Systematic Advantage #6 Allows trader to focus on the portfolio and not tic-by-tic price moves
Systematic trading allows traders to shift their attention toward the overall performance of their portfolio. Instead of getting fixated on the ups and downs of individual futures prices, traders can step back and evaluate their overall investment strategy. This approach allows for a more strategic and comprehensive view of one’s portfolio, leading to better decision-making and improved portfolio performance.
In addition, automated trades based on predefined rules make systematic trading more efficient and less prone to costly mistakes resulting from emotions or bias. Traders can use this additional time to analyze the markets, conduct research and gain a deeper understanding of their strategies.
Overall, systematic trading helps traders take a more disciplined and methodical approach, removing distractions and emotions. As a result, systematic trading provides a strong foundation for profitable trades and long-term portfolio growth.