Long/Short Market Dynamics: Trading Strategies for Today's Markets
Author(s): Clive M. Corcoran (Author)
Publisher: Wiley
Publication Date: 26 Jan. 2007
Edition: 1st
Language: English
Print length: 358 pages
ISBN-10: 9780470057285
ISBN-13: 9780470057285
Book Description
Hedge funds are now the largest volume players in the capital markets. They follow a wide assortment of strategies but their activities have replaced and overshadowed the traditional model of the long only portfolio manager. Many of the traditional technical indicators and commonly accepted trading strategies have become obsolete or ineffective.
The focus throughout the book is to describe the principal innovations that have been made within the equity markets over the last several years and that have changed the ground rules for trading activities. By understanding these changes the active trader is far better equipped to profit in today’s more complex and risky markets. Long/Short Market Dynamics includes:
A completely new technique, Comparative Quantiles Analysis, for identifying market turning points is introduced. It is based on statistical techniques that can be used to recognize money flow and price/momentum divergences that can provide substantial profit opportunities.
Power laws, regime shifts, self-organized criticality, phase transitions, network dynamics, econophysics, algorithmic trading and other ideas from the science of complexity are examined. All are described as concretely as possible and avoiding unnecessary mathematics and formalism.
Alpha generation, portfolio construction, hedge ratios, and beta neutral portfolios are illustrated with case studies and worked examples.
Episodes of financial contagion are illustrated with a proposed explanation of their origins within underlying market dynamics
Editorial Reviews
From the Inside Flap
Hedge funds are now the largest volume players in the capital markets. They follow a wide assortment of strategies but their activities have replaced and overshadowed the traditional model of the long only portfolio manager. Many of the traditional technical indicators and commonly accepted trading strategies have become obsolete or ineffective.
The focus throughout the book is to describe the principal innovations that have been made within the equity markets over the last several years and that have changed the ground rules for trading activities. By understanding these changes the active trader is far better equipped to profit in today’s more complex and risky markets. Long/Short Market Dynamics includes:
A completely new technique, Comparative Quantiles Analysis, for identifying market turning points is introduced. It is based on statistical techniques that can be used to recognize money flow and price/momentum divergences that can provide substantial profit opportunities.
Power laws, regime shifts, self-organized criticality, phase transitions, network dynamics, econophysics, algorithmic trading and other ideas from the science of complexity are examined. All are described as concretely as possible and avoiding unnecessary mathematics and formalism.
Alpha generation, portfolio construction, hedge ratios, and beta neutral portfolios are illustrated with case studies and worked examples.
Episodes of financial contagion are illustrated with a proposed explanation of their origins within underlying market dynamics.
From the Back Cover
Market forces in the 21st century have become more titanic, diverse, subtle and multi-faceted than ever. Clive Corcoran deftly explains the reasons behind the paradigm shift and offers an abundance of practical ways to combat and profit from it. I was late in submitting these comments because I kept getting sidetracked testing ideas inspired by the text! There’s no need to fear that it’s not you father’s market anymore when you’re armed with this kind of information.” – Art Collins, professional trader, and author of Beating the Financial Futures Market
“Corcoran’s in-depth knowledge of financial markets underlies a talent to express technically advanced concepts in accessible, yet thorough terms. His book is very carefully researched and beautifully written.” – Professor Carol Alexander, Chair of Risk Management and Director of Research, ISMA Centre, Business School, University of Reading
“Clive Corcoran has written an excellent book, backed up by solid research and informative examples. This is one of most illuminating works on trading techniques written in recent years. His incisive commentary of automated trading algorithms alone is worth the cost of the text. This is a must read.” – Alan Farley, Editor/Publisher, Hard Right Edge
About the Author
Clive M. Corcoran has been an active trader for many years on both sides of the Atlantic. He is also a trading software developer and consultant and focuses on risk reduction and market neutral strategies for portfolio managers. He has been a university lecturer in Economics and Statistics, is an acknowledged communicator on the capital markets and has been a featured speaker at trading expos and workshops. Previously he worked in radio broadcasting and was the founder and CEO of a personal and business management company for entertainment professionals that operated in Los Angeles, London and Toronto. Corcoran’s newsletter and daily market analysis are published at http://www.tradewithform.com. He lives in Berkshire, England.
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