Trading Books

This is an excellent reference guide to interest rate option models, I used it extensively with Implementing Derivative Models (Wiley Series in Financial Engineering)while I was writing my masters thesis. Although it is a good reference, it lacks deep demonstration of how the equations are derived, throwing a lot of them assuming that the reader is an expert on the field. So in some models the book tends to be too superficial, but as I said it is an excellent reference of IR Option Models.

It's a recommended reading for our finance/numerical mth course. I have not got a chance to read through the whole book, but looks to be a good starting point for the subject matter.

The book places more emphasis on an intuitive grasp of the complex mathematics involved, though this must mean giving up rigour to an extent.

It is really a pleasure to read this book. While covering the most important topics it remains focused on the essentials. Whenever you have to deal with a concept in the literature about fixed income instruments you are not aware off Rebonato is always a good reference to start with, similar to Hull's or Wilmott's book.

Rebonato addresses consequently practical implementation issues (although not coevering the technical details of the implementation algorithms - read the original papers for that!) that are frequently missing in so many academic publications. This makes it to one of my favorit books on my book shelf. I am looking forward to his next book on intrest rate derivatives.

Rebonato covers the material on different levels, providing not only full mathematical formulations, but also the English version of the math along with explanations of significance of the topics covered. This book is excellent for those with the mathematical background to understand the math, and is easy to follow for those with less than rigorous mathematical background. I would recommend a good foundation in general option pricing (at least an introduction to Black-Scholes and lattice modeling) prior to reading this book. Futures, Options, and Swaps by Kolb and Options, Futures, and Other Derivatives by Hull would be good preliminary readings. Rebonato does a good job in discussing the various modeling techniques, along with the strengths and weaknesses of each.

After buying a large number of highly recommended trading books (including the books referred to in these reviews), this is the only book that I can depend on to clearly explain in technical detail almost any aspect of system trading that I need information on. This book is well written, comprehensive, and approaches subjects in an objective manner. It doesn't tell you how to trade, but clearly describes the different system trading strategies and indicators, their advantages and disadvantages, and practical considerations. This is a must for those developing rule based and automated trading systems.

Similar to many traders who own Perry Kaufman's 3rd edition of New Trading Systems and Methods, I ignored the publication of the 4th edition. Well, such oversight was my loss. Even a quick perusal of the work reveals a wealth of new ideas, techniques, and concepts. Kaufman offers ample inspiration for exploring trading problems in a new light.

Kaufman's encyclopedic coverage is unique. The 3rd edition contains 700 plus dense, fast paced material. The current edition adds another 500 pages of new and revised material. Each topic is examined with care; Kaufman has an ability to focus on the key concepts and omit the fluff. His presentation assumes a sophisticated, intelligent reader with solid software development, testing, and trading skills. Sloppy readers, clumsy testers, undisciplined `traders' will complain that this is not a `trading war stories book'--such complaints are correct; this is a trading SYSTEMS and METHODS handbook.

The book binding has a problem. At 1,200 pages, the adhesive binding is falling apart. This book requires either sewn through or over-sewn type binding. Shame on John Wiley for such embarrassing production quality!

Certainly not a How-To book but a compendium of trading methods, strategies, etc. This book covers everything from trading using standard methods such as moving averages to exotic methods such as planetary alignment. I use this as a reference book rather than a book to read cover to cover. The beginner may be overwhelmed with the quantity of material but well rewarded with such topics as Unexpected Price Shocks, which I have rarely seen covered. This book is extremely valuable for Tradestation users like me who aren't the best programmers. Trying something from the book couldn't be easier. The techniques import directly from the DVD into Tradestation. As a warning to readers not using Tradestation you are on your own. Some of the techniques use complex code so they would be difficult for many of us to implement on our own.

