Intermarket Trading Strategies by Markos Katsanos is an instructive guide that unfolds the concept of intermarket analysis and utilizes it to create efficient trading strategies. This book is a valuable resource for both novice and experienced traders who are eager to learn new perspectives and methods to navigate and exploit the interconnectedness of global financial markets.
Katsanos, a skilled quantitative analyst and trader, begins by introducing the theory of intermarket analysis. He explains how different financial markets, such as stocks, bonds, commodities, and currencies, interact and influence one another, which often results in observable patterns that traders can capitalize on.
The book delves into the quantitative methods used in intermarket analysis. Katsanos provides a thorough explanation of advanced statistical tools and techniques, such as regression analysis, neural networks, and genetic algorithms, to discern the correlations and causal relationships between markets. His exposition is complete with extensive mathematical formulas, making it a compelling read for those with an interest in quantitative finance.
“Intermarket Trading Strategies” stands out due to its practical approach. Katsanos offers over 20 different intermarket trading systems, each meticulously tested and validated using AmiBroker’s backtesting engine. He meticulously presents the rules and parameters for each system, with detailed charts and data to illustrate the strategies.
The strategies span across various markets and timeframes, catering to different trading styles. They encompass trend-following, mean-reversion, and pattern-based setups, giving readers a diverse arsenal of intermarket trading systems to explore.
Katsanos also provides an in-depth exploration of portfolio optimization, a significant aspect of risk management. He emphasizes the importance of diversification and elucidates methods to achieve optimal asset allocation, which helps traders balance risk and reward.
“Intermarket Trading Strategies” by Markos Katsanos is a unique, innovative guide that combines theory, quantitative techniques, and practical strategies to harness the power of intermarket analysis. This comprehensive book delivers traders a wealth of knowledge and tools to develop profitable, robust trading systems in the interconnected global financial markets.