Technical Analysis Books that dont shy away from the maths

[aukie]

Hello

Is there any trading books that dont shy away from the mathematics when discussing things like technical analysis, trading systems or risk management??

For example most trading systems books I have seen mention statistics is a usefull tool in analysis but dont give any formulas or detailed discussion.

Basically I want to learn how to build a trading system but from a book that doesn't shy shy away from the maths. If such a book exists.

From the few pages I can view on Amazon, "The New Trading Systems and Methods", by Kauffman is probably the most detailed i've seen ... but i'm not too sure.

Regards
A

 

[Jason101]

If you like stats and you are not afraid of maths. I think one of the best books for you would be Toby Crabel- Day Trading with Short Term Price Patterns and Opening Range Breakout.

It is very heavy reading with pages and pages of statistical analyst.

It is no longer in print and Crabel wished he had never written it, so an original copy sells for just under £1000.

But there is a PDF version if you search long enough on the net.

Jason

 

[the hare]

David Aaronsons Evidence based Technical Analysis is well worth a read. There's not much on system design, but his ideas are useful.

 

[aukie]

The content of both these books is good ... but why are so many trading books so dumbed down!

Take for example the second book, "Evidence based Technical Analysis" clearly the author knows statistics, its clear from his table of contents. But he just dumbs down his explanations, using pictures and diagrams as opposed to a simple formula. Take for example his explanation on the law of large numbers. Now I'm sure most his readers would appreciate this over simplification.

But what about all the engineers, computer scientists, actuaries, quants, accountants, econometricians, mathematicians etc. that have a decent grasp of mathematics and statistics, is there not a book on trading written for this audience in mind??

It seems to me most trading books written avoid formulas, and any kind of mathematical notation and so that they can appeal to the general puclic ... but is there no trading books for people who know maths and statistics??

 

[coopster]

Maybe because maths is not really what trading is all about in my opinion.

Trading is about predicting what the crowd/big players will do next. If they are not using complex formulae to trade, then why would you need to?

Money management is simple accountancy that most people can cope with. That also need not be complex to perform sufficiently.

I sense a bit of "i'm good at maths so trading must be solvable with maths". This to me is not the correct attitude as there are several things in trading that are not quantifyable. Mood, Reaction to news etc.

 

[Shakone]

Wow, I'm getting some severe deja vu here....

Did you ask this same question a few days ago, or was that someone else?

 

[aukie]

Cheers coop, I wish i knew how to move threads, since the response was slow to this thread I thought I posted it in the general section...

http://www.trade2win.com/boards/general-trading-chat/116096-trading-books-dont-shy-away-math.html

 

[timetotrade]

Try Steven Achelis' Technical Analysis from A to Z plus the accompanying A To Z Companion Spreadsheet