I've only gotten about a third to halfway thru the book as I can't see what the author's purpose is, whether laboring thru the rest would benefit me or not. It reads like a college level textbook of the mathematics behind technical analysis. Boring. In what I read, the author worked thru proof formulas to get to more elaborate indicators. In so doing, sometimes he explained what his formula's symbols meant and sometimes not. I sure don't want to go back thru the book to see if I can find an earlier description of what the symbols mean should I ever want to use one of the new formulas. Then he compared some of the new trend followers like standard deviation against olders ones like moving average and point and figure and behold none are really better than the others. When I get stranded on a tropical isle and am bored to tears, I will page thru the rest of it.

I've read this book thoroughly, and have found it invaluable in my own approach to trading, and in understanding the many approaches to trading and the markets in general.

BTW I have no connection with the author whatsoever, but I do have a deep appreciation for the amount of time and effort required to write a book of this magnitude. It is, perhaps, the most comprehensive book available on trading methods.

My copy is stuffed with pieces of paper that mark particularly valuable information. From market basics and charting, to fractal analysis and portfolio allocation with a genetic algorithm, the book covers practically every aspect of trading methodology. The breadth of coverage is just incredible.

There are sets of rules for William Dunnigan's Thrust Method, trading rules for gaps, Eugene Nofri's Congestion-Phase System, Tom Demark's Sequential, Raschke's First Cross, to name just a few. The list goes on and on, and is far too extensive to mention here. Many gems are hidden between the very clear and concise explanations which prepare the reader for the more complex trading methods.

If you're not familiar with trading systems and are just looking for a set of simple, step-by-step rules that will make you a lot of money in the market, then you don't need this book - you need sympathy. No book will deliver that, but many will promise to. The traders that you will be up against could be the ones that will find this book invaluable. Good luck, anyway! (You'll need it!)

If you have some experience studying the markets and are interested in an excellent overview of the most popular trading methods, and a few esoteric methods that are not easy to locate elsewhere, then this is an excellent book for that purpose, in fact, the best I've found. Even one of the methods is well worth the price, and the code on the CD-rom is a bonus.

I've often asked myself why someone would put in the vast amount of work required to write a comprehensive work on trading methods. The amount of time and effort required to compile a book of this magnitude must be truly mind boggling. His pay must come out to something like a penny an hour, if that! LOL

Obviously, it's the author's passion to find, understand and explain trading methods! And he is an expert at it. My hat's off to you, Perry! Job well done!

I have this book sadly for one of my classes.


It gives the answers to all the odd problems, but doesn't show how that answer was obtained. So basically its just gives answers with no steps showing how.

It gives problems for you to do, without showing you how. I guess your suppose to be a genius and magically figure it out.
There are a good bit of problems that the do show you how to do (to be fair), but I still think that's total BS.

I'm failing my class and I looked to the book for reference, and it did no good. I'm going to have to drop it.

I reported them to Amazon months ago - nothing's changed.
There are two different books on amazon.com:

BOOK 1: "Precalculus 5/e" by Larson & Hostetler (search for 0618052852 on amazon.com). It has a very good supplement - "Study and Solutions Guide" by Dianna Zook (0618072713).
Both books were published by Houghton Mifflin Company, which has nice resource site http://college.hmco.com/mathematics/students/.
I have no affiliation with this publisher. From the pull-down "Precalculus" window Select Title "Precalculus 5/e Larson/Hostetler ((c)2001)". You'll be very pleased with the links you find there. If you seriously want to ace Precalculus - get both - "Precalculus" and "Study...".

BOOK 2: "Precalculus Functions and Graphs: A Graphing Approach/Precalculus With Limits: A Graphing Approach (Student Study Guide)" by Larson (0618074104).

Here's one bug:
Somehow reviews posted for BOOK 1 got mirrored onto BOOK 2 or vice versa (compare books' reviews).
Another bug:
Book 2 in reality has a title "Study and Solution Guide" and its authors are Bruce Edwards and Dianna Zook (not Larson). Compare it with "Study and Solutions Guide for Precalculus Functions and Graphs : A Graphing Approach and: Precalculus With Limits : A Graphing Approach" (0669417297), which is older: 2/e, (c)1997.

