How to Develop and Implement a Winning Trading Sytem

In: Business and Management

Submitted By soccerstud2912
Words 19157
Pages 77
Beyond Technical Analysis

Beyond Technical Analysis: How to Develop and Implement a Winning Trading System

Tushar S. Chande, PhD

John Wiley 61 Sons, Inc. New York • Chichester • Brisbane • Toronto • Singapore • Weinheim

This text is printed on acid-free paper. Copyright © 1997 by Tushar S. Chande. Published by John Wiley & Sons, Inc. Data Scrambling is a trademark of Tushar S. Chande. TradeStadon, System Writer Plus, and Power Editor are trademarks of Omega Research, Inc. Excel is a registered trademark of Microsoft Corporation. Continuous Contractor is a trademark of TechTools, Inc. Portfolio Analyzer is a trademark of Tom Berry. All rights reserved. Printed simultaneously in Canada. Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright holder is unlawful. Requests for permission or further information should be addressed to the Permissions Department of John Wiley & Sons. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging in Publicaton Data: Chande, Tushar S., 1958Beyond technical analysis : how to develop & implement a winning trading system / Tushar S. Chande. Includes index. ISBN 0-471-16188-8 (cloth : alk. paper) 1. Investment analysis. I. Tide. II. Series. HG4529.C488 1997 332.6—dc20 96-34436 Printed in the United States of America 10 98765432


Preface xi Acknowledgments

xiii Trading Systems 1

1 Developing and Implementing Introduction 1 The Usual Disclaimer…...

Similar Documents

How Leaders Develop Leaders

...“How am I doing as a leader?” asks Larry Bossidy, CEO of AlliedSignal in a meeting with his operating mangers. “The answer is, how are the people you lead doing? Do they learn? Do they visit customers? Do they manage conflict and initiate change? Are they growing and being promoted? “When you retire, you won’t remember what you did in the first quarter of 1994, or the third. You’ll remember how many people you developed – how many you helped have a better career because of your interest and dedication to their development. When you’re confused about how you’re doing as a leader, find out how the people you lead are doing. You’ll know the answer.” Andy Grove, CEO of Intel: Roger Enrico, CEO of PepsiCo; Jack Welch, CEO of General Electric; and Admiral Ray Smith of the U.S. Special Operations Command agree with Bossidy. All are respected leaders of successful organizations that constantly outthink and outmaneuver their competitors. Though those leaders have been 1 2 instrumental in their companies’ success, they have also built large pools of talent. They have contributed to their organizations’ success by personally developing leaders at all levels. Once upon a time Here’s what you would see if you visited Grove, Enrico, Welch, and Smith leading their businesses. Intel. In Santa Clara, California, Andy Grove is teaching Intel managers how to lead in an industry in which the product (semiconductors) doubles in capacity every 18 months. In Grove’s teaching sessions,......

Words: 9068 - Pages: 37

How to Develop My Country

...lack of effective methods of teaching. For example, many schools in Vietnam now force the students to learn by heart a lot and the test after each semester only test the students' abilities to remember the contents of the textbook. They also don't have chances to practice and experiment. I think a good school is a school with modern equipment and it is where the students are taught how to think, how to learn so they can work more sufficient in the future and that is the reason why I want to build a standard school. A school with modern facilities to support the students during the time they are learning at school and a large library with a plenty of books for them to find out anything they want can encourage them to learn more at their best. One of my friends is now studying in Australia. When she was still in Vietnam, she often got bored with the lessons so she never paid enough attention to the lessons. As a result, her score was really bad. But now, since she moved to Australia to study, she has made a great progress in learning, she always tells me about the interesting subjects at school and how they do research with the help of modern equipment and I think I find her more intelligent in some ways. A standard school like that will receive much more excellent students than other schools. Because every school wants to make their schools better, I think they will invest more in changing the method of teaching and buying enough material for the schools. This leads to the......

Words: 400 - Pages: 2

How to Draft a Perfect Trading Plan

...How To Draft A Perfect Trading Plan This 8-step approach to planning paves the way to profitable stock trading. When it comes to trading stocks, it's not about how hard you work. It's about knowing the right things to do, and putting that knowledge to work. Making money in the stock market isn't so hard when you apply a simple skill essential to converting the power of knowledge into profits ... planning! "Plan Your Trade and Trade Your Plan" is a mantra you should print out and frame for your wall. Why? Because stock traders who carefully plan have a much better chance of making money than those who don't. In fact, the simple act of drafting a plan can significantly increase the odds that your trade will be profitable. A successful trading plan doesn't have to be complicated. Many traders draft their trading plans in a notebook or on index cards, while others use word processors and spreadsheets. Regardless of the method you choose, every trading plan must include certain components to be effective. 1. Choose Your Style Before drafting a plan of action, traders will want to decide what style of trading they prefer. A broad generalization of "buy and sell stocks" doesn't work - the criteria needs to be specific. Successful traders make money in different ways, but each has a well-defined method. On the other hand, a losing trader's plan is always vague and ambiguous. In trading, it pays to be precise, so decide what you like to do and build your plan around that......

