Guide To the 8 Best Books on Systematic Trading

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In this video, we present a selection of books on systematic trading that every trader should have in their library.

The 8 selected texts are true cornerstones of trading literature and were written by industry experts.

In the selection, you'll find books like Trading Systems and Methods by Perry Kaufman, a true encyclopedia on trading, and Systematic Trading by Robert Carver, a former hedge fund manager who discusses the systematic approach to long-term trading.

Among the recommended texts are books suitable for more experienced traders, such as Volatility Trading by Euan Sinclair, which helps explore the opportunities offered by volatility-related instruments.

The selection also includes some entertaining and educational reads, such as the fascinating A Man for All Markets, the autobiography of American math professor Edward O'Thorp, who built a fortune by applying statistics to.

In short, we have selected books to suit all tastes! If you want to learn more about these 8 best books on systematic trading, don't miss this video!

Enjoy the video and happy reading!



Hello and welcome to this brand new video.

What are the most interesting trading books?

For those of you who are new to this field we're going to recommend some of the best books on trading, focusing primarily on systematic trading.

Before we do that, though, if you want to receive the PDF where we discuss these books in more detail, just leave a comment below this video with the word “BOOKS”.

One of the coaches at the Unger Academy here.

Alright, so where to start? Well, after careful consideration, we came up with a book we think every systematic trader should have.

#1 Trading Systems and Methods - Kaufman

Let us talk about Perry Kaufman's "Trading Systems and Methods," now in its sixth edition, so it can be considered a fundamental stepping stone in the trading world.

It is, basically, a true encyclopedia of trading. In this book, you’ll find various trading methodologies.

The author is knowledgeable in so many areas that even though he focuses on systematic trading, his book is considered a kind of trading bible.

This book is full of examples and EasyLanguage code. There are a lot of statistical studies, indicators, and trading systems, and I think you'll find it very interesting.

#2 Systematic Trading - Carver

Now for the second book, Robert Carver's “Systematic Trading”.

The author is a renowned hedge fund manager, so it's written by someone who knows what he is talking about.

Now I must admit that when this book first came out, I believe it was around 2015, it did not excite me that much when I first read it.

The reason is mainly because the trading that the author proposes is very different from the kind of trading that we teach here at Unger Academy.

Although this is a book that studies trading using a systematic approach, it needs to be said that this approach is more long-term, based on his experience of trading within hedge funds, and it's difficult for these large institutions to time the markets, so short-term trades are less common, especially in significant funds.

So, it is a different way of trading than what we teach here and, you know, what I personally prefer.

Anyway, it's a solid book on systematic trading that deals in an intellectually honest way about what is and is not possible to achieve in terms of results.

Topics covered range from volatility in the context of trading systems, the statistical validity of tests, overfitting, and the importance of diversification.

In addition, the author also offers two of his proprietary strategies, which are explained in great detail, so definitely a plus for anyone interested in this type of trading.

#3 Trading in the Zone - Douglas

Let’s switch genres now and move to Mark Douglas' "Trading in the Zone." We are in the realm of trading-related psychology now.

This is an area where you can find undoubtedly many books, many of which I’d personally say are of little value, precisely because people often overlook the statistical advantage, which is indispensable to succeed in the markets, and instead put too much emphasis on the psychological aspect, which certainly has its importance, but without a real advantage or a method in the markets, it's just not possible to make money.

If you stay in this area, this is definitely an interesting book. The focus is on the negative impact that our emotions can have on our daily actions.

In this book, the author makes a clear distinction between a novice trader, who is basically at the mercy of his emotions, and a profitable trader, who is able to deal with his emotions (especially negative ones) properly, especially the emotions associated with loss. An experienced trader can accept those losses, manage those emotions, understand that they are part of the game, and stick to the trading plan, which is of course the most important thing.

Loss management and the importance of having a plan and following it shouldn’t be taken for granted, especially for beginners. A lack of experience and unmanaged emotions can have a strong impact on our trading activities.

#4 Volatility Trading - Sinclair

Let's change genres now and turn to the field of volatility trading. For this reason, I'd like to suggest a book that impressed me when I first read it. It's called "Volatility Trading" by Euan Sinclair.

The focus in this book is, of course, volatility. And it is a fascinating book, but I must admit it is a little complex. I had quite a bit of trouble understanding the concepts at first, but once I cracked it, I have to say it opened up new horizons for me.

