Systematic Advantage #33: Systems Can Be Easily Evaluated to Reveal Points of Weakness Systematic trading gives traders the distinct advantage of evaluating their strategies systematically. Unlike discretionary trading, which can be affected by personal opinions and emotional decisions, systematic trading relies on clear and quantifiable rules and parameters that make it easy for traders to [...]
Systematic Advantage #32: Allows trader to assess the markets without the burden of emotional baggage One of the significant advantages of systematic trading is that it allows traders to assess the markets without the burden of emotional baggage. Emotions can be a trader's worst enemy, often leading to impulsive decisions that deviate from a well-thought-out [...]
Systematic Advantage #31: Systems can easily apply the Risk-to-Ruin formula to determine appropriate capital investment levels Systematic trading strategies offer many advantages, including easily applying the Risk-to-Ruin formula to determine appropriate capital investment levels. This formula provides a mathematical approach to risk management, enabling traders to understand how much they can affordably risk before reaching [...]
Systematic Advantage #30: Makes it easy to calculate Maximum Favorable Excursion to know when to add to trending positions In trading, Maximum Favorable Excursion (MFE) is an essential tool that allows traders to measure their potential profit from a trade at any point after it was opened. This metric helps gauge the efficiency of a [...]
Systematic Advantage #29: Systems react to price, not a social media post In today's digital age, social media has become influential in various sectors, including the financial markets. However, while human traders may be swayed by rumors, speculations, or trending topics on social media platforms, systematic trading systems are immune to such influences. They operate [...]
Systematic Advantage #28: Allows you to test your trading plan before trading begins. One of the most significant benefits of systematic trading is its capacity for rigorous backtesting and simulation. Before a single actual trade is made, a systematic trading approach allows you to thoroughly test your trading plan against historical data and hypothetical scenarios. This [...]
Systematic Advantage #27: Systsm can hedge themselves without feeling conflicted. In the trading world, hedging is a crucial strategy to manage and limit potential losses. However, manual hedging often leads to conflicting emotions due to its risky nature. Systematic trading eliminates this issue by separating emotional decisions from the process of placing trades. This is [...]
Systematic Advantage #26: Any trading idea can be programmed … it just takes time, skill & money One of the most beneficial aspects of systematic trading is its versatility and adaptability. Whether a new or complex trading idea is presented, it can be coded into an algorithm with time, skill, and resources. This offers a [...]
Five Compelling Reasons to Adopt Automated Trading Systems Staying ahead of the game in trading requires strategic decision-making, swift action, and effective risk management. Automated trading systems (ATS) offer a compelling solution for traders seeking a more efficient and stress-free approach. By harnessing the power of technology and algorithms, ATS can revolutionize your trading experience, [...]
Systematic Advantage #25: Allows traders to follow their trading plan One of the most important benefits of systematic trading is that it allows traders to follow their trading plans without deviation. A well-designed plan outlines a trader's goals, risk tolerance, and individual strategies for entering and exiting trades. However, adhering to such a plan can [...]
