Trading Books: Quantitative Trading Systems: Practical Methods for Design, Testing, and Validation

Author: Howard B. Bandy
Publisher: Blue Owl Press
Year: 2011

Topics Covered: 

  • How trading and investing differ
  • Why almost all investors are traders
  • Comparison of trading system software
  • Introduction to Amibroker trading software
  • How to evaluate trading systems
  • How to select a system that you will be comfortable with
  • What to trade
  • How often trade
  • How to use fundamental data
  • Where to get data and how to prepare it
  • Principles of system design and testing
  • Specific entry signals
  • Several exit techniques
  • Many trading system examples
  • How to analyze in-sample and out-of-sample results
  • Statistically sound validation techniques
  • Walk forward testing 
  • How to tell when a trading system is broken
  • Broad market timing
  • Intermarket analysis and filters
  • Equity curve analysis
  • Sector analysis and rotation methods
  • Portfolio construction
  • Monte Carlo analysis
  • Position sizing

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Quantitative trading systems practical methods for design, testing, and validation

Trading Book Review of ‘Quantitative Trading Systems: Practical Methods for Design, Testing, and Validation’ by Howard B. Bandy:

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Adrian Reid Founder and CEO
Adrian is a full-time private trader based in Australia and also the Founder and Trading Coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable systems trading. Following his successful adoption of systematic trading which generated him hundreds of thousands of dollars a year using just 30 minutes a day to manage his system trading workflow, Adrian made the easy decision to leave his professional work in the corporate world in 2012. Adrian trades long/short across US, Australian and international stock markets and the cryptocurrency markets. His trading systems are now fully automated and have consistently outperformed international share markets with dramatically reduced risk over the past 20+ years. Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.