"This is a great book to get a much better understandingof what in really involved in system development and help on yourjourney from someone with a lot of real-life trading experience. For those already working with systems, it may challenge some ofthe approaches you use and help you to become a better systemdeveloper and trader. From my perspective, the chance to look overKevin's shoulder and see the concepts and full code from somesystems he has been using in his own trading alone would be of farmore value than the cost of the book.„
--Tim Rea, Proprietary systems developer/trader; 1st placewinner, World Cup Championship of Futures Trading®2011
“Part Reminiscences of a Stock Operator and partMarket Wizards, Kevin Davey has written a superb book forthe modern trader. Not only does Kevin provide a step-by-step planon how to develop algorithmic trading strategies but he actuallyreveals the strategy he used to win The World Cup Championship OfFutures Trading® along with two additional euro currencysystems. I have no doubt this will become a popular and oftenreferenced book amongst traders. Readers will find Kevin'shumble and engaging voice easy to follow and grasp. They will alsofind his personal journey from aerospace engineer to beginnertrader, to a championship winning trader and finally to a full timeprofessional trader insightful, entertaining, and inspiring. Wileyshould also be congratulated for recruiting a real trader whotrades real markets with real money to write a trading book forpeople aspiring to become real traders. I highly recommend thisbook to anyone who is serious about developing a successful andsustainable trading career.„
--Brent Penfold, professional trader and author of TheUniversal Principles of Successful Trading (Wiley 2010)
“Few trading books on the market today are written bythose who actually make their living from trading and those thatare frequently suffer from being unintelligible to the layman. Kevin Davey has the authenticity of a real trader and the abilityto distill complex ideas into a format that is easy to read and, attimes, brutally honest. For those aspiring to trading success, Kevin gives a step by step guide on how to approach systemsdevelopment as well as outlining many of the pitfalls to avoid andthroughout the book he provides a wealth of information and toolsthat will prove invaluable to novice or expert alike.„
--Michael Cook, Founder, Katmai Capital Advisors; World CupChampionship of Futures Trading® 2007
“Of all the trading books that I've read, this booktakes the cake. Kevin Davey brings us a realistic perspective in anindustry full of dreamers. I suggest that all traders drop whatthey're doing and read the incredibly valuable lessons summedup in this book. This book is the quickest path for a newtrader to stop dreaming and start succeeding."
--Peter Hagen, Citracado Capital, LLC
Building Algorithmic Trading Systems
A Trader's Journey From Data Mining to Monte Carlo Simulation to Live Trading
von Kevin DaveyIn Building Algorithmic Trading Systems: A Trader's JourneyFrom Data Mining to Monte Carlo Simulation to Live Training, award-winning trader Kevin Davey shares his secrets for developingtrading systems that generate triple-digit returns. With bothexplanation and demonstration, Davey guides you step-by-stepthrough the entire process of generating and validating an idea, setting entry and exit points, testing systems, and implementingthem in live trading. You'll find concrete rules for increasing ordecreasing allocation to a system, and rules for when to abandonone. The companion website includes Davey's own Monte Carlosimulator and other tools that will enable you to automate and testyour own trading ideas.
A purely discretionary approach to trading generally breaks downover the long haul. With market data and statistics easilyavailable, traders are increasingly opting to employ an automatedor algorithmic trading system--enough that algorithmic tradesnow account for the bulk of stock trading volume. BuildingAlgorithmic Trading Systems teaches you how to develop your ownsystems with an eye toward market fluctuations and the impermanenceof even the most effective algorithm.
* Learn the systems that generated triple-digit returns in theWorld Cup Trading Championship
* Develop an algorithmic approach for any trading idea usingoff-the-shelf software or popular platforms
* Test your new system using historical and current marketdata
* Mine market data for statistical tendencies that may form thebasis of a new system
Market patterns change, and so do system results. Pastperformance isn't a guarantee of future success, so the key is tocontinually develop new systems and adjust established systems inresponse to evolving statistical tendencies. For individual traderslooking for the next leap forward, Building Algorithmic TradingSystems provides expert guidance and practical advice.
