Systematic trading

Systematic trading (also known as mechanical trading) is a way of defining trade goals, risk controls and rules that can make investment and trading decisions in a methodical way.

Systematic trading includes both manual trading of systems, and full or partial automation using computers. Although technical systematic systems are more common, there are also systems using fundamental data such as those in equity long:short hedge funds and GTAA funds. Systematic trading includes both high frequency trading (HFT, sometimes called Algorithmic trading) and slower types of investment such as systematic trend following. It also includes passive index tracking.

The opposite of systematic trading is discretionary trading. The disadvantage of discretionary trading is that it may be influenced by emotions, isn't easily back tested, and has less rigorous risk control.

Systematic trading is related to quantitative trading. Quantitative trading includes all trading which use quantitative techniques; most quantitative trading involves using techniques to value market assets like derivatives but the trading decision may be systematic or discretionary.

Systematic

Systematic may mean:

See also

Systematic (band)

Systematic was an American hard rock band from Oakland, California. They were one of the first signings to Metallica drummer Lars Ulrich's record label, The Music Company, via Elektra Records. The band released two studio albums before disbanding in 2004.

History

After signing with The Music Company, Systematic recorded their debut album, Somewhere in Between. Released in late 2001, it reached #143 in Billboard album chart. Systematic toured on Ozzfest the same year. In addition, the band appeared in HBO's live concert program Reverb alongside Papa Roach and Beautiful Creatures.

During the music video shoot for the song "Deep Colors Bleed," drummer Shaun Bannon injured his arm, forcing him to step down from his duties behind the kit. After a few temporary fill-in drummers, former Slayer drummer Paul Bostaph joined Systematic in 2002. The video game "ATV Offroad Fury 2" released on November 9, 2002 featured the band's song "Thick Skin". Somewhere in this time period, Nick St. Denis also left the band due to his desire to play guitar instead of bass. Bassist Johnny Bechtel filled the void, and the group headed to the studio to record their follow-up to Somewhere in Between.