Book 2 gives solutions to odd-numbered excersizes and to all Chapter Practice Tests and to Chapter and Cumulative Tests in both "Precalculus Functions and Graphs...3/e" (0618052909) and "Precalculus with Limits...3/e" (0618052917).

Those two books were published in 2001 by Houghton Mifflin Company. On http://college.hmco.com/mathematics/students/ from the pull-down "Precalculus" window select either of their titles. Click on "Purchase this Product or Study Aides" and you'll see the whole learning package which includes aforementioned "Study and Solution Guide" ISBN: (0-618-07410-4) (for some reason Bruce Edwards is dropped and only Dianna Zook is listed as author; apparently, amazon.com doesn't hold monopoly on making mistakes).

Make sure you are reading reviews relevant to the book you consider buying.

Richard Feynman, one of America's greatest physicists, once said most of the popular textbooks (on physics) were somewhat mediocre. Larson has written one that is much better than the rest. everything is explained clearly. However, I would recommend those who are aspired for an austere treatment of elementary mathematics, ie, pre-calculus and beginning calculus, to go for the book High-school mathematics by some Russian mathematicians. ISBN: 5030010114 This series is just so comprehensive with lucid explanations that every high school math teacher should take a look at it. It's both fun and benefitial to read books on math translated from another language.

I think that the book is very good.

This book consists of about 10 chapters.
(your precalc professor will probably only cover 8 of them).
Each chapter consists of about five or six topic sections.
Each section contains about 5 pages of reading and another 2 pages with review questions (approximately 90-120+ questions).

I initially bought the fifth edition and weeks later upgraded to the 6th. I see only two differences between the old and new edition. The prerequisite chapter (covering review material from previous math class) is located in the front of the 5th edition, but in the back of the 6th edition. As for the five pages of reading material per section, I found them to be exactly the same (as far as I could tell). However the review questions in the back have a somewhat different order. In my opinion, about 90% of the review question (the examples that professors assign for homework) are present in both edition. However, in the sixth edition, some of the questions are in slightly mixed order. What this means to people buying the fifth edition, is that after each math class, you'll need to compare and match the review questions in your book with those of your fellow classmate's sixth edition text. Personally I don't believe that it's worth the effort to buy the old edition, since you can find the new sixth edition ... on Amazon.com, ..., etc.
Something I strongly recommend is purchasing the solutions guide. The titles are Study and Solutions Guide by Dianna Zook, but the title is misleading. It is ONLY a solutions guide, with answers for the odd-numbered questions broken down into four steps. The text book only supplies the odd-numbered answers without being broken down into steps. ... Just keep in mind that the sixth edition textbook and solutions guide has a publish date of 2003 or 2004. The fifth edition textbook and solutions guide has a 2000 publish date.

6th edtion TEXTBOOK ISBN 0618314342
6th edition SOLUTIONS guide ISBN 0618314377

5th edition TEXTBOOK ISBN 0618052852
5th edition SOLUTIONS guide ISBN 0618072713

Another suggestion, if you're purchasing this book used, is to buy the instructor's edition version (ISBN 0618314369). I say used because the publisher doesn't allow the sales of these books to non-educators, so you'll have to purchase them from amazon's used section, ..., etc. The only difference between the standard and instructor's edition is that the standard student edition has the odd-numbered answers and the instructor's has the odd and EVEN-numbered answers. Unfortunately these answers are only answers and not broken down solutions. You'll have to buy the solutions guide to have those and even then you'll only get the odd-numbered broken down solutions.

