Combining the Science of Technical Analysis with the Art of Reality-Based Trading

T his is not your ordinary “get rich quick” book about trading the stock market. Rather, it is a guide to a multimedia approach to learning and trading, using the Applied Reality Trading
R (ART
R ) method of

trading. This book and the accompanying DVD explain the concepts and

methodology. In addition, the purchase of this book includes a one-month

time frame in which to actually learn to trade the system and apply it in real

time. This is done by including the ART software for one month, including

access to live streaming data and access to a few, designated brokerage

firms that can trade directly through the software. In essence, everything

that the reader needs—for learning and for seeing how the system works

in actual markets—is included with this book.

The ART trading methodology is built on software recognition of several time-tested patterns that can be easily identified for the user. While

they are called specific names in the software, these are essentially breakouts and reversals—the meat and potatoes of technical trading. The chart

patterns identified can be applied to any type of bar chart—daily, fiveminute, weekly, and so on. Moreover, they can be applied to stocks, futures, indices, and forex—or any other market that can be charted.

What separates this methodology from many other computergenerated trading systems is that this is not a 100 percent mechanical

“black box” system. Rather, this book (and the multimedia associated with

it) teach the individual how to apply the various trading signals to the style

of trading with which he feels most comfortable. Position traders can trade

the trend signals from the software, while short-term swing traders may

prefer to take minor signals generated along the way—even trading within

a trend, if desired. If you are uncertain which trading style might best suit

you, the “ART Profile” exercise in this book will aid you in determining the

style best suited to your personality.

Risk control is stressed throughout—determining effective position

size, setting stop-loss exits, and more. Exact entry and exit points are given

with the signals, so that you can judge your risk beforehand, and therefore

determine position size as well. One of the many unique features is that

stops are based on market conditions (chart patterns and volatility) as opposed to an arbitrary dollar amount. Therefore, the stops are more logical

in terms of market mechanics, which prevents one from being stopped out

prematurely, as might happen with “percentage risk” stops.

Finally, the techniques can be applied to option trading as well. I have

long espoused the idea that any successful stock trading technique can be

translated into a profitable option trading strategy, as long as one acts rationally in choosing the expiration month and striking price of the options

to be purchased.

This multimedia approach to learning may be new to many readers, but

the concepts and techniques associated with the ART software are wellsuited to such an approach, and the benefits should be great for those who

are willing to embrace the ART methodology and fit it into their “trading

personality.”