Introduction Chapter 1.

This article discusses the pros and disadvantages of system trading compared to discretionary trade. Systems There are some unique advantages. They are able to avoid the psychological and stress issues that can plague discretionary traders. Additionally, they can use techniques that are too difficult for humans to learn and can be leveraged to make small accounts very large. They can do it all without human interaction. This makes them great for people with other priorities than staring at price charts.

Chapter 2: System Report Explained

You can tell if a trading system is good or bad by how it performs in the future. You will learn the basics of evaluating a system. This chapter also includes practical experience with these methods. We will discuss and dissect good (and not so good) systems. The book will show you how systems work forward.

Chapter 3: William Tell Bonds

This system was created in 1997 and is still being used in active ways. Earik’s personal accounts, but also in the accounts of his partners when he worked at the Board of Trade. This system was active traded in the years it existed. crushed With an accuracy rate of 90%, the Bond market. While it’s an old system, Bond futures have evolved significantly in the last 16 year, the core ideas behind the method remain valid. If accuracy is your cup, you will struggle to find any other system that can compare to this.

To give you a taste, here’s the system report from just one of the nineteen individual patterns that go into this method:

Note the exact number. The accuracy number is 91%. The worst losing streak was a series of two consecutive losses. This system report was run from 1990 to 2013, and the pattern continues to produce as much live data over the past 16 years.

All systems can be made to be extremely accurate, and after reading through the William Tell chapter, you’ll know exactly how to build 70%, 80%, and even 90% accurate systems. These methods are universal so even if you have an existing system, you may be able to transform it into hyper.-It is also accurate, with a few modifications to the way that you enter or exit trades.

Chapter 4: The Fallacy in Optimization

In this chapter, we’ll take a look at parameter migrationA situation where an optimized parameter set fails to work one year and works the next. This market phenomenon is what makes it so many systems sold in the backs of trading magazines do not make any money when they are traded live. If you’ve ever purchased one of those methods, you know what I’m talking about!

Not only will we cover what the issues are that cause parameter migration, but we’ll also discuss the solution. To prove that our solution works, we’ll actually build a system that makes simple moving average crossovers profitable! Yes, you can move average crossovers can Traded in Out: You can make money.-Of-sample data, but Only It is possible to solve parameter migration. Understanding this core concept will save your time and enable you to create highly reliable systems that are not susceptible to being hampered by unseen data.

Chapter 5: Mean reversion Systems

When implemented correctly, mean reversion systems can be a class system that is extremely reliable and profitable. These systems are very simple to design once the core concept is understood. This one is from the book and can be run in just two lines of programming.

Sure, it’s a little wild, but it also made almost $750,000 hypothetically trading one contract of the SP! You can think of this as the raw edge. This can be taken further. This is covered in the next chapters. If you’re looking for ideas to build your own systems, this book is a good place to start. The chart shows that the system in the chart is over 12 years old and still works as well as it did when it was built. These techniques don’t lose their effectiveness over time, which is why we like them.

Chapter 6: Targets, Losses and Other Ways to Lose Money

This chapter debunks some myths. Add dollar to your mechanical system is one of the worst things you could do.-It can be used to target and stop at it. This mistake is made daily by novice traders and system developers. There are better ways to protect your accounts against losses and better strategies to use when trading. This is also true for discretionary traders. You may not realize it, but the very tools you are using to protect yourself against losses may in fact also be the reason why your trading isn’t generating any profits. Stops and targets are real. Learn more about them and then start to use the strategies that generate profits, not losses.

Chapter 7: Lunar System

Many people in Wave59 may be familiar with Earik’s Lunar System, first presented at the 2011 PowerUser Conference. This chapter discusses Spherical Astrology. It is a new method to identify planetary aspects. Wave59 also has functions that enable this technology to be used in trading systems. Spherical Astrology is not like other astrology. We can backtest it and show that it does indeed provide a timing edge. Which kind of edge is it? Take a look at the chart below.

If you’ve ever thought that the Moon and Sun might have some impact on markets, that equity curve proves that you were correct. This chapter will walk you through the process of building an astrosystem from scratch, from the theoretical concepts behind Spherical Astrology to the implementation and fine-tuning the Dow approach.

For those already familiar with this system (or already trading a version of it), you’ll be interested in some of the work done on Venus, which provides a starting point for developing something even more powerful than the core Lunar system.

Chapter 8: Machine Learning

This chapter examines machine learning algorithms that Wave59 offers, both on the PRO2 platform as well as the PRO3 platform. This chapter will provide an overview of these technologies and also allow us to evaluate real systems created using Hives or the new Genetic Algorithm softwarekit.