Words: 1180 - Pages: 5

Understand How to Implement a Chosen Strategy

...Q 4.2 Identify and evaluate resource requirements you will need to implement a new strategy within your chosen organisation. Definition of resources This means that in business anything everything that can help the business to operate is called resources. The use of human capital, natural resources, tangible resources like property or the machines that produce the product. And the intangible resources are the brand image and the understanding of the business, financial resources and anything else that can make the business profit is called business resources. All business resources have a value. Importance In business it is an asset to have a good manager and the use of the business resources to make a business successful. When a business makes use of all the resources that are available to them and work at a high level it generates more profit than the business who do not use. All business has a value and this is determined by the quality and the quantity of the resources. Human capital Human capital in business is an important resource, the skills and the abilities and the knowledge of the workforce. Staff are capable of turning raw material into products that are valuable, they use the knowledge and the skills to so. Controlled on a daily basis the routine and the operations of the business whether the staff are paid by the hour or commission based this includes the decisions of the managers work and customer services. The company will get its......

Words: 980 - Pages: 4

How to Develop a Research Idea

...• HOW TO DEVELOP A RESEARCH IDEA • An Illustrated case • The Research idea In my research I intent to examine the challenges, strengths and impacts of corporate leadership and governance in reference to W.E.TILLEY GROUP a selected family owned firm in East Africa. My main motivation in this study is … (explain your motivation). Emphasis will be on leadership and corporate governance aspects in the firm. These include but not limited to profits and power sharing methods, leadership styles and challenges, succession plans, decision making on complex issues like mergers, acquisitions, take over’s, loans etc.. Also generational changes in the family and their impacts on growth of the family owned firm. Alignment of principals with their agents and their effects on firm’s performance. Appointment of directorship within the family member vis-a-viz professional or educational qualifications. Do culture, religion and external influences have impact on firm’s performance and growth? • Starting point • Read as much you can about the research area • What is a family owned business? • Why should any one care about them? • What are their characteristics • What challenges do they face and why? • In the first instance, just google, let’s just google our title “Challenges Of Corporate Leadership And Governance In Family Owned Firms” • This give us some ideas, we can also google the questions......

Words: 378 - Pages: 2

Develop and Implement

...recommendations they made. After this meeting, you need to draft an email to the other stakeholders in your organisation, using the headings described below: 1. Existing vision and mission: From the case study information provided, describe the existing mission and vision statements. 2. Current approaches: From the case study information provided, and your meeting with the key stakeholder/consultant, describe the current organisational understanding and enactment of the mission and vision statements. 3. Revised vision and mission: Based on steps 1 and 2 above, develop revised vision and mission statements that reflect the current organisational requirements. 4. Organisational values: Based on the case study information provided, step 2 above, and reflecting on the revised mission/vision statements (from step 3), describe the organisational values required to support the revised mission and vision statements. Develop a draft of an email and submit it to the key stakeholder/consultant for review. When submitting the proposed email and accompanying documents, you need to ensure that: * Your email is titled ‘Mission/Vision review’. * Your report is in order, with attachments (notes from your meeting) at the back of your report. * Your report is submitted as required by your organisation (your training provider). Specifications You must provide: * A completed draft email, as outlined above in steps 1–4, using the headings provided for each......

Words: 1125 - Pages: 5

How to Develop a Plot

...How To Create A Plot Outline I'll describe each of the eight elements in turn. If you already have an idea for a novel you're working on, open your file or get a pad of paper or your writer's notebook. As you read through the rest of this page, jot down ideas for how each element might work in your story. At the end, I'll show you how to use your choices to create a brief, well-rounded plot outline for your novel. If you don't have an idea for a novel yet, just grab one from your imagination. It doesn't have to be good. It's just an exercise after all. On the other hand, if you already have a draft for a novel, that you're looking to revise, then ask yourself, as we go through these elements, whether you have included them in your story. Create a plot outline for your novel in the way suggested below. You may find you can strengthen your novel plot considerably by incorporating any plot element you neglected before. 1. Story Goal The first element to include in your plot outline is the Story Goal, which we covered in detail in the previous article, The Key to a Solid Plot: Choosing a Story Goal. To summarize, the plot of any story is a sequence of events that revolve around an attempt to solve a problem or attain a goal. The Story Goal is, generally speaking, what your protagonist wants to achieve or the problem he/she wants to resolve. It is also the goal/problem that involves or affects most, if not all the other characters in the story. It is “what the......

