BOOK REVIEW: Commodity Market Money Management by John Sweeney
ARTICLE SYNOPSIS ...BOOK REVIEW: Commodity Market Money
by John Sweeney
Commodity Market Money Management
by Fred Gehm
John Wiley & Sons, 1983
One Wiley Drive
Somerset, New Jersey.
There are really two sides to trading: the idea and the execution. The idea to trade, we get from a
system or from our imagination. The management and execution of our activity (goal-setting, planning,
controlling) is an area few pursue. Commodity Market Money Management covers this neglected side of
trading, and it's a long-overdue treatment. Properly seen, money management covers the entire program
ARTICLE SYNOPSIS ...Corner The Market
Many instructive articles and major works in the field of technical analysis and speculation lie
undisturbed on dusty back shelves, or have fallen into obscurity because they are no longer in print. As a
unique feature of this magazine and in line with our continuing commitment to offer our readers
instructive or practical material we will be reprinting classic stories and articles on speculation and
technical analysis culled mostly from private libraries. We feel this material, which is only available to
our subscribers, will be of interest and value as we are all reaching ...
ARTICLE SYNOPSIS ...Fourier Spectral Analysis
by William T. Taylor
Because many commodity and stock prices appear to exhibit some cyclical movement, it is important
for the trader who relies on this characteristic feature to recognize these cycles and adjust the parameters
of the particular technical trading system in use, accordingly. For example, the trader may wish to filter
out or accentuate cycles of particular lengths using moving averages, Commodity Channel Index, or any
number of popular trading systems.
Some cycles can be seen, more or less, on the price charts from commercial charting se...
ARTICLE SYNOPSIS ...Letters to Technical Analysis
Dear Dr. Warren:
Recently I purchased a book, Digital Foundations of Time Series Analysis, by Robinson and Silvia, that
touches upon the Maximum Eutropy Method (MEM). As much as I want to understand I the basics, my
college training doesn't give me the advanced mathematical concepts needed to fully appreciate what the
authors try to explain. For this reason, I am grateful for your series on the MEM applied to spectral
analysis and forecasting. It has already clarified a few basic ideas, for which I thank you. The MEM
appears to be an elegant and powerful analyti...
Maximum Entropy Optimization by Anthony W. Warren, Ph.D. and Jack K. Hutson
ARTICLE SYNOPSIS ...Maximum Entropy Optimization
by Anthony W. Warren, Ph.D. and Jack K. Hutson
The Maximum Entropy Method (MEM) is a promising new system for short-term Spectrum Analysis
and trend forecasting. In this article we discuss the process of obtaining an optimal set of MEM
coefficients using the author's code as adapted to the Compu-Trac system.
The basic theory and terminology associated with the MEM method are discussed in a Technical Analysis
article ""An Introduction to Maximum Entropy Method (MEM) Technical Analysis"", published
January/February 1984. To review some of the major points, MEM is a...
NOVICE SPECULATOR: An Anti-COMMODEX System by John Sweeney
ARTICLE SYNOPSIS ...NOVICE SPECULATOR: An
by John Sweeney
One observation I made when starting technical analysis was that there were relatively few bits of data
to work with: price, volume, and open interest for a given futures contract and its related contracts and
indices. Thus, any ""black box"" I constructed to forecast price action would be dependent on these inputs.
I didn't want to repeat others' work (perhaps poorly), so my first thought was simply to find the advisory
service which had best exploited each one of these variables--or a combination of them--and sign up. I
SIDEBAR: Programming conventions for BASIC Technical Analysis subroutines:
ARTICLE SYNOPSIS ...Programming conventions for BASIC Technical
NO Input/Output routine is provided, only a generic BASIC computational subroutine containing the
fundamental technical analysis is provided. this subroutine should, with only minor changes, work on any
computer using the BASIC language.
INPUT data (daily, weekly, monthly, etc.) must be provided by the user (i.e., YOU) in the following
ARTICLE SYNOPSIS ...The Seduction of Leverage
by Jesse H. Thompson
""Leverage 'o Leverage. Ye siren of the speculative sea...""
Rule: Do Not Overtrade!
I must have bumped into this time worn dictrum a thousand times before I began to understand more
fully the implications of this rule relative to actions taken in speculative markets.
Of course, early in my studies I decided this rule was simply common sense and too basic to waste any
further time or effort on, So I vowed to never overtrade and simple as that I was through with this rule.
(Well, maybe I was through with this rule but it was NOT through...