The trading market is comprised of institutional traders and independent traders. It is no secret that institutional traders greatly impact and drive market prices. When they put their game on another level by developing algorithmic trading systems, can the independent traders keep up and put up a challenge against the giants?
The answer to that question lies deep in Ernest Chan’s Quantitative Trading. In this book, independent traders will be toured to the path to understanding quantitative trading and how they can build their careers as retail traders or quantitative traders in big firms.
About the Author
Ernest Chan is a certified quantitative trader and an expert who also works as an adviser of institutional and independent traders seeking to improve and implement automated trading strategies. A researcher, writer, and trader, Chan continue to conquer the trading markets trading in the biggest trading firms.
Table of Contents
Quantitative Trading is a book replete with statistical trading concepts. It has the following chapters:
Chapter 1 The Whats, Whos, and Whys of Quantitative Trading
Who can become a Quantitative Trader?
The Business Case for Quantitative Trading
The Way Forward
Chapter 2 Fishing for Ideas
How To Identify a Strategy That Suits You
A Taste for Plausible Strategies and Their Pitfalls
Chapter 3 Backtesting
Common Backtesting Platforms
Finding and Using Historical Databases
Common Backtesting Pitfalls to Avoid
Chapter 4 Setting Up Your Business
Business Structure: Retail or Proprietary?
Choosing a Brokerage or Proprietary Trading Firm
Chapter 5 Execution Systems
What an Automated Trading System Can Do for You
Minimizing Transaction Costs
Testing Your System by Paper Trading
Why Does Actual Performance Diverge from Expectations?
Chapter 6 Money and Risk Management
Optimal Capital Allocation and Leverage
Chapter 7 Special Topics in Quantitative Trading
Mean-Reverting versus Momentum Strategies
Stationary and Cointegration
What is Your Exit Strategy?
Seasonal Trading Strategies
Chapter 8 Conclusion: Can Independent Traders Succeed?