The Gist Talk

Systematic Trading: Part 4 - Developing a Systematic Trading Strategy


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This episode offers a comprehensive guide to systematic trading frameworks, primarily focusing on three distinct investor profiles: the semi-automatic trader, the asset allocating investor, and the staunch systems trader. Each section outlines how a specific type of trader can implement a systematic approach, detailing aspects such as capital managementposition sizingrisk control, and the application of various trading rules. The document provides practical examples and diary entries to illustrate the methodologies, encompassing discussions on volatility targetingportfolio diversification, and the crucial consideration of trading costs. It concludes with a summary of qualities essential for a successful systematic trader and a glossary of key terms, along with resources for further reading and data sources

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The Gist TalkBy kw