Words: 1792 - Pages: 8

How to Develop Brands The brand name being well established, the firm will be able to spend less in developing consumer awareness of the brand and associations for the new products. If the original brand has a strong acceptance from consumer, the perception will translate to other products. When used for complementary products, an increase in overall sales is experienced since a synergy exists between the two products. Kellogg’s had to branch out from a company it was of cereals. It is through using this this strategy this strategy of branding those corporate names into names of actual products that make it possible for the company to introduce new products in a way that is very convenient since it is quick and easy. This process helps the company to develop awareness to their brands for the new product. Frilo-lay markets their chips and dips under several categories of brand names. When people tend to buy a certain product like chips, they might consider buying the dips as well since a certain synergy would exist between certain products that would increase sales. This occurs when brand extensions are used for complementary products. Decision to go back to Miller’s original packaging is a good idea. However, not all brand extensions are successful. There are several factors that ought to be considered in making the act of brand extensions successful. Marketers need to very much evaluate the fit between the product class of the core brand and that of brand extensions. Consumers......

Words: 1242 - Pages: 5

Develop and Implement Diversity Policy

...Develop and Implement Diversity Policy BSBDIV601A Q-1 List a number of benefit that diversity policy can bring to an organisation. How do these relate specifically to business objectives? A - A more diverse workforce... will increase organisational effectiveness. It will lift morale, bring greater access to new segments of the marketplace and enhance productivity. In short... diversity will be good for business. Diverse workplaces make good business sense for an organisation. A diverse workforce increases the opportunity to bring various perspectives to identifying and solving problems—a set of perspectives that more likely represent broader community views. Some of the benefits of diversity in business objective: - Increased innovation A diverse workforce means a broad range of perspectives, ideas and insights, not only in policy development and implementation, but in defining the policy challenge at the outset. - Improved service to our clients A workforce that reflects the diversity of the community it serves understands the needs of its clients better, enabling more efficient and responsive policy and service delivery outcomes. - Modelling what we promote The organisation has a role in promoting principles of equity and diversity in the Australian economy and community. Q-2 In your research you have accessed diversity policies from a number of other organisations. What did you learn from this and how relevant was the information gathered? A – 2 Adopting...

Words: 1267 - Pages: 6

How a Child Develops in the Womb

...How a child develops in the womb. From the moment of conception, rapid cellular division begins and initiates the start of a child's development in the womb. The developing embryo will go through many changes. From the development of organs and bones to eyes, ears, and tiny feet and hands, what once was an egg and sperm will become a child. Fertilization A sperm must locate the mature egg in the fallopian tube. Once the sperm fertilizes the egg, the egg, which is now a blastocyst, will continue to move down the fallopian tube into the uterus. On or about the seventh day, the blastocyst develops chorionic villi, hairlike structures used to absorb nutrients for the growth of the embryo, which enable it to implant into the lining of the uterine wall. According to Biology of Reproduction, the chorionic villi in the placenta function as necessary structures in exchanges between the fetus and mother. Blastocyst The blastocyst will develop into two separate parts. The outer cells develop into the placenta. According to What to Expect, the placenta carries nutrients and oxygen to and waste materials away from the fetus. The inner cells of the blastocyst will form into the embryo. The amniotic sac will form an inner layer of membranes that will fill with amniotic fluids, which will protect the developing embryo for the remainder of the pregnancy. Embryonic The embryonic stage of development is characterized by the formation of the external body structures and internal organs....

Words: 474 - Pages: 2

How to Develop a Research Strategy

...How To Develop A Research Strategy Gen/200 Date Instructor How To Develop A Research Strategy In this paper I have identified a problem I face in my day-to-day life, which is time management. I will discuss how to develop a research strategy to find a solution to my time management problem and include what information should be gathered, where the information can be obtained, how I evaluate the information that I gather, and explain how I will use the information to resolve the problem. Briefly Describe Problem One big problem I notice in my day-to-day life is the feeling like there isn’t enough time in the day to accomplish all the things I want to finish. At least not without some short cuts, or not giving a task the full attention it requires. On top of my already busy schedule, I decided to go back to school. This means managing my time properly is going to have to be priority number one. A lot of times, for me, time management means to just do less during a day or whatever the span of time is. Sometimes just doing less isn’t an option, for those times, it is going to be good to know other strategies to help me make more effective use of my time. Identify What Type of Information To Gather In order to find ways for me to improve my time management skills I need to gather information such as research and studies that have been done to help university students. For even more specific information I can search for articles, peer-reviewed papers...

