What is Systematic Trading?
While a discretionary trader looks at market prices, news and charts to come up with a subjective trading decision, a systematic trader will follow his trading rules which consists of clear, 100% objective rules as to when exactly enter and exit a market.
These trading rules could for example be based on statistical observations or specific price patterns that have been validated before.
Here's an example of what a monthly trading pattern system for the S&P 500 could look like:
Such rules are unambiguous and leave no room for interpretation. As such they can be validated based on historical data to see if they are likely to provide a statistical significant edge in the markets or not.
Why Systematic Trading?
Marco is a full time systematic trader and the head behind AlgoStrats.
Having extensive experience as both a Trader and a Quant is a rare set of skills and a big advantage in today's markets. Thanks to this unique skill set, Marco has full control over all parts of his Systematic Trading and each of the AlgoStrats products and services. This way there is literally no friction between the different parts of trading systems research and development and the actual trading in the markets.
Want to know more about Marco? Check out his Bio.