Beat the Market with a Provable Trading System at Low Risk
Publisher: Lulu Press
Published: 2009
Place of publication: Miami,USA
Format: Paperback
Number of pages: 112
ISBN-13: 9780557120017
Table of contents: title: CONTENTS; title: Part 1:  ANALYSIS; title: 1  ANALYSIS OF THE OPTIONS MARKET                            2; title: 1.1  Advantages of Options                                                            2; title: 1.2  What is an Option Contract                                                     3; title: 1.3  Basic Options Trading Concepts and Terms                         3; title: 1.3.1  The Option Writer,  4; title: 1.3.2  The Option Buyer,  5; title: 1.3.3  The Options Clearing Corporation,  5; title: 1.4  Features of Options                                                                 6; title: 1.4.1  Price of the Option,  7; title: 1.4.2  The Relevance of Volatility,  9; title: 1.5  The “Greeks”                                                                            9; title: 1.5.1  Delta,  9; title: 1.5.2  Theta,  11; title: 1.5.3  Gamma, Vega, and Rho.  11; title: 1.6  Skew Between Equidistant Calls and Puts                           11; title: 1.7  The Underlying Security                                                         13; title: 1.8  Complex Hedged Options Positions			           14; title: 1.8.1  Spreads,  14; title: 1.8.2  Straddles, Strangles, and Condors,  16; title: 1.8.3  Other Hedged Positions,  17; title: 1.9  How To Get More Information About Options Trading         17; title: 2  TECHNICAL  ANALYSIS OF STOCK TRENDS                   19; title: 2.1  Definition of Technical Analysis                                              19; title: 2.2  Technical Features of our Underlying Stock                          20; title: 2.3  Definition of a Trend                                                                  21; title: 2.3.1  Our Trend Classification,  21; title: 2.3.2  How to Draw a Trendline,  22; title: 2.3.3  How to Identify Trend Reversals,  22; title: 2.4  The Most Common Technical Chart Patterns                         24; title: 2.4.1  Resistance and Support Levels,  24; title: 2.4.2  Continuation and Reversal Patterns,  24; title: vi; title: CONTENTS                                                                                                                vii; title: 2.4.3  Trend Reversal Patterns,  26; title: 2.4.4  Choppy Markets,  27; title: 2.4.5  Where to Find Charts,  27; title: 2.5  Seasonal Tendencies in the Stock Market                            27; title: 2.6  Technical Trading Systems                                                    29; title: 2.6.1  Trend Following Systems,  29; title: 2.6.2  Breakout Systems,  30; title: 2.6.3  Channel Resistance and Support Schemes,  30; title: 2.6.4  Other Technical Systems, 30; title: 2.7  Our Trend Following Reversal System                                 32; title: 2.8  Can Technical Analysis Predict the Future of the Market? 33; title: 2.9  Final Comments                                                                       34; title: 3  CYBERNETIC APPROACH TO STOCK MARKET; title: ANALYSIS                                                                            35; title: 3.1  Introduction                                                                                35; title: 3.2  The Relevance of Cybernetic Disciplines to the Design; title: of Trading Systems                                                                  35; title: 3.3  Implications of the Law of Requisite Variety for the; title: Design of Trading Systems                                                      37; title: 3.4  Human Information Processing Limitations in; title: Decision Making                                                                        38; title: 3.5  The Usefulness of Artificial Intelligence                                  38; title: 3.5.1  Our POTS is a Knowledge Based System,  39; title: 3.5.2  How POTS Performance May be Improved through; title: Machine Learning,  39; title: 3.6  We may Ultimately Implement Our POTS as an; title: Expert System                                                                           41; title: Part 2:  DESIGN; title: 4  CONCEPTUAL AND GENERAL DESIGN                             43; title: 4.1  The Three Pillars of Our POTS                                                  43; title: 4.1.1  The State-Subsystem Mapping,  43; title: 4.1.2  The Growth Position,  44; title: 4.1.3  Continually Follow the Current Trend,  44; title: viii                                                                                                                CONTENTS; title: 4.2  The Concept of State                                                                 44; title: 4.2.1  State of the Market,  44; title: 4.2.2  State of Our Portfolio,  45; title: 4.2.3  State Continuation Principle,  45; title: 4.3  Hierarchical Structure of Our POTS                                         45; title: 4.3.1  Main Control