Gaming the Market: Applying Game Theory to Create Winning Trading Strategies

by Ronald B. Shelton

Book Overview

Die Spieltheorie betrachtet Entscheidungen als "Schachzüge" in einem Spiel, dessen Ausgang von den Entscheidungen aller Spieler bestimmt wird. Diese Theorie wird hier erstmals auf Investmentgeschäfte am Finanzmarkt angewendet. Nach der Definition der "Spielregeln" und der "Spieler" wird, basierend auf Formeln der Wahrscheinlichkeitsrechnung, ein Spielmodell entwickelt, das die Rentabilität von beliebigen Finanzaktionen wie Aktienkauf und -verkauf...

• Format: Hardcover
• Language: English
• ISBN: 0471168130
• ISBN13: 9780471168133
• Release Date: April 1997
• Publisher: Wiley
• Length: 224 Pages
• Weight: 1.20 lbs.
• Dimensions: 0.8" x 6.0" x 9.3"

Customer Reviews

Something different for the experienced trader

If you're an experienced trader with an aptitude for system development and computer modeling, this book will provide you with a unique perspective on the market. For those who want cookie-cutter shortcuts to trading success, this book is not for you. This book does not contain "cut and paste" formulas for some whiz-bang indicator nor does it include code for TradeStation or MetaStock that you can just plug in and use. Instead, the author presents a different perspective on understanding and analyzing behavior, and although this approach may not represent orthodox game theory, it is a thought provoking approach, especially for someone (like me) who has probably read over a hundred books on trading and technical analysis. You should note, however, that after reading and reviewing the concepts presented herein, applying them will take real effort - I'm not aware of any commercially available trading package that can generate and apply the data used in this approach. Also note that the examples presented in this book relate to day trading although I believe the principles are applicable on any type of market. The major shortcoming of this book is the sparse real-life trading examples - more of those would have been very helpful. Nonetheless, as one veteran trader told me, "Whenever you read a book on trading, if it only gives you one new idea, then it's worth reading." This book is definitely worth reading for the experienced trader.

An Honest Work

This book contains a research work done by a practitioner. It maily used the theory of probability and the assumption of normal or lognormal distribution of the market prices, though with some game theory interpretations. I have to say that it is an honest and interesting work. Also it is inspiring for further study in that direction. There are also some disappointments: i) the mathematics and the overall material are presented poorly; ii) some of the results need more clarification and explanations, and are not complete at the level as published. As ironic as it sounds, I was drawn into reading the book after I read the previous negative reviews on this board. I would say that those comments are either irrelevant, or ignorant. Any one interested in developping a feasible trading system could learn something from this book.

Like math and poker? This one's for you!

I bought this one on an earlier review, "Don't Buy this book". The book is great for mathematically inclined strategists. It is readable and thought provoking. If you are ready to do your own modeling and develop you own trading system, this book is a must.

Do not buy this book

I would prefer it if nobody else purchased this book. My only question is how long it will be before the techniques discribed in this book are discounted by the markets. Fortunately, if you have been banging your head on statistics, time series analysis, neural nets, genetic algorithms, etc. with respect to the markets as long as I have, certain embellishments to the logical principles explained in this work will suggest themselves. In this I take some comfort. I also take some comfort in the fact that not many will recognize these ideas for what they truly are. Congratulations and kudos to Ronald B. Shelton on this work. Of the several hundred books I have on the subject of mathematics and technical analysis of time series this fits in the top 2 or 3. Again, do not buy this book.