Is it Better to Be a Strategy Trader or a Systems Trader?
The distinction between a strategy trader and a systems trader lies in the scope and specificity of their approaches to trading. A trading strategy is a general set of rules used to make trading decisions, while a trading system is a more specific implementation of a trading strategy, involving pre-defined rules for entry and exit signals, position sizing, risk management, and other aspects of the trading process. A trading system can be automated or manual, and it is designed to remove or reduce the human-emotional impact of the trading decision-making process[4].
In summary, a trading strategy provides a general approach to the markets, while a trading system is a specific implementation of a trading strategy, designed to systematize and automate trading decisions. Both approaches have their merits, and the choice between them depends on the trader’s preferences, risk tolerance, and trading style.
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