A Practical Guide to ETF Trading Systems: A systematic approach to trading exchange-traded funds

by Anthony Garner

Overview

'A Practical Guide to ETF Trading Systems' is about simple, rule-based trading systems of a trend following nature.

This book reflects the author's belief that successful investing is not complex, that market timing works and that investors should spurn traditional actively-managed products in favour of managing their own investments using index-tracking funds.

Providing a comprehensive introduction to rule-based trading, this book sets out in detail two specific systems which may be applied to exchange-traded funds (ETFs) and exchange-traded commodities (ETCs).

Sceptics will maintain that mechanical systems do not work and that you cannot ignore the fundamentals. They are wrong. Sophisticated investors have profited handsomely over the years by following price trends on a purely mechanical basis and they will continue to do so.

This guide will show you that systematic trading is likely to provide far better risk-adjusted returns than any conventional approach currently on offer from professional fund managers.

There has never been a better time to benefit from the advantages of systematic investing. At a time when long-only traditionalists are fully invested in stocks and nursing huge losses, the systematic investor has exited the markets entirely and waits patiently for a signal to re-enter.

Product Details

ISBN-13:	9781906659271
Publisher:	Harriman House
Publication date:	10/30/2009
Pages:	186
Product dimensions:	6.80(w) x 9.60(h) x 0.60(d)

About the Author

After education at Westminster School, Oxford University and The College of Law, Anthony Garner spent a few formative years as a solicitor with a City of London law practice, before moving to an investment bank. He left conventional employment in favour of a long cherished aim to work for himself and since 1995 has been trading financial markets for his own account. For some years now his interest has concentrated on designing, testing and trading simple mechanical strategies, since his years inside the financial industry convinced him that for the majority, the discipline of systematic trading is a better way to go.

Table of Contents

Preface

Introduction

Part 1: Rule-based Trading

A Simple Mechanical System

Does Rule-based Trading Work in the Real World?

Back-testing: Data

Back-testing: Software

Back-testing: Strategy and System Design

Part 2: Developing a Rule-based System

Establishing Benchmarks

The Bollinger Band Breakout System

Increasing the Returns on the Bollinger Band Breakout System

A Momentum System

Conclusion

Where to go from here

Appendix