Everything you need to pass Level III of the CMT Program
CMT Level III 2018: The Integration of Technical Analysis fully prepares you to demonstrate competency integrating basic concepts in Level I with practical applications in Level II, by using critical analysis to arrive at well–supported, ethical investing and trading recommendations. Covered topics include: asset relationships, portfolio management, behavioral finance, volatility, and analysis. The Level III exam emphasizes risk management concepts as well as classical methods of technical analysis.
This cornerstone guidebook of the Chartered Market Technician® Program will provide every advantage to passing Level III CMT Exam.
Table of Contents
About the CMT Association ix
What Is the CMT® Program? xi
How This Book Was Created xiii
Preface xv
SECTION I Risk Management 1
Chapter 1 System Design and Testing 3
Charles D. Kirkpatrick II and Julie R. Dahlquist
Chapter 2 Money and Portfolio Risk Management 31
Charles D. Kirkpatrick II and Julie R. Dahlquist
Chapter 3 System Evaluation and Testing 53
Perry J. Kaufman
Chapter 4 Practical Considerations 126
Perry J. Kaufman
Chapter 5 Risk Control 169
Perry J. Kaufman
Chapter 6 Statistical Analysis 238
David Aronson
Chapter 7 Hypothesis Tests and Confidence Intervals 283
David Aronson
SECTION II Asset Relationships 315
Chapter 8 Regression 317
Markos Katsanos
Chapter 9 International Indices and Commodities 325
Markos Katsanos
Chapter 10 The S&P 500 351
Markos Katsanos
Chapter 11 European Indices 366
Markos Katsanos
Chapter 12 Gold 374
Markos Katsanos
Chapter 13 Intraday Correlations 390
Markos Katsanos
Chapter 14 Intermarket Indicators 399
Markos Katsanos
Chapter 15 A Unique Way to Visualize Relative Strength 421
Julius de Kempenaer and Mathew Verdouw, CMT, CFTe
SECTION III Portfolio Management 457
Chapter 16 Fact, Fiction, and Momentum Investing 459
Clifford S. Asness, Andrea Frazzini, Ronen Israel, and Tobias J. Moskowitz
Chapter 17 Analyzing the Macro–Finance Environment 484
Robert A. Weigand
Chapter 18 Portfolio Risk and Performance Attribution 518
Robert A. Weigand
SECTION IV Behavioral Finance 565
Chapter 19 Behavioral Biases 567
Michael M. Pompian
Chapter 20 Investor Psychology 584
Mark Andrew Lim
Chapter 21 Are Two Heads Better Than One? 596
James Montier
Chapter 22 The Anatomy of a Bubble 604
James Montier
Chapter 23 De–Bubbling: Alpha Generation 616
James Montier
Chapter 24 Behavioral Techniques 638
Perry J. Kaufman
SECTION V Volatility Analysis 669
Chapter 25 The VIX as a Stock Market Indicator 671
Russell Rhoads
Chapter 26 Hedging with VIX Derivatives 687
Russell Rhoads
Chapter 27 Advanced Techniques 701
Perry J. Kaufman
SECTION VI Classical Methods 749
Chapter 28 Pattern Recognition 751
Perry J. Kaufman
Chapter 29 Multiple T ime F rames 777
Perry J. Kaufman
Chapter 30 Candlestick Analysis 789
Mark Andrew Lim
Chapter 31 Progressive Charting 838
Steve Nison
Chapter 32 Bringing It All Together: Real–World Charts 879
Steve Nison
Chapter 33 Conclusions 905
Richard J. Bauer Jr. and Julie R. Dahlquist
