Customer Reviews

Macro Trading & Investment Strategies : Macroeconomic Arbitrage in Global Markets (Wiley Trading Advantage Series)

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2 star:		(1)
1 star:		(2)

 

 

I cannot be overly critical of this book merely due to my own preconceived notions of what it might be. I was expecting some sort of more hands-on version of Soros' "Alchemy". What I got was nothing of the kind. The trade examples are very simplistic and the book poorly constructed, laid out, and written. The entire work could be 2-3 chapters in normal prose and outline. The strategies discussed were somewhat advanced strategies that were described in an extremely simplistic manner. Somewhat akin to Sesame Street giving instructions on how to manage an options book. I was sorely disappointed as I know the author is capable of delivering a much more intriguing work.

The book is based on ex post iteration of events and investment strategies, which lacks the necessary foundation of macroeconomic introduction. It requires extensive knowledge of macroeconomics and finance in order to grasp (or digest) what the ideas behind strategies are. Clearly not for a beginner but I would not recommend it for an experienced fund manager at all. I found most of the examples and strategies highly simple.

When I first saw this book and ordered it i was very excited to learn more about the intricies of macro trading. After reading about 1/2 of the book I could tell I just wasted $40. I found that the authors comparison of two different variables on 1 graph with 2 Y axis was statistically wrong. You cannot compare two different variables on absolute movement at all, espically when you are using two different scales on the same graph. Using this method of comparison sun-spots and the S&P500 have correlated. The correct way to do this is by comparing percentage movement of the two different variables. By doing this with my previos example there is no real correlation, jsut as one would think. I would assume that the same would occur for 1/2 of this books graphs.

All in all, buy, Market-Neutral Investing : Long/Short Hedge Fund Strategies by Joseph G. Nicholas, You'll apperciate it alot more and it isn't flawed like the book on this page!

Feeling brave? If you are, crack Burstein's book and have a look at how some serious big-time money works. Of course, by defintion this is not the majority of market participants so this is not a "popular" read.

But scientific truth, like a successful P&L statement, is not democratic. Either it makes money or it does not. And if does, you can bet that a few will get it right but most won't.

As an arbitrageur, Burstien's book is an excellent unfair advantage to those who are able to heed its message.

Christopher MAY - author Nonlinear Pricing