Product Description
A framework for creating volatility-based technical analysis and trading it for profit Volatility-Based Technical Analysis bridges the advantage gap between resource rich institutions and individual traders. It is a no-calculus, plain-English text that reveals original, highly technical, mathematical-based volatility indicators, complete with MetaStock® and TradeStation® code. With this in hand, any trader can “trade the invisible” by seeing a hidden mathematic… More >>
Volatility-Based Technical Analysis, Companion Web site: Strategies for Trading the Invisible
There are a lot of books on technical analysis but this book is different. The author does not waste the readers time repeating Technical Analysis 101 but explains some interesting concepts on how to build indicators based on volatility that I haven’t read elsewhere. There are enough interesting ideas in here for technical traders. — “Momentum hides in the movement of implied volatility” (page 284)
Rating: 4 / 5
After reading this book and previous reviews, I felt compelled to write my very first review on Amazon. I have read over 20+ technical analysis books (from Wilder to Mcmillan to Elder to Van Tharp etc). This book is very much different than your typical traditional indicators (in fact there is a great chapter on why traditional indicators do not work in today’s environment). The basis for the “new” indicators defined in this book are based on volatility algorithms which the author has developed over time. The book absolutely provides the formulas for these new indicators AND provides a web page to download them (password in book). Obviouusly the indicators need to be applied to either Metastock or TradeStation, so an additional investment is required (if you currently don’t own any of the above). The book is an easy read and the author gives plenty of analogies to help the novice reader along.
Rating: 5 / 5
Even apart from the meticulously-prepared technical content, this book has a very enjoyable style and use of language and an interesting theme regarding how non-quant readers can still plausibly gain an advantage using Metastock or Tradestation or a similar package if they are prepared to roll up their sleeves and develop some code.
With so many financial trading books these days being little more than reprints of computer programs and charts, it is enjoyable to read one that propounds a novel general thesis – that you need to develop an orthogonal view of the markets that is based on your own indicators that are different from those used by everyone else. This book looks for volatility-based indicators but other types could be used too.
I suspect that anyone who really learns and heeds that lesson has excellent prospects for success.
Kirk’s discipline, precision, and sense of purpose also shine through and are worth emulating.
For those themes alone, this book is valuable.
Whether or not the detailed models that are provided by the book, with code, would work well, I myself cannot tell, but they do at least serve as an interesting example of the overall kind of framework you would need for your own system.
(Disclosure: I received a review copy in connection with a user group)
Rating: 4 / 5
this is a pretentious product that purports to “predict” price movement on the basis of volatility. No formulas are provided for the graphic lines and alerts that populate confusing graphs. Even more interesting still is the LACK of use of implied option volatility for front and back months to graph these lines. No references about or discussion of probability of profit using the indicators is made. This book tries to support a BLACK BOX trading method that is an expensive add on for Metastock. There are several problems with this add on. The most important being Metastock CANNOT graph Ichimoku Kinko Hyo(IKH)
indicators which would make it highly unlikely that it could graph “forward looking bands” that are even more complex than IKH.
A bigger red flag is the lack of discussion of historical volatility and the many ways it can be calculated. Historical volatility is apparently the only thing this program can calculate, since Metastock does not query option chains.
IN SHORT: THE BOOK IS AN EXPENSIVE ADVERTISEMENT FOR A BLACK BOX ‘VOLATILITY’ INDICATOR SYSTEM OF TRADING WHICH IS EVEN MORE EXPENSIVE, THAT WILL REQUIRE CLASSES WHICH ARE EVEN MORE EXPENSIVE.
MY ADVISE IS TO EXAMINE THE AUDITED TRADING ACCOUNTS OF THE AUTHOR OVER THE LAST 3 YEARS TO SEE HOW MUCH HE MADE USING THE SYSTEM. ALSO HAS HE PUBLISHED ANY ARTICLES IN WILMOTT’S OR PEER REVIEWED ARTICLES IN THE JOURNAL OF POLITICAL ECONOMY
Rating: 1 / 5