Systematic Trading

Systematic trading is a trading strategy based on predefined rules, algorithms, or quantitative models that make trading decisions without the influence of human emotions or discretion. These strategies rely on data analysis and statistical methods to identify trading opportunities and execute trades automatically. Systematic trading is common in algorithmic trading and quantitative hedge funds, where trades are executed at high frequency and in large volumes.

Example

A systematic trading strategy might be programmed to buy stocks when their relative strength index (RSI) drops below a certain threshold, with trades executed automatically based on these predefined criteria.