Smarter Trading: Improving Performance in Changing Markets

McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide

successful trading system development requires a firm grasp of financial markets, statistics, and clever computer programming and Mr. Kaufman offers a little taste of each to his readers. The chapters on "market reality", "risk and return", "trend following" and "robustness testing" are well written and very helpful, while sections on "neural networks", "fuzzy logic", and "expert systems" are basically filler material and of not much practical use. All said, it is one of the better books on the subject.

The person who said that Kaufman does not believe in stop losses is quite INCORRECT. The whole purpose of this book is to weigh a stop loss against a possible incorrectly placed volatile sale.
If anyone trades with a regular basis they know the horror of being 'stopped out' because of volatile price swings. Kaufman helps by correclty analyzing the benefits of stops vs losses showing how mechanized systems for stops have their own pitfalls.
Kaufman's whole treatise on RISK is really worth the price of the book. Understanding risk and it's effect on your psychology is an important and very valuable treatise. Kaufman does a very good job on the subject. Also of benefit, is the Adaptive Moving Average algorithm. While this is also part of Metastock
having the formula is invaluable for those of us who want to modify it.
The weakest part is the computerized system analysis at the end is old and rather simplistic; I would not recommend it. Some of the ideas are interesting but Pardo's book is much much better.