The Evaluation and Optimization of Trading Strategies - 2nd Edition by Robert Pardo (Hardcover)

About the Book

Rev. ed. of: Design, testing, and optimization of trading systems. c1992.

Book Synopsis

A newly expanded and updated edition of the trading classic, Design, Testing, and Optimization of Trading Systems

Trading systems expert Robert Pardo is back, and in The Evaluation and Optimization of Trading Strategies, a thoroughly revised and updated edition of his classic text Design, Testing, and Optimization of Trading Systems, he reveals how he has perfected the programming and testing of trading systems using a successful battery of his own time-proven techniques. With this book, Pardo delivers important information to readers, from the design of workable trading strategies to measuring issues like profit and risk. Written in a straightforward and accessible style, this detailed guide presents traders with a way to develop and verify their trading strategy no matter what form they are currently using-stochastics, moving averages, chart patterns, RSI, or breakout methods. Whether a trader is seeking to enhance their profit or just getting started in testing, The Evaluation and Optimization of Trading Strategies offers practical instruction and expert advice on the development, evaluation, and application of winning mechanical trading systems.

From the Back Cover

Praise For The Evaluation and Optimization of Trading Strategies, Second Edition

"The testing process is key to a profitable trading method and Bob Pardo brings order and sanity to it. He shows the reader how to navigate the minefield of optimization and offers walk-forward testing as a way to change a static system into a dynamic one."
--Perry Kaufman, author of New Trading Systems and Methods, Fourth Edition

"Will your system work in the future? In this book Bob Pardo shows you exactly how to construct a trading system and then take the most important walk of them all--the walk forward test--to find out if your system is really worth trading. Now you can know before you trade!"
--Larry Williams, author of Trading Stocks & Commodities with the Insiders: Secrets of the COT Report, and Long-Term Secrets to Short-Term Trading

"How to evaluate likely future trading system performance is not just a question--it's the question, and Pardo's 1992 Design, Testing, and Optimization of Trading Systems was a milestone work in the field. Now his approach has been updated and expanded to reflect technological change as well as many insights gained along the way. A must read for anyone who takes trading seriously."
--Bruce DeVault, President, Quantevo--Algorithmic Trading Development

"Ask serious system developers for their recommended reading list, and Bob Pardo's book is likely to be among the first mentioned. This book is the real deal; a serious work that seeks to teach you what to look for and what to avoid in your quest for workable trading methodologies. Best of all, it helps you achieve the kind of objective, critical thinking necessary for mechanical trading success. Seekers of magical holy grails would be advised to look elsewhere, but for earnest professional trading aspirants, this is a most rewarding read."
--Art Collins, author of Beating the Financial Futures Market: Combining Small Biases Into Powerful Money Making Strategies

"This book is the definitive book on designing, testing, and using trading systems. There is no better book on the market."
--Courtney Smith, Courtney Smith & Co., Inc.

Review Quotes

"... an essential read." (The Technical Analyst, August 2008)

About the Author

Robert Pardo is a recognized expert in the design and testing of trading strategies and computerized trading applications, and a long-standing professional money manager. He is founder and President of Pardo Capital Limited, a professional money management firm; Pardo Group Limited, a consulting firm; and Pardo Analytics Limited, a proprietary market analysis services firm. Since 1983, Pardo has continuously updated his software as well as designed, programmed, and documented versions of various commercial trading applications. He has worked as a consultant with world-class trading firms such as Goldman Sachs, Transworld Oil, and Daiwa Securities, and created the XT99 trading platform as a joint venture and ongoing strategic alliance between Pardo Capital Limited and Dunn Capital Management. Contact Robert at rep@pardocapital.com, or go to his Web site at http//www.pardocapital.com.