I will be presenting a free webinar with material taken from my newest book -- Quantitative Technical Analysis.
You are all invited. Here is a link to the invitation:
Free Webinar -- Dr. Howard Bandy -- Quantitative Technical Analysis You are invited to a free webinar. Dr. Howard Bandy will be discussing his newest book.
The book is in preparation. If everything goes well, publication is expected to be about October, 2014.
There is considerable new material in the book, particularly in three areas.
One is risk. I show how to quantify personal tolerance for risk -- even plot it on a chart. Then use risk tolerance to normalize trading system performance, determining the maximum safe position size, which I call safe-f, that will hold drawdown to within your risk tolerance.
Two is objective function. Following from risk normalization, a near-universal objective function, which I call CAR25, can be read from the distribution of trading results.
Three is position sizing. Nothing about trading system is stationary. Performance changes as the data changes and the model is unable to adjust completely. In particular, position size is not stationary. Management of trading is based on recent performance, which is the only indication of system health available. A trading management technique I call dynamic position sizing adjusts position size trade-by-trade to maximize account growth while holding risk of drawdown within your personal tolerance. When the system is beginning to fail, dynamic position sizing will reduce your the position size indicated for the next trade to zero, taking your system offline before bankrupting your trading account.
The book has its own website:
There is a draft of the first chapter on the /book page.
Comments and suggestions are welcome.
Publication schedule updates will be posted on the book's page.