1. Introduction

I write this book to describe and test the concepts I use in my favorite investment and trading strategies. These concepts are not new by themselves but are newly applied to these strategies and should become the basis for the honest study of all stock-picking methods. I use the walk-forward method of optimizing all strategies as this is to me the best and most realistic means of testing and analyzing an algorithmic system. More about the specifics of these concepts and how they work follows in the succeeding chapters as I progress through the particulars of these systems. I explain what I believe to be the only way that the uninformed, disconnected, otherwise busy, time-limited, poorly financed, stock market outsider can still ...

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