Advanced Technical Analysis (CLASSROOM) - ATA

Advanced Technical Analysis (CLASSROOM) - ATA

Course Summary

Taught by Mr. Richard Weissman, a world-renowned author and technical trader, this two-day live course is filled with techniques, analysis and insights that only his 30 plus years of trading experience can bring. This 2-day program will provide you with a comprehensive understanding of various strategies employed in the field of advanced technical analysis, and how and when to use them.

Topics covered include:

• Integrating volatility studies with traditional mathematical technical analysis.
• Weissman’s Risk Management Pyramid including stop losses, volumetric limits, VaR limits, correlation analysis, stress testing and fixed fractional money management.
• Trend exhaustion indicators including TD Sequential and TD Combo.
• Using TD Points, TD Trendlines, TD Setup Trend and TD Risk Lines.
• How to use Guppy Multiple Moving Averages
• How to use Ichimoku Clouds  
• High-Frequency (aka “scalping”) Techniques: Timeframe divergence, cycles in volatility, statistical arbitrage
• Mechanizing Elliott Wave with the Elliott Wave Oscillator 
• Neural Networks, genetic algorithms and fuzzy logic
• Applying fractals, self-similarity and chaos theory to technical analysis
• Dark Pools, Icebergs, Gamers and low latency trading
• Real-time system development and optimization exercise with CQG software.
• Combining non-correlated trading systems.
• Regret Minimization Techniques: What they are and how to apply them to trend-following and countertrend models.

Course Content

Behavioral Finance and Technical Analysis

• Behavioral finance and how it relates to technical analysis:
  1. What is prospect theory?
  2. How technical analysis exploits irrational markets 

Risk Management, Volatility and Time Cycle studies

• Weissman’s Risk Management Pyramid:
  1. Volumetric and stop loss methods
  2. VaR and Stress Testing 
  3. Anti-Martingales (including Fixed Fractional position sizing) 
  4. Enhancing math-driven technical models with volatility studies
  5. Multiple Timeframe Analysis and Timeframe Divergence
  6. The limits of fractals in technical analysis 

Developing Trading Models with CQG Software

• Programming Issues in system development:
  1. Theory Checking, Spot Checking
  2. Backtesting and forward testing 
  3. Optimization studies
  4. Other pitfalls

Developing Mechanical Trading Systems

Using this real-time trading system development simulation attendees will analyze a commodity, develop a market opinion regarding which type (trending, mean reverting) of trading system will outperform over the next twenty-four hours and learn how other systems performed.

Neural networks, genetic algorithms, chaos theory and fuzzy logic 

This session examines the major types of advanced technical tools including neural networks, genetic algorithms, chaos theory, statistical arbitrage and fuzzy logic.  We’ll examine the tools, why they help in the development of technical trading models as well as their limitations.

Applying the Theories: Mechanizing Elliott Wave, Candlesticks and Trendlines

This session applies the theories discussed in the prior session to specific areas of subjective (non-mathematical) technical analysis including fuzzy logic to candlestick formations, applying neural nets and genetic algorithms to mechanical trading systems and mechanizing Elliott Wave with Tom Joseph’s Elliott Wave Oscillator and Profit Taking indicator.

Advanced topics in technical analysis: Clouds & Guppy’s Multiple Moving Averages

• Two of the most revolutionary tools available to trend-followers today are the Ichimoku Clouds and Guppy’s Multiple Moving Averages.  In this session we’ll look at what makes these tools so unique including:
  1. Multiple levels of support & resistance 
  2. How the Cloud shows future levels of support & resistance
  3. Thickness of the Cloud as a volatility indicator
  4. Building mechanical trading systems with the Clouds & Guppy’s MMAs

DeMark Indicators and Trading Systems

• This session explores the major indicators used by Tom DeMark including:
  1. TD Sequential 
  2. TD Combo
  3. TD Set Up Trend
  4. TD Risk Lines
  5. TD Points
  6. TD Trendlines

Optimization, Curve Fitting, Backtesting and Forward Testing 

• This session examines various methods to ensure the robustness of a mechanical trading system including backtesting and forward testing.  Emphasis will be placed on elimination of suboptimal parameter sets, data integrity issues, liquidity risk as well as various curve-fitting problems (parameter and data curve-fitting). The session closes with an in-depth examination of backtesting and forward testing as well as the development and implementation of trading system “failsafes” based on losses, drawdowns and paradigm shifts.

Trader Psychology and Matching the Trading System to the Trader 

• This session explores trader psychology, the importance of even-mindedness, non-attachment to the trade’s outcome and elimination of conflicting beliefs regarding trading for a living.  In addition, it dispels the myth of trading systems as a, “one size fits all” proposition through a detailed exposition of various long-term, intermediate-term, swing and day trading systems.  Special focus is placed on psychological issues such as, “fading the crowd”, “screen burnout”, “buying new highs” and selling new lows”.  We’ll close the session by examining realistic performance expectations for various systems based on peak-to-valley equity drawdowns, winning percentages, average trade duration, average “flat” time and longest drawdown duration prior to achievement of new equity highs.

Short-term Trading for Professional Speculators 

• In this session attendees will develop rule-based trading methodologies based on cycles in volatility, timeframe divergence, opening range breakouts as well as other strategies and techniques covered in this course.  Attendees will then apply these techniques in a short-term, real-time simulated trading exercise.

Enhancing Performance by Combining Non-Correlated Trading Systems

• The session shows how performance can be enhanced through three types of diversification: asset class, parameter set and trading system.  We then explore the pros and cons of each type of diversification method. Finally, we examine how combining uncorrelated trading systems allows us to expand beyond our natural comfort zones as traders, thereby allowing us to systematically overcome psychological limitations regarding the type of market action we can capitalize on.

Regret Minimization Techniques

• What can we do to make it easier to follow our trading rules?  Since the most common reason traders abandon discipline is regret over losses and /or missed opportunities this session offers various methods to counter these self-destructive tendencies.  Particular emphasis is placed on techniques to minimize regret for trend-following as well as countertrend traders.

Algorithmic Trading 

• We’ll close the course with an introduction to algorithmic trading including its history and evolution as well as where it stands today, its limitations and its future.