Forex Book

5 Reviews

1. Him:

   For good fund performance, you’re going to need transaction cost modeling, coupled with fantastic risk and alpha models. If you want to model and analyze your cost of transactions, then this book is provides the blueprint for that. The writers also talked about VWAP and blind bid trading stratagems. Even with lots of typos in the text, it is still written well. Suited more for large-cap liquid stocks, most of the systems in this book are beyond novice traders. It’s imperative that we find a model approach that is justified empirically for smaller liquid names and small-cap stocks.

   31 October 2010, 11:05 pm

2. Bloom:

   A nicely written work that reads well is a wolf in sheep’s clothing; it is alluring indeed, but will take you through the wrong trail. Variability in results is too big for any practical use if information coefficients find themselves too low, and people that manage quantitative portfolios have found this out. There is a trio of components that’s important for this text’s variation to succeed: volatility forecasts, covariance estimates, and market impact estimates…all of these are required to have lofty standard errors.

   The variability of volume and impermanent market-impact decay are all vital and not discussed at length.

   Based on this method alone, I’ve watched whole-trading desks put infrastructure in place to implement it. The managers never really knew the flaw of this particular approach, though; the results were sub-par and sometimes less than what the desks would have made before. Thus they keep trying to turn a profit, trying their best to utilize the statistical arbitrage they learned. These are the three rudimentary problems: Large numbers, by standard, are hardly ever accessible, most of the times you’ll have to finish the trade, and you don’t pick the stocks to trade.

   Not the root of alpha any longer, classical statistical arbitrage has been ousted. The inadequacies have been known about and exploited for the most part. You may say Renaissance, but their alpha works for varying reasons.

   If you want even better results, you can merge expert systems and econometrics/statistics.

   31 October 2010, 11:06 pm

3. Keith:

   Unusable and unable to be taken serious, this book is not for anyone. It’s crammed with misinformation and a faux analytical bent. The algebra does not add up with what is written, and most of the writing is unfathomable, even though I try my best to trudge through most books no matter how bad they are – don’t waste money on this.

   31 October 2010, 11:06 pm

4. Miller:

   This may be the only book you can find if you’re intrigued by the value impact of the whole transaction cost of producing a big order. This isn’t surprising as this is a highly stylize niche. The work gives a look at the differing processes of pseudo-quantitative methods and costs of transaction; I do say pseudo as some of the equations provided are of a suspicious nature and sometimes contain serious errors. You’ve picked the right book if you need to know exactly what VWAP is and the implementation strategies people use it for; also if you wish to learn how value impact is projected/measured.

   This isn’t the book for small time day traders to create a yield of, but for the folks at trading desks of places that implement large orders.

   31 October 2010, 11:07 pm

5. Joe:

   If you’re a professional or a student, this may be the perfect monetary resource for you. This book shows investing and financing from the eyes of the trader, and is one of a kind in that capacity.

   Most people know that if you utilize an investment choice wrong, you can negate a lot of the manager’s wanted alpha, but how to look at the set of likely implementation strategies? The primary goal for Optimal Trading Strategies is the answer to that query. The writers do a great job investigating transaction costs (such as why they occur, where, and when) and progress with a simple to grasp analytical method to control, estimate, and manage all the costs. The authors’ advance to creating these “optimal trading plans” as well manages to be the foundation for attaining “top execution.” The net effect to managers is superior returns. I highly advocate this position for anybody attracted to understanding every aspect of economics and investment conjecture, and it creates a superb balance to graduate level transcripts.

   31 October 2010, 11:07 pm