The focus on volatility concerns instruments such as options and implied volatility derivatives, so VIX Futures or ETNs that are linked to volatility. And as I told you, it can open up new trading horizons because they are particular instruments that are undoubtedly risky, but they offer opportunities that you can’t find in other fields.

#5 Dual Momentum - Antonacci

For those more interested in classic long-term investing, I would suggest "Dual Momentum Investing" by Gary Antonacci.

This is a very simple book focusing on long-term investing, but with a systematic approach. In the text, you will even find backtests, which are not so common in the field of investing.

The author proposes a trend-following method applied to instruments such as ETFs, which are thus accessible to everyone and have the great advantage of having very low management fees.

The book is straightforward and clear, even for those who have never traded. That is one of the reasons why I'm suggesting it to you.

The author chares completely in the text the trading rules for replicating the strategies shown in this book. So I really recommend it.

#6 Hedge Fund Market Wizards - Schwager

As the summer approaches, I thought of a few books that are a little easier but still deal with trading and leave you with something tangible, so, you know, not just a waste of time to read on the beach.

So, I suggest "Hedge Fund Market Wizard" by Jack Schwager, one of the best-known authors in the field of trading, especially in trading stories.

In this book, he interviews top hedge fund managers, and I must say through these interviews, you can learn a little bit more about this world, get behind-the-scenes, look at this industry, and also get some useful insights.

Different types of operations are compared and presented in a very compelling way.

In the book, you will find that successful approaches can be very different. All of these have in common good habits, such as careful risk management, psychological well-being in trading style, or the fact that you must learn from the mistakes you inevitably will make during trading.

#7 A Man for All Markets - O.Thorp

So sticking with a little bit lighter reading, by the pool or the beach this summer, I'd like to suggest one of the books that impressed and engaged us the most because it is a very engaging story.

It is the true story of Edward O'Thorp, and the title of the book is "A Man for All Markets."

It's an autobiographical book the focus of which is always on trading stories, and it is the experience of an American mathematician professor who goes from gambling to trading.

He used methods that enabled him to turn the odds in his favor, even when gambling. He was one of the first to invent a simple method of counting cards in blackjack and to take advantage of the inefficiencies of some roulette machines. Look, I don't want to give too much away. So, I want to just stop talking about the book right there.

It is interesting to understand how mathematics and trading are connected, so much that he was able to make a fortune in the markets. He was able to exploit, withing a reasonable range, the inefficiencies in the markets, and used them to his advantage. And he did this long before Black and Scholes, who won the Nobel Prize for their formula on option pricing.

It's a truly compelling story of a brilliant mind.

#8 The Successful Trader’s Guide to Money Management - Unger

Now we come to the latest book, "The Successful Trader's Guide to Money Management: Proven Strategies, Applications and Management Techniques" by Andrea Unger. For those of you who don’t already know, Andrea Unger not only won the World Cup Trading Championships 4 times but is also the author of one of the milestones in Money management.

So, a book that has been translated into different languages, has become a bestseller over the years and is considered by everyone in the industry to be indispensable when it comes to Money management.

In the book, Andrea describes several operational methods for calculating the correct position sizing, namely, how much capital should be used in individual trades.

Money management is an essential aspect of managing the risk one faces when trading in the financial markets.

Most traders focus on identifying the best operational setups, which is undoubtedly important, but the risk and money management aspect is often overlooked.

The book is full of practical examples to help the reader understand in detail the various methods presented, and finally, it includes suggestions for building and designing trading systems.

And these are the reasons why it has become a fundamental cornerstone for money management over the years.


If you want to learn more about these books, you can request the PDF we have prepared for you, including a description of each one.
Just leave a comment with the word "Books."

On the other hand, if you are interested in learning more about how we teach trading using Andrea Unger's method here at the Unger Academy, I recommend clicking on the link in the description below.

From there, you'll be able to get a free copy of Andrea Unger's other best-selling book "The Unger Method," where he explains step-by-step how his trading method works, and that's the method he used to win the World Cup Trading Championships four times.

The book is free, and you only have to pay the shipping costs to get it.

You can also use the same link to access a free presentation by Andrea Unger or book a free strategy consultation with one of our tutors.

Well, that's it for today! Thanks very much for watching and I will see you soon in our next video. Goodbye for now!

Need More Help? Book Your FREE Strategy Session With Our Team Today!

We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.

Andrea Unger

Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.