The Ultimate Trading Guide

By John R. Hill, George Pruitt, and Lundy Hill

Quick Summary

A comprehensive guide to developing mechanical trading systems covering market stage analysis, Elliott Wave applications, bar chart patterns, channel trading, swing trading, pattern recognition, Drummond Geometry, and systematic backtesting.

Executive Summary

"The Ultimate Trading Guide" is written by John Hill (President of Futures Truth, the leading newsletter for analyzing and rating trading systems), George Pruitt (Director of Research), and Lundy Hill. The book provides traders with the tools needed to develop systems based on sound logic, covering principles behind trading systems, operation across accounts of all sizes ($10,000 to $1,000,000), backtesting methodology, short-term market timing techniques, and specific trading strategies with detailed entry/exit rules.

Key Concepts and Frameworks

1. Market Stage Analysis -- The "Big Picture" framework for identifying market phases and appropriate strategies.
2. Elliott Wave Practical Applications -- Simplified, actionable approaches to wave counting for targeting major moves.
3. Bar Chart Patterns -- Three-Day Equilibrium Reverse, Pattern Gap, Hook Closing, Narrow Range Bars, and other specific setups.
4. Channel and Trendline Trading -- Systematic approaches to trading channels and the 0-2 line.
5. Swing Trading -- Anticipation, pullback buys, trend continuation, and three drives to a bottom.
6. Drummond Geometry -- Introduction to PLdot and Ted Drummond's unique analytical framework.
7. Mechanical System Development -- Principles for building, testing, and deploying algorithmic trading strategies.

Conclusion

"The Ultimate Trading Guide" is particularly valuable for its realistic assessment of trading system development, drawing on Futures Truth's extensive experience testing and ranking commercial trading systems.