Subsystem,  47; title: 4.3.2  Main Trading Subsystems,  47; title: 4.4  The Game of Chess is a Good Model of our POTS                 47; title: 4.5  General POTS Trading Procedure                                            48; title: 4.6  Proof that POTS Beats the Market                                            49; title: 5  DETAILED DESIGN                                                                51; title: 5.1  The Concept of a Frame                                                             51; title: 5.1.1  The GroP Frame, 51; title: 5.1.2  Trend-Following Frames,  53; title: 5.1.3  Comparative Analysis of our Frames,  53; title: 5.2  Our Trading Subsystems                                                           53; title: 5.2.1  The Main Subsystem,  54; title: 5.2.2  Trend Following Subsystems, 54; title: 5.2.2.1  Fast Trend-Following Subsystems, 55; title: 5.2.2.2  Slow Trend-Following Subsystems, 56; title: 5.2.3  Subsystem for Choppy and Trendless Markets,  56; title: 5.2.4  Safe Income Growth System,  58; title: 5.3  How to Automate the SSMap                                                     58; title: 5.4  POTS Trading Stratagems                                                         59; title: 5.5  How to Roll Into Next Expiry Month                                          60; title: 5.6  Maximize POTS Optimization                                                    60; title: 5.7  Risk Control                                                                                61; title: Part 3:  IMPLEMENTATION; title: 6  HOW TO BUILD OUR TRADING PLATFORM                      63; title: 6.1  How to Select the Platform’s Components                              63; title: 6.1.1  Relevant Aspects of Computer Networking,  63; title: 6.1.2  How to Get the Computer Hardware System,  64; title: 6.1.2.1  Finding a Modem,  64; title: 6.1.3  Computer Operating Systems,  65; title: 6.1.4  Connecting to the Internet,  65; title: 6.1.5  Finding Trading Software,  66; title: CONTENTS                                                                                                                ix; title: 6.2  Selecting a Broker                                                                   66; title: 6.3  System Security                                                                       67; title: 6.4  How to Backup Your Trading Platform                                  67; title: 6.5  Direct Access Trading                                                             68; title: 6.6  Our Trading Platform                                                               68; title: 7  THE INTERACTIVE  BROKERS  TRADER; title: WORKSTATIONSM                                                               70; title: 7.1  Introduction                                                                               70; title: 7.2  Get Started                                                                                 70; title: 7.3  The Trading Window                                                                 71; title: 7.3.1  Using the Trading Window,  72; title: 7.4  Monitoring Your Account                                                         73; title: 7.5  Risk Analytics                                                                            73; title: 7.6  Technical Analytics                                                                   75; title: 7.7  Other Features of the IB TWSSM                                               75; title: 7.8  How to Get More Information About the IB TWSSM                76; title: Part 4:  OPERATION; title: 8  HOW TO MAKE A TRADING PLAN; title: 8.1  Introduction	                                                                             78; title: 8.2  How to Make a Trading Plan                                                     78; title: 8.3  Planning Stratagems                                                                 79; title: 9  A TRADING EXAMPLE                                                          82; title: 9.1  Introduction                                                                                82; title: 9.2  Our Position Map                                                                       82; title: 9.3  Our Trading Example                                                                 84; title: All service marks are the property of Interactive Brokers LLC; title: x                                                                                                                   CONTENTS; title: Part 5:  MAINTENANCE; title: 10  MAINTENANCE OF POTS                                                  93; title: 10.1  Measuring POTS Performance                                               93; title: 10.2  Improving POTS Performance                                                94; title: 10.3  Suggestions for Further Research                                         94; title: GLOSSARY AND INDEX                                                           96