Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis

Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis
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Mechanical Trading Systems examines the development process for choosing and using mechanical trading systems in conjunction with trading psychology. The book discusses the popularity of mechanical trading systems, the dangers in system development and how to avoid them, how backtesting of trading systems aid in position sizing, other risk quantification tools, and methods of improving rates of return on investment without significantly increasing risk. Through a detailed examination of various types of unsuccessful trader personality traits (e.g. fearfulness, greed, impatience, lack of discipline, etc.), the book then recommends how specific kinds of trading systems can reprogram the trader. The goal is to foster a psychological flexibility that will enable traders to succeed in all kinds of trading environments: countertrend, choppy, trending Mechanical Trading Systems marries sophisticated technical analysis with trading psychology theory.

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