Words: 965 - Pages: 4

Bsbmgt616A Develop and Implement Strategic Plans

...DEVELOP & IMPLEMENT STRATEGIC PLAN DEVELOP & IMPLEMENT STRATEGIC PLAN Introduction: The purpose of strategic or long-range planning is to assist the Association in establishing priorities and to better serve the needs of the membership. A strategic plan must be flexible and practical and yet serve as a guide to implementing programs, evaluating how these programs are doing, and making adjustments when necessary. A strategic plan must reflect the thoughts, feelings, ideas, and wants of the developers and mold them along with the Association's purpose, mission, and regulations into an integrated document. The development of a plan requires much probing, discussion, and examination of the views of the leaders who are responsible for the plan's preparation. However, more often than not, the development of the plan is less complicated than is the implementation. Implementation, in essence, pulls a plan apart and diffuses it throughout an organization. Every unit within the organization which is involved must then accept the plan, agree to its direction, and implement specific actions. In order to effectively and efficiently implement a plan, all individuals involved in its implementation must function as a whole or the plan is destined for failure. [pic] Part A A DEFINITION OF STRATEGIC PLANNING Strategic planning is a tool for organizing the present on the basis of the projections of the desired future. That......

Words: 2479 - Pages: 10

How T Develop Tams

...performance review this is when a manger reviews how you are on the job to see if putting you in that position suits you well or even having you at the company. This could result in a change of position. Reduction of Alienation – Feeling you do not belong or are not part of something, this usually happens with large organisations but teams break it down into friendly components. This is a great way to make new friends and it helps motivate you because you will be working with friends. Fostering Innovation – Feeling empowered to be creative and other members are enthusiastic about your exciting new ideas making you feel that your input is important and you are making contributions. Sharing Experience and Expertise – Everyone can contribute ideas through discussion and brainstorming for example if you are a new worker and want to learn more about the business and the types of customers they have ask team leader or manager as they would have the experience and give you advice. Implement Changes – Introducing change in a team involves discussion leading to a greater sense of ownership of the change, it also means that other members of your team respect you as they have decided to go along with those changes that you implemented. Identifying and Developing Talent – Effective teams have people with different skills and abilities, a role of leader is to recruit people with a range of different skills and they can contribute to the team and develop with more training. 3.2......

Words: 1989 - Pages: 8

How to Develop

...expected of them when it comes to respecting clients.   Dear Miss Jenkins, First off I want to start off saying, thank you Miss Jenkins for being my current mental health provider. My family has convinced me to seek treatment again, because I have given up recently. Few weeks ago, I felt the connection I have established with my previous mental health provider had deteriorated. My mood swings are already changing rapidly but it gotten worse. Stressful situations I cannot cope well in and begin to lash out at the one’s I love. I even almost overdosed wanting to feel numb to my emotions, and fear of abandonment. The first way my previous mental health provider mistreated me was by judging. I would talk about my mood swings, how sensitive I was, and how I was ashamed to be on medication. My previous health provider I referred to as Mr. Smith, and he would show facial expressions of disgust. Also one time, I mentioned I may have been experiencing hearing voices, and he replied “your one of craziest patients I met”. That made me feel so unhuman, I went home and tried to overdose consuming pills because I did not want to live anymore. Secondly I felt disrespected because Mr. Smith told one of his friend’s about our sessions, not realizing I knew his friend. It made me lose trust in mental health treatment because my business was not being kept private. I developed anxiety and depression deeper which resulted in me being in and out of the hospital. This triggered a memory of......

Words: 734 - Pages: 3

How to Develop Effective Communication

...HOW TO DEVELOP EFFECTIVE COMMUNICATION SKILLS Everywhere we go, there is always communcation. This communiction explosion has led to one of the most incredible tools, the internet. It allows us to communicate with people all around the world. But despite all our high tech means of communication, effective communication still comes down to people understanding each other, developing skills in order to compete in this worldwide market place. This much needed skills include, building trust, communicating verbally and non-verbally, listening better and dealing with conflict in the work place. One of the keys to succesful communication is trust. Being succesful largely depends on gaining trust from other people. If you dont have trust of other people, they cant count on you. Therefore, it is good to build trust, if you feel you haven’t built trust among people, there are ways you can gain trust. One of them is being supportive when someone is in need of support, it wil gain you trust if support is honest. Also, displaying concern for others is another good way to gain trust, it shows that you care and people will always have that back in their mind whenever they think of you or encouter you unless that is broken. Another way is recognition for initiative, appreciate what people do for you or for others, show that you appreciate them for that. You can also give fedback or honest opinions to people, this shows them that you will not let them go down in......

Words: 2220 - Pages: 9

Pumper Pups | Click here to see more of Kevin's predictions | Vedi Prodotto