Bandy, Howard

Dr. Bandy is uniquely qualified in technical analysis. His education includes university degrees in mathematics, physics, engineering, and computer science. His graduate work focused on modelling and simulation, artificial intelligence, and statistics.  He continued his academic work, becoming a tenured full professor of mathematics and computer science, and university dean. He has experience as a software developer, including the design and implementation of a program to select stocks and issue buy and sell orders. He was a senior research analyst at a Commodity Trading Advisor (CTA) firm, where he held a Series 3 license. He consults with and assists individual traders and trading companies in the design, testing, validation, and analysis of trading systems. Dr. Bandy is the author of several recently published and best-selling books on technical analysis, including ‘Quantitative Trading Systems’, ‘Mean Reversion Trading Systems’, and ‘Modelling Trading System Performance’. His forthcoming book, ‘Quantitative Technical Analysis: An Integrated Approach to Trading System Development and Trading Management’ includes his original work in the area of dynamic position sizing.

You can learn more about his activities, read free chapters of his books, and follow his blog, at www.BlueOwlPress.com.

Defining and managing the use of Monte-Carlo Techniques in the development and analysis of a Trading System. (IFTA Webinar Series)

Dr. Bandy is the author of four recently published and best-selling books on technical analysis, including "Quantitative Trading Systems", "Mean Reversion Trading Systems", and "Modeling Trading System Performance." You can learn more about his activities, read free chapters of his books, and follow his blog, at www.BlueOwlPress.com. Dr. Bandy is presenting a second webinar on August 8th and is presenting at the IFTA 2013

Howard is interviewed by Dallas Brooks compare of the TV Show "Dollars with Sense". Howard puts his opinions about share trading to a general audience.

A detailed guide to the development of trading systems using machine learning. (IFTA Webinar Series)

A detailed guide to the development of indicator based trading systems. (IFTA Webinar Series)

Defining and managing risk in trading system development and trading management. (IFTA Webinar Series)

A presentation about trading systems development delivered to the Seattle Market Technician's Association

Presentation abstract not currently available.

The goal of the developer of a trading system and of the trader who uses it is to have confidence that the signals issued by the system precede trades that provide rewards adequate to compensate for the risk.  The key word is confidence.  The primary limitation is risk.  My presentation is in two parts -- one part for each of the two functions -- trading system development and trading management -- both focusing on that goal.
The trading management presentation will discuss a new and unique Bayesian approach that continually monitors system performance, determines risk of drawdown, assesses the personal risk tolerance of the trader, computes the maximum safe position size, and estimates profit potential.  It includes techniques for determining the health of a system, readjusting the system as necessary, and deciding if and when to take it offline before serious loss of trading capital.

The goal of the developer of a trading system and of the trader who uses it is to have confidence that the signals issued by the system precede trades that provide rewards adequate to compensate for the risk.  The key word is confidence.  The primary limitation is risk.  My presentation is in two parts -- one part for each of the two functions -- trading system development and trading management -- both focusing on that goal.  
This trading system development presentation will discuss measuring success, issue selection, the two components of a trading system (the model and the data), identification of patterns that precede profitable trades, in-sample data analysis, out-of-sample system testing, and methods for validation.

Part Two continues with a demonstration of using the process outlined in Part One to develop a system for trading the broad market US indexes.  The system is profitable in both rising and falling markets, and can be traded from Australia.  Key points include selection of the index to model, selection of the issues to trade, selection of fitness metrics, selection of holding periods, selection of entry techniques, selection of exit techniques, determination of in-sample period length, determination of out-of-sample period length, back-testing, optimization, walk-forward validation, estimate of trading profitability, and trading system life cycle management.

The motivation for this presentation begins with THE question that every trader regularly asks: ?How do I know whether my trading system will be profitable when I finish development and begin trading?? Howard?s presentation addresses this question. Part One discusses the design, testing, and validation of trading systems. Using a systems engineering approach, this part is intended to explain the development process, persuade you of its importance, and inspire you to use it yourself. Key points include selection of the fitness metric, use of in-sample and out-of-sample data, walk-forward testing, and statistical validation.