Monday, April 29, 2013

Technical Traders Guide to Computer Analysis of the Futures Markets 1st edition, Charles Lebeau



For those familiar with Charles Le Beau, it will come as no surprise that this volume is full of down to earth practical advice on trading the markets. While the volume is dated by it's misleading title - a large percentage of the information is timeless - even though trading with computers is no longer a novelty worthy of including in the title of a book. Le Beau runs through his approach to the markets, and gives some great fresh ways to use some of the most familiar indicators - ADX, RSI, Percent R, MacD. I'm sure there's something new here for anyone. There's more value in this book than in any webinar which promises you the keys to the kingdom - Well worth the spend.

I thought this book was a great read. It is well written, logical, and methodical. It is a great book for an advanced beginner, or an intermediate trader (like me) who is reading a wide variety of trading books. I liked the messages from the book: think, define problems, find solutions, test, test, and test. I learned some new things that I have not read anywhere else, but the book also goes over subjects already well covered in other books. The book specifies that it targets the futures market, but most material in the book applies to the stock market (which I participate in) as well.

This is a fine book to read, especially if you can buy it used (it is well made with an excellent binding) or find it in a library or at a friend's house. Which brings me to the price: it's a bit steep, the book is not that long, which is why I gave it four stars.

This book really lays it out, indicator by indicator. The authors are real traders with years of experience. LeBeau & Lucas take an in depth look at the most common indicators and oscillators used in the market by professional traders. Yes, there are some dated references to computers and software, the book published in 1992, but they do not diminish the value of the material covered for each technical indicator. I must say that I have truly enjoyed reading this book and it has provided insight to my trading. You will read about real life studies for each indicator and how it performed under different conditions. How to enter and exit a trade, and which indicator is best fitted for which side of the trade. This book is truly a hidden jewel among the clutter of useless hype and false claims on today's bookshelves. I have recommended this book to several of my friends.

I ran across my old copy of Chuck LeBeau's comprehensive guide on tools and indicators that are used to analyze the markets. As I thumbed through this book I was struck by how relevant all of Chuck's work is to today's active trader and investor crowd. So much of what Chuck talks about is still in use today. In fact, even though he wrote the book for Futures traders, those who trade stocks, options and even Forex will find this work to be highly useful. I believe some of it may evolved into Chuck's current project as head of research for Smartstops.net. If you want to find out what indicators are out there and how to use them in order to gain an edge, I highly recommend this book. Most importantly, you'll be able to sift through hundreds of indicators that are, by default, installed on every trading platform and identify just the small handful that will make a difference in your trading or investing.

This book is a must read for Trading System Developers. The concepts can be applied to many markets. The section on testing alone is worth the price of the book.

This book gets a 4 stars rating because of its expensive price (the book is only 220 pages and full of empty spaces). But, price is always subjective. You may treat it as the cost of your education.

Anyway, what makes this book so very valuable is the fact that it is easy to read, clear, definitive, and yes it has so many valuable information on what parameters to use for each indicator. How many of you left confused on what parameters should be used? This book will definitely clear away the clouds in your mind.

LeBeau has done extensive research on indicators such as ADX and his insights on other popular indicators are extremely valuable.

The title may be slightly misleading because bulk of the contents is explaining each technical indicator (120 pages), while only 45 pages on explaining how to build a trading system. Yet, it is clear and concise.

The final Chapter is also valuable. It deals with 12 Day Trading systems that the author has selectively chosen out of all day trading ideas he has or has received from other great traders.

I only discoverd this pretty old book recently. I am suprised to find there are quite a lot of trading tips. What make this book stands out of the crowd is the tips were very concrete and practical. The discussions about exit and stop loss are parcticular good. Many other books just said cut the loses quick. How quick? When? This book gives you some hints. The authors also give some tricks in using indicators which I hope I could know earlier.

I know Charles Lebeau. He does occasional system seminars with my father Dr. Van K. Tharp one of the "Market Wizards" and author of Trade Your Way to Financial Freedom. Charles Lebeau is a great trader. When anyone ask me about a technical indicators book this is the one. Charles is very through. He noticed the best traders in the industry are usually right 30% to 40% of the time. They just cut their losses short and have these huge winners. Charles tested most of the major indicators against random entry i.e. (Flipping a coin) most of them don't do any better. Your exits, psychology, and money management determine if you are making money or not. Don't pay too much attention to your entry. This book explains his results and how to use each indicator. Almost any indicator will work with proper money management. I done well even with flipping a coin and the right stop. The indicator best for you is one you feel comfortable with and will stick with. BUY THIS BOOK and hopefully what I wrote may make some sence to you.

This book is nothing special. I really disagree with the author's interpretation of the ADX indicator. Absolute level is far more important than slope. The day trading systems shown will lead you to the poor house in no time. Presents some novel ideas though.

The book systematically covers technical approach to trading form system building to its testing. Recommended !

Product Details :
Hardcover: 312 pages
Publisher: McGraw-Hill; 1 edition (December 1, 1991)
Language: English
ISBN-10: 1556234686
ISBN-13: 978-1556234682
Product Dimensions: 8.8 x 0.9 x 11.3 inches

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