Best Books For Creating Trading Strategies

If you are the type of person, who wants to create their own trading strategy but doesn’t know where to start, I’ve put together this short list of the best books for creating trading strategies. I studied many books before I was able to develop my own profitable trading strategy. For someone starting out I would recommend reading at least one of the following three:

Trading Systems And Methods

Trading Systems And Methods is more than just an encyclopedia of contemporary quantitative techniques and programs. It is also a handy primer, providing you with the knowledge and skills you need to choose or design a system perfectly suited to your trading style and goals.

The Fifth Edition is fully revised with detailed information on indicators, programs, algorithms, and systems for today’s markets.

I give this book my top rating, not because it’s the most expensive of the three, but because of the sheer volume of information. 1,232 pages covers nearly all areas, including trends, momentum, arbitrage, integration of fundamental statistics, and risk management. Trading Systems And Methods describes each technique and how it can be used to a trader’s advantage, and shows similarities and variations that may serve as valuable alternatives.

This is the must-have reference book if you are serious about creating robust and profitable trading strategies.

“I think having the website material and being able to work with the programs yourself is crucial aspect for this book.”

“If you are interested in Technical Analysis and how it combines to form a system of trading this book will be worth your money.”

“Many of the trading systems that it talks about are laid out in easy language (the way to input into Tradestation).”

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Creating Successful Algorithmic Trading Strategies

In this 177 page book, the author provides a viable approach and with tools that anyone can use to develop a successful trading strategy.

Creating Successful Algorithmic Trading Strategies was written by the same author as the first book I reviewed. This book is not as comprehensive but represents the other side of the coin: a short and quickly readable book that deals with the most important issue to develop a successful trading system. It is important to note that this book is not a summary of the previous book, but full of new material.

“The author provides the exact guidelines for building a reliable trading system, as well as illustrating a strategy with back-tests “

“Kaufman provides a viable approach and with tools that anyone can use to develop a successful trading strategy if they are serious, disciplined and can follow rules.”

“If you are a newbie in this area, you probably will think it’s too high level. But if you have some experience around trading, you will find this is a book you must have.”

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High Probability Trading Strategies

High Probability Trading Strategies details a practical approach to analyzing market behavior, identifying profitable trade setups, and executing and managing trades—from entry to exit.

The author is intense which is why I’ve put this lower on my list of best books for creating trading strategies. This book was written with the serious trader in mind. You’ll definitely need an understanding of the basics in technical analysis.

As is usual with a lot of books nowadays, a companion website has additional materials and examples. There is also a full chapter in the book is devoted to examples from students.

“I have invested over $50,000 in seminars, books, home study courses, software & personal trading coaches and this book is better than ANYTHING that is out there.”

If you have just a little bit of background in the fundamentals of trading, you’ll find this book to be all you need to set up a successful trading practice.

Robert gives you specific steps to follow with numerous examples to drive the theory and implementation home. You will not find better training at any price

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That wraps up this overview of some of the best books for creating trading strategies. Because of it’s comprehensive amount of material, because it’s good for beginners as well as experienced traders, I recommend Trading Systems And Methods as your go-to reference material. Over time I would add the other two to your trading library for further insight of profitable signals and trading strategies.

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