Systematic Advantage #43: Systems make it easy to react when you're filled with fear. The fear of losing money or missing out on a big opportunity can paralyze us, leading to rash decisions or complete inaction. But here's the good news: systematic trading can help us easily navigate these fear-filled moments. You see, systematic trading [...]
Systematic Advantage #42: Easily apply various position size methods to fit the personality of any trader One of the coolest things about systematic trading is the flexibility it offers when it comes to position sizing. Whether you're a risk-taker or a cautious investor, there's a position sizing method that fits your personality and trading style. [...]
Systematic Advantage #41: System evaluation is often a true reality check to traders. When it comes to trading, systematic evaluation can be a real game-changer. It is a reality check that keeps your trading strategies grounded and effective. Here's the deal: when you're knee-deep in trading, it's easy to get swept up in the moment, [...]
Systematic Advantage #40: Trading systems make building and testing portfolios easy Systematic trading offers a significant advantage in simplifying the process of building and testing investment portfolios. With such a system, you can choose from various assets, set your specific strategy, and establish your parameters. Once set up, the system operates like a tireless financial [...]
Systematic Advantage #39: Programming a system can be an eye-opening experience when you discover all the assumptions you were making in your trading process. The process of programming a systematic trading system can be an eye-opening experience. It requires you to go through and translate the assumptions you were making about the markets into concrete [...]
Systematic Advantage #38: Systems can't be bullied into a position Unlike discretionary traders, who may be influenced by external pressures, fear, greed, or personal biases, a systematic trading system strictly follows pre-defined rules and algorithms. It does not deviate from its set parameters under any circumstances, making it resistant to 'bullying' into taking a trading [...]
Systematic Advantage #37: Make Evaluation of Performance Easy to Determine if the System Fits Your Trading Personality A unique advantage of systematic trading is its ability to make it easy for traders to evaluate a system's performance. This is essential, as a trader's personality often dictates their risk tolerance, trading style, time commitment, and preferred [...]
Systematic Advantage #36: No Human Emotion, the Downfall of Most Traders One of the most significant advantages of systematic trading is its ability to eliminate the influence of human emotions, often considered the Achilles' heel of most traders. The emotional rollercoaster of fear and greed can lead traders to make impulsive decisions, deviate from their [...]
Systematic Advantage #35: Makes it Easy to Stress Test Variable Settings Using Walk-Forward Optimization Systematic trading allows for robust analysis of variable settings through a method known as Walk-Forward Optimization (WFO). This technique is an essential tool for stress-testing trading systems, as it enables traders to assess how their system would perform under different market [...]
Systematic Advantage #34: Systems Cannot Be Deceived A major benefit of systematic trading lies in its deception immunity. Unlike human traders, whose cognitive biases or misleading indicators can easily sway, systematic trading systems are insulated from such deceptions. This is thanks to their strict adherence to an empirically-verified set of rules and algorithms, ensuring that [...]
