Trading Systems: A New Approach to System Development

Trading Systems

Trading Systems: A New Approach to System Development and Portfolio Optimisation
By Emilio Tomasini & Urban Jaekle

Every day there are traders who make a fortune. It may seem that it seldom happens, but it does – as William Eckhardt, Ed Seykota, Jim Simons, and many others remind us. You can join them by using systems to manage your trading (Trading Systems jacket blurb).

This bold yet simplistic statement lures profit-conscious readers into Emilio Tomasini and Urban Jaekle’s offering, which is an academic edge to the action-fuelled world of trading, underpinned by Tomasini’s position as Professor of Corporate Finance at the University of Bologna in Italy and Jake’s Physics degree. Readers may be familiar with Tomasini as editor of Italy’s Traders’ Magazine and myriad European public speaking engagements. Jaekle appears regularly on the European Financial public speaking circuit also, as well as contributing regularly to Traders and Active Trader magazines.

They take great pains however to remind readers of the importance of looking at what is actually going on with markets and how current trends must be related to the type of system traders may favor over another at any given point in time. The duo also directly address the fact that theoretical acumen doesn’t count as the number one factor for success, which they have identified as the right system which stands above all other potentially relevant factors.

Trading Systems is divided into three parts, simplifying how the book is navigated and put to that all-important practical use;

  • Part One offers a series of golden nuggets for easy consumption, based on a FOREX system which is designed to be transferred to other types of trading
  • Part Two follows a similar pattern, with a step-by-step blueprint for building a system
  • Part Three consolidates the ‘hands-on’ with a guide to combining various market-specific systems into one solid portfolio.

There has been much comment on the cost of Trading Systems which is on sale for around $50 and doesn’t offer any bonus or bumper material such as a DVD which most seasoned consumers would expect for that price tag. Despite this minor furore, the vast majority of reviews have given the book glowing reviews and five stars all round. Tomasini and Jaekle have delivered important pieces of information in a short read, which again adds to the minority of readers’ distaste at the print price; however others applaud the concise guide. Trading Systems has been modified for its tech-savvy audience with Kindle, App and Tablet versions which of course are much lower in price than the printed version.

Filled with frameworks that are easy to replicate, Tomasini and Jaekle also go one step further and test the usability in a number of ways which will provide the reader with much food for thought as they consider the best way to approach the market they find themselves in whilst in application mode.

Illustrations are also a welcome addition to Trading Systems, which contributes to making the information accessible to beginners and tangibly useful to the experienced trader looking for a way to improve.

Review by Andrea Photiou;

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