The Ultimate Trading Guide

by Hill, John R.; Pruitt, George; Hill, Lundy

• ISBN13: 9780471381358
• ISBN10: 0471381357
• Edition: 1st
• Format: Hardcover
• Copyright: 2000-08-07
• Publisher: Wiley

Summary

In The Ultimate Trading Guide, Hill, Pruitt, and Hill clearly explain the principles behind trading systems. They demonstrate how various types of systems operate for accounts of all sizes--from $10,000 to $1 million. And they provide the tools and background necessary for developing computerized trading systems that really work

Author Biography

JOHN R. HILL is the President and founder of Futures Truth, a leading newsletter that analyzes and rates trading systems. He has been a frequent guest on CNBC and is a popular speaker at numerous investment conferences. Mr. Hill holds a master&#146;s degree in chemical engineering from Ohio State University.<BR>

Table of Contents

Preface	xi
Acknowledgments	xv
Introduction: The Search for Truth	1	(7)
The Set-Ups or the Big Picture	8	(20)
Trading versus Investing	8	(1)
The Ultimate Timing Tool for All Markets	9	(1)
Technology Revolution	9	(1)
Stages of Market Action	10	(9)
How to Make Money with This Theory	19	(3)
Case Study of Trading Rules	22	(3)
To Trade or Not to Trade	25	(1)
Conclusion	26	(1)
Note	27	(1)
Practical Applications of the Elliott Wave Theory	28	(9)
Targets for Major Movements	30	(1)
Corrective Waves or Phases	31	(2)
Case Study in Crude Oil	33	(1)
How to Trade A or ABC Corrections to a Thrust	34	(1)
Trading Plan	35	(1)
Other Works on Cycles	36	(1)
Summary	36	(1)
Bar Charts and Their Forecasting Ability	37	(39)
How to Use Short-Term Patterns for Profit	39	(4)
Entry Techniques	43	(1)
System Development Based on Closing Prices	43	(12)
Three-Day Equilibrium Reverse	55	(4)
Pattern Gap	59	(1)
Hook Closing	60	(4)
Narrow Range Bars	64	(4)
Trading the Narrow Ranges	68	(1)
Trading the Wide Range Bar	68	(1)
Buy Zones	69	(1)
Stop Point	70	(1)
Taking Profits	71	(1)
Anticipation	71	(1)
Time Breakout Rule	72	(1)
Gap Higher/Low Openings	73	(3)
Channel and Trendline Trading	76	(7)
Trend Lines and Parallel Movements	76	(2)
Trading the 0--2 Line	78	(2)
Trendline and Four-Close System (TL4C)	80	(1)
Trend Channel System	81	(2)
Swing Trading	83	(18)
Swing Charts	83	(3)
Anticipation	86	(1)
Move Ending	87	(1)
Pullback Buys	87	(1)
Action and Reactions	88	(1)
Preliminary Demand	88	(1)
Time and Space	89	(1)
Sell Tops after a Trend Change	89	(1)
Three Bar Rallies	90	(1)
Holding Gain and Rally from Support	91	(1)
Setups for Trend Change	92	(2)
Trend Continuation	94	(1)
Three Drives to a Bottom	95	(1)
Support/Resistance Zones	95	(2)
Time and Price Projections	97	(2)
Trend	99	(1)
First Day in Rally	100	(1)
Patterns	101	(38)
Opening Range Breakouts	102	(2)
Trend Up Confirmed	104	(1)
Spring Reversal Pattern	105	(1)
Upthrust Reversal Pattern	106	(2)
Yum-Yum Continuation Pattern	108	(1)
L Formation and Reverse L	109	(1)
Double Tops and Bottoms	110	(1)
Small Morning Tails	111	(3)
Clear Out Patterns	114	(1)
Overlapping and Non-Overlapping Bars	114	(2)
Two-Day Intersection	116	(1)
Channel Trading Systems	116	(5)
The Pullback	121	(2)
High of Low Bar for Buying/Low of High Bar for Selling	123	(1)
Three Bars Up/Down	124	(1)
Dynamite Triangle	125	(1)
Narrow Range/Wide Range	126	(1)
Two-Day Flip (2DF)	127	(1)
Tight Formation Breakout	128	(1)
The Importants of Exits	128	(6)
Use of Tools in Trading the S&Ps	134	(5)
Drummond Geometry and the PLdot: An Introduction to the Fundamentals	139	(14)
What is Drummond Geometry?	139	(13)
Conclusion	152	(1)
Introduction to Mechanical Trading Systems	153	(11)
Why Use a Trading System?	155	(2)
Throw Those Ads Away	157	(2)
Should I Buy a Trading System?	159	(1)
Myths and Facts Concerning Trading Systems	160	(3)
Conclusion	163	(1)
Where to Start	164	(44)
Hardware	164	(1)
Software	164	(2)
Data	166	(5)
Indicators	171	(14)
Five Approaches Used by the Best Trading Systems	185	(1)
Anatomy of a Trading System	185	(21)
Conclusion	206	(2)
Historical Testing---A Blessing or a Curse	208	(20)
Simulated Analysis	208	(1)
Curve Fitting	209	(5)
Periodic Reoptimization---Does It Work?	214	(2)
Alternative to Optimization---Adaptive Parameters	216	(3)
You Design the Trading System, Not Your Computer	219	(1)
How to Evaluate Trading System Performance	220	(4)
How to Evaluate Trading System Portfolio Performance	224	(2)
Conclusion	226	(2)
Money Management	228	(24)
Statistics---A Necessary Tool	229	(1)
Risk of Ruin	230	(1)
Capital Allocation Model	231	(9)
Compounding Returns	240	(1)
Placement of Protective Stops and Profits Targets	241	(10)
Conclusion	251	(1)
Turnkey Systems and Portfolios	252	(6)
Portfolio 1 $10,000 Initial Capital	252	(1)
Portfolio 2 $25,000 Initial Capital	253	(1)
Portfolio 3 $50,000 Initial Capital	254	(1)
Portfolio 4 $100,000 Initial Capital	255	(1)
Portfolio 5 $300,000 Initial Capital	256	(1)
Conclusion	257	(1)
Top Ten Systems of All Time	258	(25)
Bibliography	283	(2)
Appendix: Easy Language Source Code	285	(8)
Index	293