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Has anyone read both of Pardo's books?

 
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LeviF
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PostPosted: Fri Mar 28, 2008 5:36 am    Post subject: Has anyone read both of Pardo's books? Reply with quote

Does the new one cover the same material as the old?
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Roger Rines
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PostPosted: Fri Mar 28, 2008 9:16 am    Post subject: Reply with quote

His latest book is an update and expansion of his first publication, "Design, Testing, and Optimization of Trading Systems". This edition is less cryptic because it provides broader explanations of why he is presenting his ideas making the material more available for the less experienced.

What he doesn't do well is present solid supporting details to ensure his ideas get accepted. Even still, what he advocates are important practices to follow, but I wish he had spent time proving his ideas and providing examples. Not providing examples assumes the reader can grasp the mechanics of his approaches, which might not be the case for everyone.

In more than a few places the text seems to drone on more than necessary indicating his editor doesn’t understand the principles published by William Zinsser in his book "On Writing Well". Experienced system builders and traders might find the added text distracting, but it is easy enough to skip over and not loose track of his points.

I have no regrets with the cost and time invested in reading his work, because it is important to system building.

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LeviF
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PostPosted: Fri Mar 28, 2008 9:26 am    Post subject: Reply with quote

Thanks Roger. Would you suggest a person buy one or both of the books?
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Roger Rines
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PostPosted: Fri Mar 28, 2008 10:03 am    Post subject: Reply with quote

If you've got the money, maybe, but I don't know of a substantive reason. After seeing your question I browsed through his first book and found a lot of the same information. For certain it had better editing under Perry Kaufman, which makes his points quicker to grasp if you know where he is going and why, but that writing is what got his first book complaints from less experienced traders.

Maybe you should take a peak at the first book on Google here: Design, Testing and Optimization of Trading Systems. It doesn’t have many pages and the scanning is only fair, but you’ll get a feel for the cryptic nature and content of his first book.

His second book is an extended swing way to the opposite side of cryptic. You can peak in a more restricted way at his current book on Amazon.

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sluggo
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PostPosted: Fri Mar 28, 2008 10:24 am    Post subject: Reply with quote

People who have performed lots of system tests using Trading Blox, and studied lots of Blox output runs, and optimized system parameter values with Blox, are going to find Pardo's first book rather disappointing. (I haven't seen the second book so I have no opinion about it.)

Pardo's first book (copyright 1992) is handicapped by the fact that Pardo himself was selling system test software called Advanced Trader (now obsolete), and he only wrote about things that Advanced Trader could do. And it couldn't do much, unfortunately. It was a classical early-1990's tester that limited you to one market, one system, one contract. You couldn't test on portfolios, you couldn't test on suites of systems, you couldn't test using anti-martingale positionsizing (the most famous example of which is Fixed Fractional). So, Pardo didn't write about these things.

But Blox users today in the year of our lord 2008, are accustomed to all of these features. They are assumed to be part of trading system design and testing. So when Pardo leaves them out, readers familiar with Blox will be frustrated.

There are still some great ideas in Pardo I, but I'm afraid they are lonely islands in a sea of mediocrity. "Perfect Profit" is one great idea. "Linear Regression of the equity curve" is another. The book may have been nearer to the state of the art when it was first published, in 1992, but it is woefully outdated and basically obsolete today. You can learn a lot more from the user guides of modern testing software like Blox, Recipes, AmiBroker, Wealth-Lab, Mechanica, PowerST, and so forth.

Finally, it should be noted that the TITLE of Pardo's first book was strongly criticized: Design, Testing, and Optimization of Trading Systems. It was criticized because, despite the title, the book itself says nothing about Design of trading systems. Zip, zilch, nada, bupkis. Nothing. I only mention this because if you look very carefully at the new book (link), it omits the word Design from the title. Hmmm, think about that.
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Turtle40
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PostPosted: Fri Mar 28, 2008 11:30 am    Post subject: Reply with quote

Hi Levijean,

I have read both books and agree with the above comments. His writing style can be very verbose in places but I still learnt things so it was worth the read.

If you are interested I have a second copy of the new book (due to an ordering mistake) which is unwrapped and untouched. If you would like it for a knock down price, pm me and we can do a deal.
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blinkybill
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PostPosted: Wed May 21, 2008 9:52 pm    Post subject: Reply with quote

I have read the new book and have got to say it could have been written in 2 chapters instead of a whole book. That aside I would like to know if anyone has a blox for the ranking measures he suggest, Perfect profit and PROM?
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Roger Rines
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PostPosted: Thu May 22, 2008 6:50 am    Post subject: Reply with quote

I don't have those items working in Trading Blox yet, but I have them in other software. At some point I'll move them to TB and see if I can create an additional TB Stat item.

Until then I use the Perfect Profit value results of each data file as a plug number, which changes after each update. Because this number changes I do my development testing on static data files to keep the process stable.

Perfect Profit is also dependent on whether the underlying data is daily, weekly or monthly. In my case I create the PP number using daily data. Daily data results are used because all my signals are applied to daily data even when weekly data is generating the signals, controlling the stops and making equity decisions.

When I move the process to TBB, I'll use the SwingHigh/SwingLow (both price and bar) functions in TBB, and store the pivot points into arrays for summation.

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blinkybill
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PostPosted: Thu May 22, 2008 12:51 pm    Post subject: Reply with quote

Rojer. I appreciate your response. From what you say and other posts of yours I have read it sounds like you are the "godfather" of the custom Blox! Keep up the good work.
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