trading-book-library

Consolidated trading knowledge from 62 books covering technical analysis, quantitative methods, behavioral finance, risk management, and systematic strategies. Use when analyzing markets, developing trading systems, or applying frameworks from classic trading literature.

Plato-1@plato-1

Install

openclaw skills install @plato-1/trading-book-library

Trading Book Library

Condensed wisdom from 62 trading books (17MB, 3M words). Extracted frameworks, principles, and techniques.

Core Frameworks

The Turtle Trading System (Turtle Trader, Way of the Turtle)

Entry: 20-day breakout (buy above 20-day high)
Exit: 10-day breakout in opposite direction
Position sizing: ATR-based, risk 1-2% per trade
Pyramiding: Add at 0.5 ATR intervals, max 4 units
Principle: "Trade what you see, not what you think"

Risk Management (Trading in the Zone, Market Wizards)

Core rule: Never risk more than 1-2% on any single trade
R-multiple: Every trade expressed as risk/reward multiple
Expectancy: (Win% × Avg Win) - (Loss % × Avg Loss)
Drawdown management: Scale down at 20% DD, stop at 30%
Principle: Mark Douglas: "Anything can happen"

Candlestick Patterns (Beyond Candlesticks, Encyclopedia of Chart Patterns)

Reversal: Hammer, Shooting Star, Engulfing, Morning/Evening Star
Continuation: Three White Soldiers, Rising/Falling Three Methods
Indecision: Doji (Dragonfly, Gravestone, Long-legged)
Confirmation: Always wait for next candle to confirm
Principle: Nison: "The market is a discounting mechanism"

Volume Price Analysis (Anna Coulling)

Key signal: Volume confirms price — high volume + price move = valid
Testing: Low volume on pullback = healthy, high volume = distribution
Climax: Ultra-high volume + narrow range = exhaustion
Principle: "Volume precedes price"

Market Wizards Principles (Schwager)

Have a method: Every wizard had a specific, repeatable edge
Cut losses: "Losers average losers"
Let winners run: "It's not whether you're right, it's how much you make when you're right"
Risk management is primary: Position sizing > entry timing
Discipline over intelligence: Emotional control beats IQ
Adapt or die: Markets change, methods must evolve

Behavioral Finance (Fooled by Randomness, When Genius Failed)

Survivorship bias: We only see the winners, not the thousands who failed
Black swans: Fat tails are real; prepare for the impossible
Overconfidence: Most traders overestimate their edge
Principle: Taleb: "Never cross a river that is on average 4 feet deep"

Ichimoku Cloud (Trading Ichimoku)

Components: Tenkan-sen (9), Kijun-sen (26), Senkou Span A/B (52)
Bullish: Price above cloud, Tenkan > Kijun, future cloud green
Bearish: Price below cloud, Tenkan < Kijun, future cloud red
Kumo twist: Senkou A crossing B = trend change signal

Buffett/Graham Value Investing (Intelligent Investor, Buffett Essays)

Margin of safety: Buy below intrinsic value
Circle of competence: Only invest in what you understand
Mr. Market: Use volatility, don't be used by it
Long-term: "Our favorite holding period is forever"

Key Principles Cross-Referenced

Position Sizing

Source	Rule
Turtle	2% risk per trade, ATR-based sizing
Market Wizards	Bet more when conviction is higher
Van Tharp	R-multiples, position size = risk / stop distance

Stop Loss Placement

Source	Method
Technical Analysis	Below support / above resistance
Turtle	2× ATR trailing stop
Elder	"SafeZone" — dynamic ATR-based

Exit Strategies

Source	Method
Turtle	10-day low breakout
Minervini	Moving average crossover + volume climax
O'Neil	20-25% profit target, 8% stop

Anti-Patterns to Avoid

Averaging down (losers average losers — Paul Tudor Jones)
Over-optimization (curve-fitting to historical data)
Ignoring correlation (multiple positions in same sector = hidden risk)
Position size drift (letting winners become oversized)
Revenge trading (trading to recover losses)
Analysis paralysis (too many indicators, no action)
Premature profit-taking (cutting winners short)

On-Demand Chapter Lookup

The full extracted text (17.65MB, 62 books) is available at: C:/Users/ARTHUR~1/AppData/Local/Temp/book_skill_work/full_text.txt

Use search_files(pattern="book_name", path="C:/Users/ARTHUR~1/AppData/Local/Temp/book_skill_work") to find a book's SOURCE header, then read_file with offset/limit to stream chapters into context. Each book is marked by its ==== SOURCE: filename.txt ==== header.