Rocket Science for Traders: Digital Signal Processing Applications

For over a 12 years of my life, I have traded the market as a home gamer. With the advent of Tradingview and other real-time data feeding market software's, I have tested, demo'd and analyzed any and every known trading theory, style, indicator ect. What I always lacked was a pure, mathematical, provable model with a strategy of signal that could effectively describe the information required to know what the current trend is, when it fails and when new trend is forming. Surly using calculus, linear regression models and a variety of fast reacting vs slower reacting formulas could take all that guess work out of the analysis. I know the phycology of the heard market cannot be fully predicted. However, what if I told you mathematically for every trend, pivot, high/low focal point on a chart X being a certain period of time (20), the models and calculations as described by Ehelers can signal a trend confirmation within or at the close of 5bars into the emerging trend. Basically the calculus and formulas keep you in the know of any trend based on the historical most accurate linear regression behavior of any given set of data and you stay in the mathmatically assumption of that trend for 15 out of 20 bars of data. I dont care who you are. This book is what billionaires and hedge funds use to test and program there software's to extrapolate market data and correctly signal the end of current trends and the emergence and confirmations of new trends. Absolutely the holy grail of reverse engineering any strategy in the hopes of maximizing accuracy and thus profit. I wouldn't be surprised if Ehlers had theoretical blue prints for a infinite energy generator or a schematic for a powerplant in a UFO. This is absolutely nerd level science and math but none the less valuable to one who applies the applications of such information.

The contents were too deep for me. I observed the book was well written and presented thecovered material in great detail. It's an excellent read for the right market technician.

5 star no review

Great Book! Reading "Rocket Science for Traders" was like taking a fresh breath of air. I devoured it over one weekend and have read and studied some chapter portions two or three times since my first reading. Over the years I've read most of the best and highly recommended technical analysis books and studied the various indicators that are being used and sometimes touted. However, I have consistently come away feeling that so many people pursuing technical analysis are not very technical at all. For example, a well known and widely used indicator takes the standard deviation of price data and uses it. Price data, however, is not "normal" or Gaussian distributed. Therefore, the standard deviation, as calculated, is mis-applied and what results is not an accurate variance measurement around the price mean or average as it is intended to be.In his book, John Ehlers has provided us, a set of indicators, systems and concepts that are sound conceptually, mathematically and fundamentally proven. The tools that he presents are accepted, in science and engineering, around the world as some of the best that we have in which to model discrete and sampled data systems like the stock market. His book has helped confirm some of my ideas and I have enhanced the effectiveness of my systems with the use of his little and no lag processes and models.I have a strong engineering and math background and the book to me was a "God send" because the theory, examples and EasyLanguage code were all given and well presented. However, I believe a beginner and any serious trader or student will likewise significantly benefit from John's book. That's because its easy to read, i.e., the concepts and applications are clearly explained in plain english. You don't have to do any math or understand the math or derivation concepts to use and apply the indicators and systems. Also, as mentioned above, the EasyLanguage code is provided and also easy to read and understand.

The book introduces a lot of very advanced mathematical techniques (partial differential equations, laplace transforms, fourier transforms) . He does this but does not give adequate support for these techniques. He also only gives limited examples. He really doesn't tie the indicators to real everyday trading. The book isn't really worth it. It is very difficult to use what's in this book, for a broad based system.

I've read lots of books on trading, all of them using the balance between the bulls and the bears, their psicology, who's stronger and how this affects the market. Some of these books are absolutely genial.This book gives a completely new view about the market. At least new to me. Interpreting the market as a signal (just as if it were radio signal, or whatever) and processing the results gives surprising results. In some cases these results are not very different from the traditional indicators, but in others results are incredible. In any case the arsenal of new tools opens possibilities to increase the effectiveness of trading and you can choose which tools fit your trading. You can find at least one, for sure. Well, at least I found some.No panacea here. No miracles. But interesting and effective new point of view and tools.

Very good and highly useful equations applying signal theory to financial time series.

Finally a book on trading that is completely different from all the others I have read. If you are getting the unhealthy feeling that 99% of all the indicators and techniques you are using, or came with your charting package, are minor variations on the same tired theme, then you should get this book.Note: do not be put off by the math in the book. If you just skip what you don't understand, and I skipped a lot, there is enough informative pure text for you to get most of the benefits of the ideas that are put across in this fine text. In addition there are a couple of complete trading systems and a plethora of new and innovative indicators for which you are given the complete TradeStation Easy Language code....

数パーセントのパフォーマンスの為にツールの研磨を欠かさない、ロケット工学まで持ち出して涙ぐましい努力をしています。しかし株価の先行は不可能で予測も出来なく株価ありきなのでツールを鋭くしたところでそれ程の威力を発揮するのであろうかと疑問は残るところではあります。昨今の米国株のロケットのような株価上昇を眼の前にして更なる急上昇になるのか打ち上げ花火のように空前の灯火なのか、眼を離せません。

全く一般向けではないが、ディジタル信号処理にある程度知識がある人には、非常に興味深い本と思う。特に、私の専門である核磁気共鳴（NMR)のデータ処理と似たことをやっているので、この分野の人には楽しい本かと思う。

ほとんどの相場の本は単純な移動平均系の指標や、経験に基づいて作られたRSIやストキャスティクスと言ったオシレーター系の指標を紹介している。多くの本が紹介しているわけで一定の性能を発揮するものではあるが、ロケット工学投資法が提示しているデジタル信号処理のような明確な根拠に基づいた指標はそれらとは一線を画す新世代のものである。　一般的に多用されているインジケーターは、誤解を恐れずに言えば、「オカルト的」なものである。10年以上の手に入れられる限りの株価データで調べてみたが、少なくとも私のやり方では旧来のインジケーターでマーケットから誤差の範囲を大きく超えるような優位な結果を得ることはできなかった。しかし、ロケット工学投資法の技法では、ある種の状況下では優位な状況を引き出すことができた。　私は数学が得意な方ではないが、本書にはトレードステーション用の平易なプログラムが掲載されているため、これをC#に移植して動かしていた。私が読んだ版では明らかなプログラムの間違いもあったが、掲載されているソースを複数突き合わせてみることで修正可能であった。　今後はディープラーニングによる中でなにが起きているのかわからないブラックボックスがマーケットを解析していくことになると思う。そうなるとこのロケット工学投資法の技術自体が時代遅れになってしまうかもしれない。しかし、人間が理解できる明確な理論の下に構築されたマーケットに対して優位なインジケーターがどういうものかを学べる、おそらく唯一の書である本書は色あせないはずだ。