After Earik The release was Unified Theory of Markets Over a year ago, he began intense development work that resulted in an artificial research assistant. Your assistant can give you a range of system and idea ideas and, using artificial intelligence (and machine learning), you can create very effective trading systems. These leaps are extremely effective. The chart below shows an ES trading platform that was created using this technology.

This approach generated almost $200k in trading for one contract of the ES between 2000 and 2000. It has won more than 60% of its trades. What is it using? UltraSmooth Momentum is one of the core technical indicators used in Wave59. I’m sure many people are familiar with this indicator, but I doubt many would have been able to use it as skillfully as our machine learning program did. You don’t need to learn how to read this indicator any more. Just let the system do it.

This chapter discusses four machine learning systems, two of which were created with Hive Technology and the other two that were developed with PRO3. Wave59’s most recent editions can use all four of these systems.

Chapter 9: Random Numbers

Some exit approaches, like most dollar-Base stops can take a great system and make it a losing system. Other people can make a system that is mediocre into a rock star. This chapter focuses on one of our most powerful exit approaches, which actually works. Completely random Entry signals

Below is the equity curve:

This graph is straight out of the book and shows what would have occurred to a theoretical accounts if it had purchased and sold every single bar of the ES and implemented this exit strategy in all of those trades. In other words, it is the result from taking Every possible trade This exit method has been available in the ES for over a decade. Because we track both buying- and selling every bar, timing and trend cancel each other out. All that is left is how we manage those trades.

This test has the practical result that the exit method can be used independently of the trade entry signal. You can make an attractive system by FLIPPING a COIN for your trades. Seriously. Combine this with an entry signal that actually has a real timing edge, and you’ll have something special.

Chapter 10: Merged Systems

This chapter will discuss a technique for creating an adaptive approach that uses multiple systems together. Two systems can work together to generate more profit with less risk by allowing one system’s strengths to be countered by another. This approach is extremely drawdown-resistant and robust enough not to be affected by parameter migration or curves if done correctly.-fitting, and a host other problems that plague lesser system.

We can combine all the previous chapters to create a base system with an extremely smooth equity curve, as shown below. The system generates $13k annually per ES contract, on average, with more than 60% accuracy and very low drawdown. It also has high reliability. If you do nothing else but read this chapter and implement this system, you’ll have an awesome ES method.

Chapter 11: Position Sizing

To complete a trade we need to know when to enter, exit and how much. Most retail traders only focus their efforts on the entry. Random exits proved that we could make money even without an entry signal. This chapter explains how to create a profitable system and turn it into a millionaire. There are many approaches to sizing positions in the industry. This chapter will show you how to use them all. Earik He shares the formula he uses, which is a modified formula that allows for extremely rapid account growth and keeps drawdowns to a minimum.

This equity curve comes from the exact same system as before. We have however implemented position sizing. It generated nearly $200 million in profits if you give the first system just one contract for 13 years. The second system generated $200 million in profits by combining 13 years and one contract. Million. Similar signals, same amount effort, same starting account. If you’re serious about trading, you should. Must Place sizing should be done in a way that is easy to understand.

Chapter 12: Optional

This chapter continues the work of the previous. It explains how to use options, rather than stock purchases, to increase your stock’s leverage.-Trading system based on futures. Futures trading is possible with high leverage. However, the account size required to trade futures can often be quite large for novice traders. Options contracts, on the other hand can be purchased for a few hundred dollars and offer a way of achieving similar leverage with a fraction the account size.

Trading is a risky business. You can lose your entire account if you don’t have a solid stock system and just buy as many options you can to make a fixed amount of your account. Even though your system may be theoretically profitable. Based on a Wave59 technique, this chapter will show you how to size options trades. Simply enter your account size, various options pricing numbers and your trading signal. It will tell you how many options contracts it should buy at which strike price, so that you maximize your results.

This chart shows the results of this approach over the past two years. The blue line represents a stock trading strategy (for the SPY) and shows what would have occurred if maximum margin trading was used with a $20k account. This shows that 150% of the profits were earned in just two years. That’s a remarkable result. The red line represents what would have occurred if we had traded this approach with our options formula. We not only earned more than twice, but we also took on less risk. The key to harnessing volatility is the ability to make your options more flexible than any other investment vehicle. This chapter explains the formula and shows you how to apply it in your trading.

Appendix Systems

Last but not the least, the appendix contains almost 30 pages worth of Wave59 QScript source codes, which will enable you implement all the systems discussed in the book. There is no secret black.-You can find box methods here. Everything is explained in detail, and you can find the logic here.-programmed for you. Just enter the scripts into Wave59, apply them to a chart, and you’ll have a full working version of whatever system you are interested in. An auto-You can also download a trading script that will allow Wave59 to be set up to trade.-The system works by itself and does not require human intervention.

Here’s what you can expect in the new book Earik Beann – Mechanical Trading Systems