As for the #1 rule of math and science courses:

It's a well accepted rule of thumb that a student should study 2 hours per week for every 1 hour in class. For example if you're taking a four credit hour precalculus course, you should be studying an additional eight hours per week on top of the four in class. For those of you who work and don't have that kind of time, I would recommend that you study at least 1 hour per week per hour you're in class. That means you'd be in class four hours per week and would study another four outside class. Trust me, if you don't do this, you won't pass! Another note about this book, don't let the reading discourage you; a lot of this text reads as if speaking to a mathematician, not a lonely undergraduate student. Even if you don't understand all the theorems thrown at you (trust me you won't) continue reading and MOST IMPORTANT: do the review quesions. At least do the review questions that your teacher assigns, but if you can do them all or at least the odd-numbered ones, it would serve you well to do so.
If you haven't looked at a math book for over five years, might I recommend that you purchase a math video tape tutorial. It won't substitute for going to class or buying the text book, but it's a great introduction and was very helpful to me in calculus. On Amazon.com just type "Standard Deviants pre-calculus" (free shipping over $25 is good incentive to buy from here) or go directly to company's website if you want descriptions of what these VHS / DVD discs are about. Word of caution, buy "standard deviants" NOT "standard deviants school" which are much bigger volumes geared toward school learning environments.

...

Good luck,

Rob

I've just been introduced to the Investools.com course, took their 2 day training, finished their online training, and am still studying the subject.

The title of this book described what I was looking for after the above activity and it proves to tie information together, plus provides direction and greater depth.

I am a technical writer by trade and based on that, am amazed at the clarity and amount of detail Toni Turner packs into each paragraph. Because of that, this shouldn't be the first book to introduce you to the subject, but it should be among the first books you read. If you are already a successful, experienced trader, I'm not sure of its value unless you are switching from a "buy and hold" mold.

My approach to this book is to do a 100% read-through, marking pages of particular interest, then returning to those pages of particular interest, along with other activities on Investools.com (which, itself, seems to be a worthy educational tool).

Toni Turner has written an overall informative and fairly comprehensive guide to investing in the stock market. If you have read a lot of other investment books, you won't find a lot of new material in this book. But, as with most books on trading, there are almost always a couple of little gems hidden in the pages that justify the expense.

This book is certainly a good 'primer' for anyone just getting into investing or who wishes to get past just sticking money in their 401K account. It is a good next book past "Investing for Idiots," and a good prerequisite before tackling a book like John Murphy's "Technical Analysis of the Financial Markets."

For those more interested in simple, long-term investing, I would recommend a book like Leslie Masonson's "All ABout Market Timing."

I read a lot of trading books and have been trading for quite a while. I am always searching for a better book and new ideas. While this book doesn't have any revelations, it does do a wonderful job of reviewing the basics in an easily digestive manner. The author even has some review questions at the end of each chapter to see if you have a good understanding of the material. I particularly like the way the author discusses her stock picks and tells you what she is looking at and her decision process. It helped me ask some different (and better) questions concerning my stock selection before I entered a trade. There are some intermediate level discussions of indicators but very little on system trading (which I am currently researching). All in all an enjoyable book.

I just finished reading Toni's newest book, Short-Term Trading in the New Stock Market. I am happy to report that each chapter has given me helpful advice. I have been trading for five years, and even in the initial chapters, which talk to newer traders, I learned useful points and strategies that I had forgotten, or had not previously known.

Toni teaches trading with a fast-paced writing style and a sense of humor that I appreciate. I particularly liked her chapters on ETFs: their origins, the benefits of trading and hedging with these funds, and where to find them. (She provides a list of the most actively traded.) Her discussion on market internals, meaning futures, TICK, TRIN, put/call ratio and VIX were very helpful to my day trading strategies.

Unlike other trading authors, Toni keeps her ego out of the picture. And, she adds very useful information between chapters on behavioral concept that help keep your trading mindset clear and constructive. All in all, I enjoyed this book very much and have recommended it to my trading friends.

Most of the info on stock trading is full of the same thecnical analysis jargon that makes you lose a lot of times.

Basically most tehcnical trading books tell you the same story but organized in different chapters using different words and charts as examples.

[...]

Understanding how to trade a rally is one of the most important aspects of trading, since for us traders it's all about the rally, either for shorting or going long.

Well worth the price and the read. Very technical and precise. You'll need to read it at least twice but the rewards are astronomical: you'll actually begin to understand how to invest with knowledge (not fear) in the game of the stock market.

