 people found the following review helpful:

5.0 out of 5 stars Don't Be Swayed By Other Reviewers Negativity, This Book Will Make You A Better Trader, November 9, 2008

By 

Amazon Book Lover (USA) - See all my reviews

Amazon Verified Purchase

This review is from: Beyond Technical Analysis: How to Develop and Implement a Winning Trading System, 2nd Edition (Hardcover)

I read this book a while back, on the recommendation of Bennett McDowell who wrote "A Trader's Money Management System" A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin (Wiley Trading) and finally have had a chance to put my thoughts in a review.

I'm surprised by the negative reviews of this book -- it is an effective book on getting you to analyze your risk, and he even gives you the 1-1/2% and 2% risk of ruin tables to do that. Nice of him to do the programming so that we can determine which is the right risk amount to take on each trade at the lower end of the percentage scale.

His equity curve chapters are also important in helping to shed light on how to look at performance in a meaningful way. This is one of the most useful books available today -- in a sea of not so useful books. It's really worth adding to your library.