Robert Pardo – Design Testing And Optimisation Of Trading Systems
A practical, hands-on guide to setting up, adjusting, and trading mechanical systems that requires no computer or programming skills!
Hereβs everything youβll need to develop and verify each stage of a profitable trading strategy, from formulation through testing to real-time trading. Armed with the authorβs battery of easily accomplished testing and optimization techniques β many never before published β youβll design a workable trading strategy, reliably measure its profit potential and risk, and then test to see if it works in real-time trading.
No matter what your level of trading expertise, now you can swiftly isolate and eliminate the causes of trading failure and make the decisions essential to profitable computerized trading. Youβll discover:
β The seven major components of mechanical trading strategies and their uses
β When and how to use fast, accurate and realistic computer simulations to evaluate a strategyβs trading performance without risking precious capital
β The best ways to tailor a trading strategy to fit the unique personalities of widely different markets
β What to expect from a trading model in real-time trading
This book helps you develop, evaluate, and apply a winning computer trading system that suits your specific needs.
Contents of Design, Testing and Optimisation of Trading Systems
1. On Optimization
2. Trading System Development
3. Trading System Structure
4. The Rules of Simulation
5. Search and Judgment
6. Exercises in Testing
7. Optimizing the Trading System
8. The Evaluation Of Performance
9. The Many faces Of Overfitting
10. The Evaluation of Real-Time Trading
Index
About Author:
Robert PardoΒ is the President and CEO of Pardo Capital Management, LLC and is its primary strategist and portfolio manager. Robert has been instrumental in laying the initial foundations of what have become industry-wide algorithmic software applications, advancing how systematic trading is done today.
Robert expressed his ideas about the testing and development of trading systems in his highly regarded book titled The Design, Testing and Optimization of Trading Systems (DTOTS), published by J. Wiley & Sons in 1991. This book β referred to in the industry as the βBlack Bibleβ β has long enjoyed the international acclaim of the trading community and is widely considered a trading classic. He updated DTOTS in 2007 in a renamed and greatly expanded 2nd edition The Evaluation and Optimization of Trading Strategies.
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