A very helpful insight into some of the most commonly used technical indicators for market and individual security price trends. The book offers good explanation of what each indicator is designed to measure and how some of the indicators are used together. Concise, easy to understand and apply---a good resource for anyone investing in paper assests.

Mark has written & spoken of his years of successful trading to thousands across the United States & other countries. I have known him for several years & consider him a sincere giver who is willing to help anyone who is interested in improving their investment skills.
Mark not only can talk the talk BUT he truly can walk the walk. He is proud to display his investment portfolio & does so in many of his investment classes. May God continue to Bless Mark & his family.

THIS IS ONE OF THE BEST OPTION BOOKS I HAVE EVER READ.IT TOTALLY CLEARED UP MY CONFUSION WITH INFORMATION OVERLOAD.IT WAS VERY HELPFUL TO READ MARKS THOUGHT PROCESSES BEHIND THE TRADE AS WELL AS TO LOOK AT THE CHARTS WITH HIS IDENTIFIED TECHNICALS.HIS DETAILED DESCRIPTIONS ENABLED ME TO SEE WHAT I WAS DOING WRONG.THIS BOOK TOTALLY INCREASED MY CONFIDENCE LEVEL IN TRADING OPTIONS AS WELL AS THE PROFITS I HAVE MADE SEVERAL MONTHS IN A ROW SELLING NAKED PUTS ON ABAX , WEBX AND SBUX. THANKS LARSON!!!! MARY

First of all, the writing style. Larson's writing style is easy to follow, but the book itself is badly edited, with lots of padding. For example, we learn on P.69 about the 25 day DMA and two pages later the 200 DMA is presented. I had hoped for a better discussion of TC2000's proprietary indicators, MS, TSV and BOP, but the book presents a rehash of the documentation supplied with the software.

More important is the book's target audience. Don't even bother buying this book uless you intend to use Worden's TC2000 charting software. All discussions, indicators and charts are explained using this software as reference. On the other hand, if you have this software, you presumably already have a good understanding of the standard and proprietary indicators supplied with the package, and don't need lengthy tutorials on moving averages and relative strength. In this respect, the book's audience is unclear.

For me, what the book missed was material for the advanced TC2000 user, such as using the software's scanning and programming language capabilities. I assume that Larson himself is an advanced TC2000 user, it would have been nice if he had included some trading strategies making use of the software's advanced capabilities.
Sadly, all this is missing.

The author goes right to the point. He explains well the VaR-related mathematics. There are a few mistakes, which would be easier to note if all derivations were provided. Overall, this is an excellent book.

When we went to implement a VaR system, the price tag was going to exceed seven figures. Needless to say, I didn't hesitate to drop some money buying the available books on VaR. They all say essentially the same things. For practical worked examples, you can't beat Butler. But unless you are an absolute beginner (do you know what delta and gamma are?) you may find it too basic. The all-round best book is Dowd. It is well organized and a pleasure to read. It covers the math, but without getting bogged down in meaningless derivations. For readers who want more information, there are plenty of references to original sources. I followed up on a number of these, and was pleasantly surprised at how easy some of this stuff is to assimilate.

Best book on VaR to date. Clear, concise, self-contained. Perfect combination of rigurous theory with practical applications. The author has done an excellent job at distilling what is relevant in Risk Management. This book is better than all the other VaR books written so far combined.

The author has done good work in introducing the basic concepts in Value-at-Risk. However, the text leaves some important statistical and implementation points hidden, making implementing VaR look far too easy. For example, there is no discussion about the problems involved in long-term forecasting of correlations and volatilities.

The much advertised "new distinctive investment approach", the so called "Generalized Sharpe Rule" is a rather naive treatment on classical risk/return analysis. However, the lack of mathematical rigour is well compensated with good references.

The author has done good work in introducing the basic concepts in Value-at-Risk. However, the text leaves some important statistical and implementation points hidden, making implementing VaR look far too easy. For example, there is no discussion about the problems involved in long-term forecasting of correlations and volatilities.

