Kaufman's Version: Trading Systems and Methods

Alessandro Salvato
8 set
Tempo di lettura: 2 min

There are books you read for fun.

And then there’s Trading Systems and Methods by Perry J. Kaufman: 1,200+ pages of pure, heavy-duty trading wisdom. A brick. A doorstop. A weapon of self-defense.

But if you’re serious about systematic trading, this is the book you can’t just ignore. Boring at times? Sure. Useful? Absolutely.

🔹 The brutal truth

Kaufman doesn’t sell you tropical-dream lifestyles or yellow Lamborghinis.He sells you formulas, tables, and frameworks that still work when your “secret TikTok strategy” is already dead.

Inside, you’ll find:

Trend following that refuses to die 🏄
Mean reversion for the bounce lovers 🎾
Volatility and breakout systems for chaos fans 💥
Money management, the silent superhero 🦸
Testing and validation, your only defense against overfitting 🔍

🔹 Why it matters

Every time you think you’ve invented something new, Kaufman reminds you he wrote about it 20 years ago.

He doesn’t give you a magic formula. He gives you building blocks. And in systematic trading, that’s the only real superpower.

🔹 Our mission (impossible)

Nobody in their right mind reads this book cover to cover (unless they’re training to be a trading monk).

We’ll use it as an encyclopedia and break it down into digestible posts, like:

Trend Following — surfing instead of fighting the market.
Mean Reversion — when prices miss home.
Breakouts & Volatility — the rock ’n’ roll side of markets.
Money Management — the boring stuff that actually saves you.
Testing — the antidote to luck disguised as skill.

🔹 The takeaway

Trading Systems and Methods isn’t beach reading.

It’s the book that keeps you grounded when the market decides to humble you.

You’ll hate it. You’ll love it. And eventually, you’ll quote it. Always.

🔹 A final note

This isn’t just a book review. Kaufman’s Version might turn into a series of short “pills”—bite-sized posts where we’ll read and break down Kaufman’s Trading Systems and Methods together.

Because let’s be honest: no one wants to face 1,200 pages alone.