Trading Chaos – Maximize Profits with Proven Technical Techniques – by Justine & Bill Williams

2008, 302 pages, by Bill Williams and Justine Gregory-Williams

Pretty decent book. I’ve already read the original version from 1994 in which Bill was using the very well known indicators called Alligator, Awesome Oscillator, Accelerator and the Fractal.

The first part of the book is very enjoyable, where he presents us with trading psychology, introduction to Chaos Theory, non-linear systems (for a layman audience, pretty easy to understand), and the second part is the technical one where he presents in a very structured way how he supposedly trades the markets.

Well, as I’ve seen Bill Williams videos from the past and now reading this book, he has a tendency to twist some ideas and concepts and turn them into his benefit. Take the “fractal” term used extensively around the book, and all the Chaos and non-linear pages just to present us at the second part of the book with a almost-simple mechanical trading system? So, be careful and backtest a lot this trading system, because it is from 1994, with the dangerous addendum of counter-trading…

Also his assumption of how a reversal candle is formed a dangerous approach even for Swing Traders…

Great promise, little delivery…

#AtYourOwnScrutinyAndBacktest

😉