The much advertised "new distinctive investment approach", the so called "Generalized Sharpe Rule" is a rather naive treatment on classical risk/return analysis. However, the lack of mathematical rigour is well compensated with good references.

Believe the title! If you read BusinessWeek and have Internet access, this book is a waste of your time. While it defines the most basic terms of the Internet and investing (which you already know if you read the business section of your newspaper or a business magazine), it does not explain the more intricate methods of investing. The book is really a compendium of web sites. For example, instead of explaining HOW TO DO fundamental analysis, it tells you to go read a web site. Save your money. Search the web at www.dogpile.com with the term "investing" and get the same results free, in an instant.

OK, the book says it is for idiot's but come on, don't mean that literally! If you are a wee bit technical and understand the online world this book has a few chapters you can easily skip. Also, the author does not care to explain stuff like index funds, the various industry indexes, etc. The book has a load of good web links in it though. I wish the author had listed all the links at the end of the book in an appendix.

You can live without this book. The same information is available for free online.

I am a self-confessed rank beginner in the world of investing in general and online investing in particular.

This book starts you off with the REAL basics - ie assuming no knowledge of connecting to the internet (admittedly tedious for most these days...) and then guides you by the hand through various websites where enourmous amounts of information are found...

I don't imagine it is the almanac of investing for a moment...but it doesn't promise to be either. More of a roadmap - showing what's out and about to use as you get more proficient at investing.

I would like to see what an actual trader thinks of it...but seems to be a refreshingly unpretentious place to start for the utterly confused...if not completely idiotic.

-h@wkspy

This book was a lifesaver when I decided to jump into the waters of investing. With chapters to devoted to different aspects of investing, it was very easy to find exactly what I was looking for. And the book didn't stop with definitions like so many of the books I picked up -- it told me where to go on the Web to apply what I'd learned. This book is great for anyone that knows they should be investing, but who needs that extra "push" to get moving!

I didnt know anything about investing, not even what tickers are...but now after reading this book....i learned SOOOOOO MUCH!!!

I'm a newbie to trading and this is the perfect book for me. It's like spending a few hours/days talking to a friend and getting sincere, thorough advice. I have always thought it would take many months (and years?) of preparation before one should jump into trading, this book confirms that and laid out all the tools and skills you should be equipped with before attempting real day trading. It provides two techniques to get started with, perfect for someone starting out. I've found few resources where someone takes the time and patience to explain a technique from beginning to end, correlating the developing chart with all the other indicators that you should be watching for before a buy/sell is made. If you are an advance (successful?) trader, obviously this is not the book for you since you've already mastered your skills, but if you are starting out and want one single resource that will point you in the right direction, this is a must read.

Methods are outdated and rely more or less on the momentum stock craze of the late 90's.(example: csco was 70 a share when they wrote the book and is used in most or their examples.) I highly doubt they are still trading. Daytrading is a tough business so look to get reliable infomation. Dont start with this book. Sorry to be so critical but its just bad information to sell to the public.

This is a good book, if it were one of the first on the subject. The title is the most inventive aspect of the text. If your a west coast person it certainly applies to you. It uses other peoples methods but they are solid. The authors give credit to their sources which is a welcome change. However those methods have not made millionares. If you have not read a book on day trading this would be a good place to start.

With all the hype about day trading and with the Nasdaq market subject to such wild swings I was looking to take some of my money and attempt to leverage my knowledge base. I have been an enterprise networking products sales person and I consider myself reasonably savvy about emerging trends in technology. Reading this book was my "look before you leap," and provided me with some sound investing guidelines, philosophies, nuggets of information and the kind of reality check that will make this endeavor less akin to buying a lottery ticket. I recommend it for anyone who's interested in managing their own investments.

Nothing you could not find for free in internet.
I'm glad if the authors are making any profit from this book, because I doubt they are earning much by trading if all they know is put in here...

The book is well written and easy to read. I have learned a great deal from it. So far, it is the best book I've read about trading system design and development. I recommend it to anybody who is serious about trading systems.

