Very easy reading. You will find this book quite useful if you are trading using a mechanized approach via a platform such as TradeStation. You will also find it useful if you are developing software like TradeStation that backtests trading strategies. This is why I read the book.

In part one, he describes his testing methodology and discusses the building blocks that make up the strategies that he discusses later. For example, moving averages, channel breakouts, momentum, etc. are discussed under trend following techniques and relative strength index stochastics, and MACD under price oscillators. Most importantly, he describes how to use statistical measurements to analyze the performance of a strategy.

In Part 2, he presents his results of testing the following strategies:

Channel Breakout
Dual Moving Average Crossover
Momentum
Volatility Breakout
Stochastics
Relative Strength Index
MACD

followed by some of his ideas and innovations that improve upon them. He uses 12 years of daily price data (1990 - 2001) and each strategy tests 29 different futures contracts along with 34 different stocks. He also discusses money management, which is must reading.

Although he does not provide any code (which I would have liked to have seen), he does give enough information so that you can implement any of these strategies in TradeStation or any other strategy back testing software, assuming that you have some knowledge of basic programming.

I would have liked to have seen some strategies dealing with pure price patterns. Other than that, a very well organized and thought out book. My rating for this book is 4.5 stars.

I agree with the reviewer below. This book did not give many pure mathematical ideas. He gave some good examples that may be helpful to some but not to people who are looking for good solid mathematical strategies.

If you are just getting interested in quantitative strategy development I would suggest the book.

This is probably a book for ordinary investors, but certaily not for "Quant". The book is definitely very easy to follow. However, other than a few technical analysis tools, Kestner didn't really address quantitative investing. He just provided a few computer printouts for a few technical strategies - no fundamental data or "real" quantitative tools were ever used. If you don't have the math/statistics/finance backgroud, but want to learn how to systematically use technical analysis, buy this book. For serious Quants, don't worry about it.

Worth the money, as the book provides an in-depth explanation about money management and risk. It is also very well written with good illustrative examples and easy to follow.

It also provides great ideas to trading systems and very insigthful information on how to analyze trading performance. The great advantage of this book is that it actually explains the assembling of a trading system from concept to an actual trading tool. However, it lacks explanation on real-trading, commission and slippage issues.

I like the book due to a defined and well ordered stream of information. Perry Kauffman's trading system book is the complete opposite of Kestner's work. Despite Kauffman's solid knowledge, his writing is so hard to follow to the point that some sentences provide a double meaning interpretation. The information is also shuffled and disorganized to the point of addressing some unnecessary issues.

Kestner's work is much more enjoyable...