Description
In the seemingly complex trading world where every trader strives to better other traders out there, individual traders seem to be losing the battle against the professional ones. Ernest Chan’s Quantitative Trading will arm you with a powerful algorithmic trading prowess that, when studied and applied carefully, has the potential to propel you to the quantitative trading pedestal.
The book contains practical tips that you need to know about quantitative trading. Leafing through the book, it will guide you to:
- Develop your own trading weaponry or strategy you are comfortable using;
- Test your arsenal or developed strategy through various platforms available to test its effectiveness
- Implement your own trading system to use your trading strategy; and
- Adjust your strategies depending on its efficiency
About the Author
Ernest Chan is an experienced algorithmic trader and advisor who has a passion for teaching young and old traders alike in developing and implementing statistical trading strategies. He has experience working as a researcher in various banks such as Morgan Stanley and Credit Suisse.
Table of Contents
Quantitative Trading is a book replete with statistical trading concepts. It has the following chapters:
Chapter 1 The Whats, Whos, and Whys of Quantitative Trading
Who can become a Quantitative Trader?
The Business Case for Quantitative Trading
The Way Forward
Chapter 2 Fishing for Ideas
How To Identify a Strategy That Suits You
A Taste for Plausible Strategies and Their Pitfalls
Chapter 3 Backtesting
Common Backtesting Platforms
Finding and Using Historical Databases
Performance Measurement
Common Backtesting Pitfalls to Avoid
Transaction Costs
Strategy Refinement
Chapter 4 Setting Up Your Business
Business Structure: Retail or Proprietary?
Choosing a Brokerage or Proprietary Trading Firm
Physical Infrastructure
Chapter 5 Execution Systems
What an Automated Trading System Can Do for You
Minimizing Transaction Costs
Testing Your System by Paper Trading
Why Does Actual Performance Diverge from Expectations?
Chapter 6 Money and Risk Management
Optimal Capital Allocation and Leverage
Risk Management
Psychological Preparedness
Chapter 7 Special Topics in Quantitative Trading
Mean-Reverting versus Momentum Strategies
Regime Switching
Stationary and Cointegration
Factor Models
What is Your Exit Strategy?
Seasonal Trading Strategies
Chapter 8 Conclusion: Can Independent Traders Succeed?
