Systematic Advantage #4 Allows for robustness testing Robustness testing is a crucial step in evaluating the effectiveness of a trading system. It involves testing the system's performance under various market conditions and scenarios to ensure it's not over-optimized or reliant on specific conditions. Systematic trading simplifies the process of conducting robustness testing by providing a [...]
Systematic Advantage #3 makes it easy to test and apply position-sizing adjustments. Position-sizing is an essential part of any trading strategy, as it allows traders to manage their risk by controlling how much money they put into a particular position. Systematic trading makes testing and applying different position-sizing adjustments easy, allowing traders to optimize their [...]
Systematic Advantage #2 Allows traders to trade more markets actively Systematic trading allows traders to actively participate in more markets than they would be able to if they relied on manual strategies. This is because systematic strategies allow traders to quickly analyze and act on market data, allowing them to take advantage of new opportunities [...]
Systematic Advantage #1: Reduces, if not eliminates, trading emotion Systematic trading seeks to reduce or even eliminate trading emotion. It relies on pre-defined rules and strictly enforced algorithms to buy, sell and manage positions without the bias of a human trader's emotions. Utilizing this methodology allows traders to take advantage of market movements more consistently, [...]
