Overview
- Explains Simple Moving Average (SMA) and Exponential Moving Average (EMA): their uses and limitations
- Divides the frequency spectrum of trading tactics into Profit Zone and Loss Zone
- Performs Fourier analysis on real market data and applies various trading tactics to gauge their profitability
Part of the book series: Management for Professionals (MANAGPROF)
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Table of contents (9 chapters)
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Front Matter
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Back Matter
Keywords
About this book
Financial markets are not predictable, let alone controllable. The one thing traders and investors can control is their trading tactics, where some can have higher probability of profitability than others. This book explains, by using phase analysis, why some of the indicators, and trading tactics would work better than others, and why some indicators and trading tactics would perform poorly. Emphasis is placed on Awesome Oscillator and Accelerator Oscillator, which are based on Simple Moving Average, a popular tool employed by traders. They are then compared to Moving Average Convergence-Divergence (MACD) and MACD Histogram (MACDH), which are based on exponential moving averages. By varying the parameters of MACD and MACDH, one can change the phase or time delay, and possibly make a larger profit.
This book is for practitioners, and includes all MATLAB programs used in the book.
Authors and Affiliations
About the author
Don K. Mak was a research scientist for the Canada Federal Government, and an Adjunct Professor at Queen's University (Canada). He has published over fifty papers in condensed matter physics, materials evaluation, and medical diagnosis. His book, Science of Financial Market Trading, has been adopted as a textbook and reference by universities worldwide. The book, Solving Everyday Problems with the Scientific Method, of which he is the lead author, has been used by universities and colleges as references in several countries, and has been translated into Korean, Chinese and Arabic.
Bibliographic Information
Book Title: Trading Tactics in the Financial Market
Book Subtitle: Mathematical Methods to Improve Performance
Authors: Don K. Mak
Series Title: Management for Professionals
DOI: https://doi.org/10.1007/978-3-030-70622-7
Publisher: Springer Cham
eBook Packages: Business and Management, Business and Management (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
Hardcover ISBN: 978-3-030-70621-0Published: 30 July 2021
Softcover ISBN: 978-3-030-70624-1Published: 30 July 2022
eBook ISBN: 978-3-030-70622-7Published: 29 July 2021
Series ISSN: 2192-8096
Series E-ISSN: 2192-810X
Edition Number: 1
Number of Pages: IX, 269
Number of Illustrations: 70 b/w illustrations, 25 illustrations in colour
Topics: Investment Appraisal, Financial Engineering, Macroeconomics/Monetary Economics//Financial Economics