Quality Money Management: Process Engineering and Best Practices for Systematic Trading and Investment (Financial Market Technology) (Hardcover)

by Andrew Kumiega (Author), Benjamin Van Vliet (Author)
Key Phrases: quality money management, research quantitative methods, probationary trading, Money Document, Monte Carlo, Six Sigma (more...)

Editorial Reviews

Review
"Benjamin Van Vliet and Andrew Kumiega give a complete and methodological approach to building trading and investment systems. They cover all you need to know to understand back-testing and prototyping of trading algorithms. Our team had their methodology in mind when they designed our analytical tool, Resolver One, to ensure quality, reliability and consistency when developing trading systems from ideas through prototype to production. A one-stop book for building systematic trading and investment systems."
-Jean Viry-Babel, Head of Sales, ResolverSystems, London, United Kingdom

"I believe Kumiega and Van Vliet's blending of two disciplines - Quality and Finance - is the next step in the evolution of the financial industry. This approach will make financial processes more effective and efficient."
-M. Zia Hassan, Fellow of the American Society for Quality, Dean Emeritus and Professor, Stuart School of Business, Chicago IL

Book Description
Professionals in financial technology outline the best way to build or buy a program trading system

See all Editorial Reviews

Product Details

• Hardcover: 304 pages
• Publisher: Academic Press (March 3, 2008)
• Language: English
• ISBN-10: 0123725496
• ISBN-13: 978-0123725493
• Product Dimensions: 10.4 x 7.2 x 1 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #651,487 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 2 people found the following review helpful:

5.0 out of 5 stars An Essential Reference Book Blending Quality, Best Practices & Process Engineering, May 13, 2008

By	Brendan Michaels (Chicago, IL USA) - See all my reviews

Quality Money Management is an impressive reference book, very well laid out and pleasing to read. The book presents an innovative methodology that combines quality best practices with Investment Management. The chapter describing the components of the methodology alone is worth having the book on my desk. The book has an innovation technique of using a 'Money Document' deliverable to formalize a business case for presenting to seed capital investors to fund a new investment strategy. The stages and the numerous techniques in the Quality Money Management Methodology provides a clear systematic roadmap for a complex initiative of developing, testing and managing the portfolio of a new trading system. This book is a key tool in my knowledge base that takes my deliverables to a new level of quality and fluidity.

1 of 1 people found the following review helpful:

5.0 out of 5 stars Excellent framework for systematic trading process., December 19, 2008

By	Bachelier "Husband, Father, Catholic, Finance... (Ile de France) - See all my reviews

Quality Money Management (QMM) is an excellent book, providing a framework for business systems processes in asset management firms.
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QMM offers method and structure aiming for "best practices" for investment management firms. This is a excellent work for those rolling out a new strategy, fund offering, or business line.
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The focus is on systematic trading, but many of these processes are adaptable for custody chain or decision making for more discretionary investment methods, however the emphasis is on complex market microstructure and the developing, testing and managing portfolios of a new trading system.
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Emphasis is additionally on financial software and human interface with software, so this is an excellent resource for those who support or develop application for traders.
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The cycle of "continuous improvement" is as old as Edward W. Deming's pioneering work in the 1950s, however it is refreshing to see it applied to making systematic trading smooth.
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This is an excellent book for improving a framework in place, or for starting from scratch.

3 of 4 people found the following review helpful:

5.0 out of 5 stars Treasure chest, April 11, 2008

By	Leon J. Peeters (Naperville, Illinois United States) - See all my reviews (REAL NAME)

This book is a valuable checklist for managers responsible for the development of financial (software) systems. Development teams will profit by studying this book before starting a new project.
Although formal process quality improvement has been around for several years, the contribution of these authors is unique in the way they have combined the best of the many techniques available and explained where and when their use is appropriate in the development of a financial application.
The reader should be aware that despite its encyclopedic and cookbook appearance, this book is only a starting point for the practitioner. As the authors point out: Every project will need its own customized set of processes. Their K|V methodology provides the framework.
The second thing to be aware of is that a book that covers the entire methodology can not possibly cover the details on all techniques. It is especially important to keep this in mind in the quality improvement area where technique seem trivial. In my own experience I have seen teams dismiss techniques such as the "Five whys" and fish-bone diagrams, because their facilitators were insufficiently aware of the subtleties of these methods. Both of these techniques are described in the book in sufficient manner so that the prospective user will understand their usefulness. The next step will be to learn the details in specialized books. Similar comments could be made in regards to code inspections and reviews.
There are many more techniques in this book with whom I do not have personal experience, so I am extrapolating when assuming that the level of treatment would be the same. If it were not, than we could complain about unequal treatment. If it is, then we still have an excellent book that not only raises awareness but also gives very direct and specific guidelines.
An advantage of the chosen level is that the book can touch upon many more techniques without being too voluminous.
And maybe most importantly, it keeps it readable for higher management which is important when using the book to get their support.
Teams starting a new project should read this together, then decide how to proceed. Teams finding themselves drowning might very well find some ideas to work themselves out of their problems.