Trading With The Odds: Using the Power of Statistics to Profit in the futures Market - Hardcover

Kase, Cynthia

Hardcover

ISBN 10: 155738911X ISBN 13: 9781557389114

Publisher: McGraw-Hill Education, 1996

Synopsis

Every trader will appreciate this reliable, realistic, and systematic approach to trading financial and commodity markets. In a step-by-step manner, the author applies a rigorous mathematical discipline to financial speculation and explains how to analyze markets, forecast price movements, develop trading strategies, and manage trading capital. Kase also unveils several highly sophisticated indicators that are far more precise than conventional technical indicators. Unlike most books on trading, "Trading with the Odds" contains complete coverage of money management, including the author's own "Kase Dev-Stop," a highly calibrated money management tool. "Trading with the Odds" also includes: uses and abuses of conventional technical analysis; and new technical indicators for analyzing markets and entering trades.

About this title

From the Author

A little bit about myself and my book . . .
I began trading in 1983, after ten years as an engineer, working for a major oil company. All my experience as a trader and advisor has been on the corporate and institutional proprietary side, focusing on the energy sector. I currently actively provide trading and hedging advisory services (including my technical trading methods and algorithms) to about 60 energy corporates and banks, carrying over 40 billion dollars in exposure.

Because institutional traders often trade a narrow range of contracts, they can not use diversification to lessen risk. In addition to making money, they must make it in a conservative, risk averse manner. Thus the trading techniques and indicator mathematics they use are more rigorous than those normally proffered to private investors. Managers who hold the purse strings are more comfortable with financial mathematics that make logical sense versus the more empirical techniques common in the public domain.

I reveal in my book the world of the sophisticated, state-of-the-art algorithms that are rarely glimpsed in the domain of the individual investor. Included is a discussion of my work in momentum, for which I won the Market Technicians Association "Best of the Best" award.

If you have a technical bent, accept that real success requires hard work, and seek an understanding of what is really happening on the cutting edge of technical analysis, but is rarely seen in print due to its complex, proprietary nature -- this book is for you.

While I do not provide computer code, I explain how indicators are formulated. Because I am an engineer and use an "engineering" approach, my book assumes an ability to understand basic statistics and mathematics. For example, on pages 96 and 97 I explain that stops are placed at 1, 2 and 3 standard deviations over the mean of the distribution of the true rage of a set of two bars, corrected for skew. The book explains all the underlying factors, such as how statistical distributions work, how to calculate true range and how to correct for skew.

So while those who grasp the meaning of statistical distributions and the other factors involved, will understand the calculations, it is possible that some readers may find some of explanations of the math elusive.

Nevertheless, even if you are not a math whiz, the book will open up a new world of how real, professional traders approach the market, and add a new dimension and margin of advantage to your work.

About the Author

McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide

Edition details

• Publisher: McGraw-Hill Education
• Publication date: 1996
• ISBN 10: 155738911X
• ISBN 13: 9781557389114
• Binding: Hardcover
• Language: English
• Number of pages: 250