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Investment Idiocy: Systematic trading stuff

By continuing to use this website, you consent to our use of these cookies. Given the recent turbulence in global capital markets and difficulties in certain hedge fund sectors, it is refreshing to see that trading strategies are enjoying strong performance.

In particular, the systematic trading style ie.

It would seem that now is a suitable time for a closer look at this segment of the hedge fund universe. Systematic traders are, essentially, hedge funds that trade any macroeconomic market FX, commodities, fixed income, equity indices etc through an algorithmic trading programme.

Typically they will use technical signals ie. This excludes other fundamentally-driven quantitative strategies such as statistical arbitrage and global tactical asset allocation GTAA.

Systematic trading - Wikipedia

Most systematic traders will have their trading programme running on all potential securities in their universe, which can lead to a diversified book of positions in hundreds of markets. Traders will often have high notional exposure which arises from their use of futures contracts to take positions.

Systematic trading - Wikipedia

This combined with the highly liquid nature of the assets held results in minimal financing risk relative to other hedge fund strategies. Skip to main content.

Systematic Trading

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