Leveraged Trading

About the Author

Preface
Who should read this book?
How does this book differ from my first book, Systematic Trading?
What's coming

Introduction
The mistakes that losing traders make
Why leverage is dangerous
Why you should use a system when you start trading
How is this book different from other trading books?

Part One: Fundamentals 7

Chapter One – Types of Leveraged Trading Product
Introduction to leveraged trading
Three key characteristics of leveraged products
What products are there for leveraged trading, and how do they work?
Products and underlying instrument are different

Chapter Two – Getting Ready to Start Trading
Choosing your trading software, hardware and data feed
Choosing which product to trade
Choosing your broker
How much money do you need?

Chapter Three – Introduction to Trading Systems
Why you should use a trading system
Common arguments against using trading systems
What makes a good trading system?
Why you should avoid third party trading systems

Part Two: Starting to Trade
Chapter Four – Concepts
Some definitions
Risk and return concepts
Minimum trades and minimum capital
Costs

Chapter Five – Introducing the Starter System
An overview of the system
Which instrument and product to trade?
When should we open positions?
How large should positions be?
When should positions be closed?

Chapter Six – Trading the Starter System
Before you start trading
Tasks on day one
Tasks on subsequent days
Trading diary
Summary

Part Three: Diversifying
Chapter Seven – Adding New Markets
Advantages and disadvantages of diversification
The theory of diversification
Trading the Starter System adapted for multiple instruments

Chapter Eight – Adding New Trading Rules
The case for diversification of trading rules
My suite of trading rules
How do we use multiple trading rules?
Using multiple trading rules in practice

Part Four: Advanced Trading
Chapter Nine – From Discrete to Continuous Trading
Why it can be safe to trade without a stop loss
Continuous trading
Practical trading without a stop loss

Chapter Ten – Position Adjustment
Adjusting position size for confidence: non–binary trading
Adjusting position size for risk
Adjusting position size without incurring heavy trading costs
Practical non-binary trading

Chapter Eleven – What Next?
Improvements to the Starter System
Back-testing and designing your own system
Semi-Automatic Trading
Epilogue
Glossary

Appendices
Appendix A: Useful Information
Further reading
Useful websites

Appendix B: Costs
Transaction costs
Holding costs
Total costs
Minimum capital and costs
Smarter execution to avoid the spread

Appendix C: Calculations
Back-adjusting prices
Instrument risk calculation
Moving average calculations
Breakout calculations
Performance ratio
Acknowledgements
Index