New Trading Systems and Methods [With CDROM]

by Perry J. Kaufman

Book Overview

Get the bestselling guide to trading systems, now updated for the 21st century. For more than two decades, futures traders have turned to the classic Trading Systems and Methods for complete... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 047126847x
• ISBN13: 9780471268475
• Release Date: February 2005
• Publisher: Wiley
• Length: 1200 Pages
• Weight: 4.55 lbs.
• Dimensions: 2.0" x 7.3" x 10.0"

Customer Reviews

Useful Book, Outstanding For Tradestation

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.

Best Compilation of Trading Systems

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!

Excellent material in 4th edition

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!

What more could you ask for in a book???

Trading is serious business, although you wouldn't think so, considering the way many people approach it. The fundamental truth about all types of markets is that the minority gets the money, and keeps it. Of course, there will be times where the market trends strongly in one direction (usually up), and the masses confuse a bull market for brains. But those who are serious about earning profits, and keeping them, need to develop a method or philosophy to separate their thoughts and actions to act independently from the crowd. If there were college level courses in financial speculation, Kauffman's book would be the required text. All sorts of twists on trend following, counter trend strategies, technical indicators, statistical methods, as well as various charting techniques, are all described. I should also add, the book comes with a CD that enables you to test various methods described in the book using Excel spreadsheets. The spreadsheets are already set up, you just need to input the data. Some reviewers say that all of the methods are "bad." I'd disagree. This book is a valuable reference, and when you understand the logic of what has come before, you can adapt it to current market conditions. There are a surprisingly large, but finite, number of ways to slice and dice market data. But there are an infinite number of ways to combine a few them into a robust trading system.

Technical Details for the Technical Analyst

Many people refer to the Achelis book for simple, straight-forward descriptions of technical analysis tools. I too have it on my primary bookshelf. However, lately, more often than not, I find myself reaching for Kaufman's book to get good background on the various ways of technically analysing trading options. He has chapters devoted to practically every indicator type you may encounter: chart reading, events, regressions, trending, momentum, oscillators, seasonality, cycles, patterns, multiple time frames, and advanced techniques. He then goes into some details regarding system testing, practical considerations, risk control, and diversification. As a wrap up, he provides some end-notes for the mathematically inclined. There appear to be traders who will sit at their screen all day and watch patterns. I think many who wrote many of the recent reviews may fall into this category, and didnt' rank the book very highly. On the other hand, there are other traders who may wish to design Automated Trading Scenarios and need some math to flesh out their trading strategies. It is for these types of traders to whom this book is devoted. I think you'll find a wealth of ideas you can mix and match to make a trading strategy uniquely your own. However, technical anlysis and automated trading strategy design takes much work and energy. A good chunk of statistics is practically mandatory (which the book doesn't delve into). This book fulfills only a portion of the overall knowledge someone will need build a winning trading strategy. I'll give it two thumbs up as it provides excellent details on the spectrum of technical analysis and provides references for the times you wish to flesh out the details.