by Andrew W. Lo. Lo (MIT, creator of the adaptive market hypothesis) and Hasanhodzic (research scientist, AlphaSimplex) have compiled a series of "conversations" with technical analysts (e.g., Ralph Acampora, Gail Dudack, and John Murphy) who use this type of analysis to develop investment or trading strategies. Since the efficient market hypothesis asserts that the use of technical analysis does not produce superior returns, the technical analysts are the "heretics" of the book's title. In the first part of the book, chapters feature interviews with each analyst and cover similar questions, e.g., "What led to your interest in technical analysis?" or "If all patterns/indicators/strategies are in the public domain, what accounts for your superior returns?" These interviews provide an overview of each analyst's approach. The second half of the book provides the heretics' answers to general topics such as the evolution of technical analysis, the role of emotions, and personal traits (e.g., creativity and skepticism). Successful technical analysts appear to have unique traits that contribute to their success. Whether such success can be transferred to other investors is doubtful, and this is a primary lesson readers should draw from these interesting interviews. --Choice (Check Catalog)
Monday, September 21, 2009
The heretics of finance : conversations with leading practitioners of technical analysis
by Andrew W. Lo. Lo (MIT, creator of the adaptive market hypothesis) and Hasanhodzic (research scientist, AlphaSimplex) have compiled a series of "conversations" with technical analysts (e.g., Ralph Acampora, Gail Dudack, and John Murphy) who use this type of analysis to develop investment or trading strategies. Since the efficient market hypothesis asserts that the use of technical analysis does not produce superior returns, the technical analysts are the "heretics" of the book's title. In the first part of the book, chapters feature interviews with each analyst and cover similar questions, e.g., "What led to your interest in technical analysis?" or "If all patterns/indicators/strategies are in the public domain, what accounts for your superior returns?" These interviews provide an overview of each analyst's approach. The second half of the book provides the heretics' answers to general topics such as the evolution of technical analysis, the role of emotions, and personal traits (e.g., creativity and skepticism). Successful technical analysts appear to have unique traits that contribute to their success. Whether such success can be transferred to other investors is doubtful, and this is a primary lesson readers should draw from these interesting interviews. --Choice (Check Catalog)
