The new book by Michael Harris, Fooled by Technical Analysis: The perils of charting, backtesting and data-mining, is available on an annual subscription basis. This is an online book and if you subscribe you will not get a hard copy or a PDF. You can use your username and password to read the book online. (Free extensions of the subscription period will be provided upon request.)
270+ pages (6″ x 9″ )
74 high quality charts
Available online only
Table of Contents
First revision: September 20, 2017. A section on pitfalls of validation tests was added.
It was about time that someone spoke up about the perils of chart analysis, back-testing and data-mining clearly and honestly. In this book you will learn why naive chartists and quants have no chance of profiting from trading the markets and how expert chartists and quants attempt to maximize their winning odds. There are many examples that illustrate the points made in the book.
You will learn why:
- Classical chart patterns are unprofitable
- Chart analysis has no logical foundation
- Statistical hypothesis testing is not applicable in system development
- Naive quants are fooled by the expectation formula
- Out-of-sample validation tests should be avoided
- Walk forward optimization and Monte Carlo analysis are ineffective
- Frequent backtesting almost always leads to failure
You will also learn about:
- The limitations of backtesting and how to properly use it
- Data-mining and data snooping bias
- Processes that contribute to data-mining bias
- Popular myths about data-mining bias
- The pitfalls of strategy validation tests
- Effective trading system validation tests
- Determining capital requirements for system trading
- Practical ways to determine position size
- The current alternatives to technical analysis
- Cognitive biases that plague chart analysis
- The proper use of patterns and indicators by expert chartists
- The effects of trading friction and trading timeframes on profitability
and much more.
Click here for the full table of contents. You may subscribe below. Price: $60/year. A free extension of the subscription period will be provided upon request. In case you would like to subscribe to both books later you will need to first contact us for available options. You may also subscribe to both online books with a discount here.
Bonus: A free subscription to the book 15 Lies About Trading And Investing.
Online book subscribers do not receive a hard copy, ebook or PDF. Instead they can use the username and password selected below to read the books online. Note: There are no auto renewals or recurring billing and no refunds for cancellations. After subscribing you can download a receipt from your subscription details page.
No access to other premium content. Online book subscribers cannot access other premium content unless the subscription is upgraded for that purpose.
No credit card and bank details are stored in our system. You may register a new account below. After the registration is processed you will be directed to PayPal where you can pay with a PayPal account or with a credit card. If after registration payment is not completed or cancelled for some reason, you can always log on to our website and complete just this part of the process.
For additional $10 you can also get the book “15 Lies About Trading And Investing”. Click here for more information.
Register New Account
© 2015 – 2018 Michael Harris. All Rights Reserved. Any unauthorized copy, reproduction, distribution, publication, display, modification, or transmission of any part of this blog is strictly prohibited without prior written permission.