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All rights reserved. Printed simultaneously in Canada.
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This publication is designed to provide accurate and authoritative
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Library of Congress Cataloging in Publicaton Data:
Chande, Tushar S., 1958-
Beyond technical analysis : how to develop & implement a winning
trading system / Tushar S. Chande.
Includes index.
ISBN 0-471-16188-8 (cloth : alk. paper)
1. Investment analysis. I. Tide. II. Series. HG4529.C488 1997 332.6
—dc20 96-34436
Printed in the United States of
America 10 98765432
, Contents
Preface xi
Acknowledgments xiii
1 Developing and Implementing
Trading Systems 1
Introduction 1
The Usual Disclaimer 3
What Is a Trading System? 3
Comparison: Discretionary versus Mechanical
System Trader 4
Why Should You Use a Trading System? 5
Robust Trading Systems: TOPS COLA 6 How
Do You Implement a Trading System? 7 Who
Wins? Who Loses? 8 Beyond Technical
Analysis 9
2 Principles of Trading System Design 11
Introduction 11
What Are Your Trading Beliefs? 12
Six Cardinal Rules 14
Rule 1: Positive Expectation 15
Rule 2: A Small Number of Rules 17
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