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Apr 30

A Review of “Quantitative Trading: How to Build Your Own Algorithmic Trading Business”

Posted by Bill at 08:25 | Paper Review | Comments(0) | Reads(9770)
This is a review of the book “Quantitative Trading: How to Build Your Own Algorithmic Trading Business”, which is published by Wiley Trading, and written by Dr. Ernest Chan. Dr. Chan is and has been an independent trader, investor, and consultant for many years.

This book covers subjects that would be considered basic to intermediate by most people in this industry. The book itself is more of an instruction manual of how to get started and become profitable in this field. While it does discuss some mathematical formulas, they are not too difficult to follow or implement.

The book goes over many of Dr. Chan’s past experiences as a trader, and lets you know what he has learned from them. He will tell what to do, as well as what not to do, based on his successes and failures.

The book itself does not provide a strict guideline for you to follow with your investments. So if you are looking for an approach that says do (A, B, C, and D) and you will start making money, this is not the book for you. It provides you more of a philosophical approach to investing, that you must think about deeply, to fully appreciate.

It does however discuss different investing strategies that you can investigate further on your own that are centered on Dr. Chan’s expertise, which is, long and short equity strategies. You will learn how to research and accumulate the proper data, how to select the appropriate approach to investing that matches your personality and goals, as well as back-testing, and choosing a good trading platform.

It does not go into as much detail as many of the more experienced investors would like, but it does supply you with some excellent resources that you can investigate on your own if you are seeking this kind of highly advanced knowledge.

If you are interested in building, or improving your home automated trading system, Dr. Chan will point you in the right direction without creating too many unnecessary distractions for you. Maybe the best part of the entire book is his letting you know some of the major mistakes that he made in his investing career, and how you can avoid these costly blunders, without actually losing any of your own money if you follow his advice.

If you are an extremely high level profitable investor, you might not get too much out of the “Quantitative Trading: How to Build Your Own Algorithmic Trading Business”, but you should read it anyway for its intrinsic value. For everybody else that is interested in this industry, it is a must read.


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