Brown Monkey Holding Black Metal Bar

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.

 

 

Similar Posts