Does anyone ever read the three famous Al Brooks's books (Trading Price Actions Trends / Reversals / Trading Ranges) ? what do you think about these three books and I am wondering if we can derive some algo from these three books ?
Hi again Tony Chang,
Actually there are 4 books by Al Brooks; the first one he subsequently expanded into the 3 volumes that you mention.
What do i think about them? When I first read them, i did not much like Brooks writing style which is pedantic to say the least. In fact i thought they were among the most tedious and boring books i had ever read. I probably would not have even continued reading, were it not for the fact that the person who recommended them to me is one of the world leading authorities on trading system development. So i continued slowly grinding my weary way through Brook's books. But gradually i started to see what Brooks was on about and why he writes in the way he does, and then something really clicked for me and i couldn't put the books down. I have since come back to read these books again and again. Now I think they are excellent, even though although it was an effort to get to that point.
I have tried out Brook's ideas in discretionary day trading and been amazed at how good the results were. The only reason i haven't continued with that style of trading is that actually i prefer to do other things with my life rather than sit and watch prices tick by, bar-by-bar.
Now IF you can read and fully digest Brook's ideas and then actually manage to "algorithmize" them, then great!! I have thought about it lot and made a serious start trying to do it (not in python but in a language i am more familiar with), but i have not been successful with it, and i don't know (or even know of) anyone else who has done it either. One of the biggest hurdles is that Brooks makes heavy use of trend lines. Although it's not hard to automate trend-line construction, actually it is surprisingly difficult to automate trend lines really WELL, in a way that is fully the equal of what can be done by eye by a proficient human trader.
If you can manage to do a really GOOD job of automated trend-line construction, then I think there is hope , and at that point i would certainly be very happy to pick up on this again with you or anyone else. Best of luck!
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