Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis

Mechanical Trading Systems by Richard L. Weissman connects the design of objective trading rules with the psychological demands of following them. It examines trend-following and mean-reversion models, then considers backtesting, optimization and the risks of curve-fitting. Expectancy, drawdowns, volatility-based position sizing and layered risk controls help frame the evaluation of a system. Weissman also discusses trading stress and the behavioral discipline needed to execute a mechanical approach consistently. It suits intermediate and advanced traders and systems developers who want to study both strategy construction and the human decisions that affect implementation. It pairs well with our guides on technical analysis, trading psychology and risk management.