The Heretics of Finance: Conversations with Leading Practitioners of Technical Analysis

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Wiley, May 20, 2010 - Business & Economics - 331 pages
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The Heretics of Finance provides extraordinary insight into both the art of technical analysis and the character of the successful trader. Distinguished MIT professor Andrew W. Lo and researcher Jasmina Hasahodzic interviewed thirteen highly successful, award-winning market professionals who credit their substantial achievements to technical analysis.†The result is the story of technical analysis in the words of the people who know it best; the lively and candid interviews with these gurus of technical analysis.

The first half of the book focuses on the technicians' careers:
  • How and why they learned technical analysis
  • What market conditions increase their chances of making mistakes
  • What their average workday is like
  • To what extent trading controls their lives
  • Whether they work on their own or with a team
  • How their style of technical analysis is unique†

The second half concentrates on technical analysis and addresses questions such as these:

  • Did the lack of validation by academics ever cause you to doubt technical analysis?
  • Can technical analysis be applied to other disciplines?
  • How do you prove the validity of the method?
  • How has computer software influenced the craft?
  • What is the role of luck in technical analysis?
  • Are there laws that underlie market action?
  • What traits characterize a highly successful trader?
  • How do you test patterns before you start using them with real money?

Interviewees†include:
Ralph J. Acampora, Laszlo Birinyi, Walter Deemer, Paul Desmond, Gail Dudack, Robert J. Farrell, Ian McAvity, John Murphy, Robert Prechter, Linda Raschke, Alan R. Shaw, Anthony Tabell, Stan Weinstein.

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Review: The Heretics of Finance: Conversations with Leading Practitioners of Technical Analysis

User Review  - James - Goodreads

After reading the book, I felt embarrassed that I asked the library to buy it. Read full review

About the author (2010)

Andrew W. Lo is the Harris & Harris Group Professor of Finance at the MIT Sloan School of Management and the director of MITís Laboratory for Financial Engineering. His previous books include The Econometrics of Financial Markets, A Non-Random Walk Down Wall Street, and Hedge Funds: An Analytic Perspective. He is also the founder and chief scientific officer of AlphaSimplex Group, LLC, a quantitative investment management company based in Cambridge, Massachusetts. †

Jasmina Hasanhodzic is a research scientist at AlphaSimplex Group, LLC, where she develops quantitative investment strategies and benchmarks, including the CS 130/30 Index. She received her PhD from MITís Department of Electrical Engineering and Computer Science, where she proposed new methods for automating technical analysis and replicating hedge fund betas. Her work has appeared in the Journal Of Investment Management and Institutional Investorís Alpha magazine. A summa cum laude graduate of Yale College, Hasanhodzic is a recipient of a number of awards for academic excellence and a member of several honor societies, such as Sigma Xi, the Scientific Research Society.

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