Introduction

This book, Systematic Trading: A Unique New Approach to Designing Trading and Investment Systems, written by Robert Carver, aims to provide readers with a complete set of guides to help them develop their own systems to make and execute trading and investment decisions. This book emphasizes the importance of systematic trading to overcome the inherent cognitive biases and emotional influence of humans in financial decision-making.

Carver combines financial theory, his experience in systematic hedge fund strategy management, and in-depth research to explain why systematic trading works and how to do it safely and profitably. Every aspect from creating trading rules to position sizing is explained in detail. The framework presented in this book can be applied to all asset classes, including stocks, bonds, foreign exchange, and commodities.

The main contents include: the theoretical basis of systematic trading and its applicable scenarios; a simple method for designing effective strategies; a complete position management framework that can be adjusted according to needs; how to create or adjust trading rules to predict prices; discretionary trading decisions within a systematic framework; and how traditional long-term investors can use the system to ensure appropriate diversification of investments and avoid unnecessary frequent adjustments to the portfolio. The book also provides practical examples from the UK, US and international markets illustrating the application of the framework. Detailed, comprehensive, and packed with practical advice, this book is essential reading for anyone considering using a system to make investment decisions.

Main features

• Solid theoretical foundation
• Rich practical cases
• Clear operating instructions
• Suitable for practical applications

Suitable for the crowd

• Quantitative Analyst
• Algorithmic Trader
• Financial Engineer
• Data Scientist