Very well written (simple English) that help to organize thoughts of trading. and it help to improve your level of thinking about trading in general. little book, but very useful. It is very good start to learn how to make a mechanical trading system based on the ideas that you think "should work in the market" then you can back test and forward test those ideas. in this way you will see the weakness and the strength of your way of approaching the market. that will lead to one or more step ahead on you journey to achieve your goals in trading. it is simple and makes you do this tough task with the least possible amount of time.

I have never written a comment about a book, but hopefully other people will at least be warned. This is the one of the worst books I've ever read. I have read several Wiley books; most of them are poorly written and lacking substance. This one is unbelievably bad.
This book deserves a negative five stars. (Who wrote those other reviews?)
If you have never read a book on trading systems, then this book is may tell you something. Otherwise, save your money. There's nothing here.

I agree in part with the reviewer that has given 1 star to this book. I have not finished this book yet, and in fact I bought this book because of the numerous 5 stars reviews.

Many definitions appear only after they are mentioned in the text, so that perhaps you need to read and reread for this book to be useful.

Let me state my biases up front. I've always been rather suspicious of so-called "mechanical" trading strategies, although I'm a strong supporter of a technical approach to the market.

Technical analysis, for me, has always been about individual market participants, as a group, are likely to respond to price action to further their interest for profits, or to conserve capital. Market players are not mindless robots who are as predictable as coin flips, but people pursuing goals, and who learn from history. How the market reacts to news and fundamental info is extremely important from this point of view.

While there are things that can be learned from looking at price action, any algorithm that can extract profits from markets is likely to be short lived. With the advent of cheap, powerful computers, it is all too easy to "test" a system on historical data, only to have it fail in real time. Proper system testing is difficult to do.

Even if testing is done properly, it is likely to have been found by a significant number of smart, well-capitalized people long before you or I ever came onto the scene, making historical test results misleading, possibly unprofitable.

The fact is, markets change, and the context of price action in the past may be totally different to the current market environment. How do market systems account for market change, while still producing valid results?

This book allayed some of my fears. Since system testing IS hard to do, it is unlikely that a significant percentage of people will discover the signals of a profitable system, making the method unprofitable.

Even a skeptic such as myself will admit that proper historical testing can, at the very least, encourage thought about future market conditions, and prepare for various scenarios.

Most important (to me), system testing provides a reasonable method for adapting to changing markets. As new data comes in, the model can, and should, change.

This book teaches you how to do proper system testing, so you can have confidence in your results.

I deduct 1 star from the emphasis on the use of a frequentist statistical methodology. It is becoming clear in economics that talk of "long run frequencies" makes little sense for historical events that occur in a particular place, or a particular time, and are not likely to be repeated.

The use of Bayesian methods based on a subjective interpretation of probability (ie. degrees of belief), are growing in usage, and can provide more appropriate answers to certain questions that the "frequentist" methods do not.

For experienced technicians, I can recommend it.

I got this book at a boookstore in Niagara Falls,NY and when I first read it I noticed all the mistakes and my copy has pencil-mark corections all over it because I can't stand things like that.

A. Ryan Nerz does a good job when it comes to the stats, but it's lacking something when it comes to descriptions. Most of them simply say what the Digimon looks like (as if the pictures didn't show us)and their attacks. That's usually about it, unless they add how scary or strong the Digimon is and that we should watch out for them. Sometimes they throw in an extra bit, like what part they played in the show, which is a plus. All in all, it's a nice book despite the not up to par descriptions. Extras include and FAQ, show information, and Digidestined information.

The official review of this book was misleading. As a result of the review, I expected to find each name written in both English and Japanese.

It was a pretty cool book, but I warn you-there are bloopers!Especially if you watch the show, you'll notice everything wrong in this book.There is A-LOT of things they messed up on.Well any how, this book gives info on Digimon you never knew. A great book for the Digimon fans.

What a great book. I take it with me everywhere I go. It's oosome. I mean, yeah, it has some mistakes, but it still has more Digimon characters and concepts than any other guide or book. A. Ryan Nerz rocks, and so does this guide!

Werner