Quantum Trading Using Principles of Modern Physics to Forecast the Financial Markets

by Oreste, Fabio

• ISBN13: 9780470435120
• ISBN10: 0470435127
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-08-02
• Publisher: Wiley

Summary

A cutting-edge guide to quantum trading Original and thought-provoking, Quantum Trading presents a compelling new way to look at technical analysis and will help you use the proven principles of modern physics to forecast financial markets. In it, author Fabio Oreste shows how both the theory of relativity and quantum physics is required to makes sense of price behavior and forecast intermediate and long-term tops and bottoms. He relates his work to that of legendary trader W.D. Gann and reveals how Gann's somewhat esoteric theories are consistent with his applications of Einstein's theory of relativity and quantum theory to price behavior. Applies concepts from modern science to financial market forecasting Includes a CD that?shows how to generate support/resistance areas and identify potential market turning points Addresses how non-linear approaches to trading can be used to both understand and forecast market prices While no trading approach is perfect, the techniques found within these pages have enabled the author to achieve a very attractive?annual return since 2002. See what his insights can do for you.

Author Biography

Fabio Oreste manages closed-end funds and managed accounts for private and institutional clients with the firm he founded, HF First Financial. In addition to this, he teaches classes on trading and financial engineering. Oreste earned a master's degree in business and finance from LUISS, a prestigious university in Italy. Before embarking on his financial career, he spent several years abroad in the United States, Tibet, Nepal, and China, where he studied philosophy and psychology.

Table of Contents

Preface	p. ix
The Birth of Quantum Trading: How Einstein's Theories and Quantum Particles Affect Your Daily Trading	p. 1
A Lesson in Elementary Physics	p. 6
P-Space: A Quantum Trading Tool	p. 16
How to Psychologically Prepare for Successful Trading	p. 23
Life Goals and Quantum Strategies	p. 23
Are Porsches and Supermodels Everything in Life?	p. 26
How Do You Play the Game of Life?	p. 27
Building Powerful Strategies Is the Key to Success	p. 28
Creating Momentum in Life	p. 30
Crossing the Bridge	p. 32
Quantum Trading 101	p. 37
A Glimpse at Some Technical Analysis Problems	p. 37
Making Money with Quantum Price Lines	p. 40
Trading Rules of Thumb	p. 47
Sun Spots, Geomagnetic Storms, and the Stock Market	p. 51
Defining Sun Spots and Geomagnetic Storms	p. 53
Proposed Trading Strategies	p. 58
P-Space Structure and Quantum Trading Algorithms	p. 63
Calculating a QPL	p. 66
Calculating a QPL's Subharmonics	p. 70
Examples of Powerful QPLs and QPLSHs	p. 72
Not All QPLs Are Alike	p. 73
Trading with Intraday QPLs	p. 76
The Life and Contributions of W. D. Gann: A Forerunner of Quantum Trading	p. 79
An Uncanny Master of Trading Interested in Atoms and Electrons	p. 80
Gann's Theory of Stock Market Cycles	p. 84
Chaos Theory and Gann Angles	p. 91
How Gann Angles Originated	p. 92
The Fall of the Stock Exchange in 2000	p. 98
Money Management Strategies	p. 101
Why Some Traders Have Big Losses	p. 102
The Dangers of the ôAverage Lossö Strategy	p. 104
Noise, Hot Rumors, and Recommendations to Buy	p. 105
Entelechy: The Most Powerful Quantum Trading Concept	p. 107
General properties of Quantum Entelechy	p. 109
QPL Entelechy	p. 109
Angular Entelechy	p. 113
Mapping and Trapping	p. 114
Forecasting Tops and Bottoms Using QPLs and Subharmonics	p. 115
Forecasting a Top	p. 116
Forecasting a Bottom	p. 123
QPLSH Rule for 180-Degree Angles and 90-Degree Angles	p. 127
Time Algorithms in Quantum Trading	p. 137
Peculiarities of Time Algorithms	p. 138
Forecasting Tops and Bottoms with TAs	p. 145
Time Algorithms' Golden Rules	p. 152
How to Use All the Trading Tools Together	p. 155
How to Use Options: Unlimited Gains with Little Risk	p. 171
Options Defined	p. 171
Calls and Puts: Two Sides of the Option Universe	p. 176
Strike Prices with Respect to the Underlying Price	p. 176
The Components of an Option Premium	p. 178
Intrinsic Value and Time Value	p. 181
The Greeks: Fundamental Parameters of Options	p. 187
Options Strategies with Quantum Trading Tools	p. 201
QPLSHs: A Powerful Indicator to Buy and Sell Options	p. 201
Volatility-Based Spreads	p. 205
A Toast to a New Achievement in Trading	p. 211
Conclusion: Making Peace	p. 217
Acknowledgments	p. 221
About the Author	p. 223
Index	p. 225
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