STA Blog

Broad Scope Beyond Algorithmic Trading

While algorithmic trading is a focus of the course, particularly in the final lectures (e.g., Jeff Boccaccio’s lectures on fully automated systems), our course emphasises a much broader perspective on trading systems. It embraces a hybrid approach that combines discretionary and systematic elements, which offers several advantages:

• The Kaufman Approach: Instead of relying on brute force parameter testing to find hidden patterns, our course starts with time-tested trading ideas and builds systems around them. This methodology ensures robustness and avoids overfitting.
• Degrees of Automation: From fully automated strategies to discretionary systems (e.g. Stephen Hoad’s lecture on building a discretionary system), the course caters to varying levels of automation, allowing participants to choose what suits their style and objectives.

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Highlighting Proven Strategies

Our course integrates technical analysis and explores its efficacy in identifying trading concepts with a proven track record. Key strategies discussed include:

• Trend Following: A strategy backed by decades of hedge fund and institutional investment, showing enduring profitability across timeframes.
• Reversion to the Mean: Techniques for timing trades that capitalise on temporary price divergences from established norms.
• Indicators with a Track Record: Moving averages, range breakouts, and others that have consistently shown value in trading.
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Emphasis on “Trading with a System”

Unlike the narrower focus implied by the term “systematic trading,” our course broadens the perspective:

• System Design Philosophy: Participants learn to build systems around established trading concepts, testing rules individually for reliability.
• Discretionary and Systematic Integration: The course emphasises the flexibility to integrate discretionary judgment with systematic rules, a valuable distinction for many traders.
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Adaptability to Different Timeframes

The discussion on timeframes is a crucial differentiator:

• Short-Term Intraday Trading: Acknowledging the significant role of algorithms in identifying fleeting intraday patterns, the course offers insights into these advanced techniques for those interested.
• Broader Timeframes: For those focusing on longer horizons, the course provides practical insights into strategies that go beyond short-term patterns, emphasising the variety of profitable trading approaches available.
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Algorithmic Trading as Part of the Whole

While algorithmic trading is an essential subset of trading styles, our course does an excellent job of contextualising it within the larger trading ecosystem. This holistic approach offers a well-rounded perspective, ensuring participants are equipped to explore diverse opportunities beyond purely algorithmic strategies.
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Conclusion

Our course underscores a unique philosophy and content. By emphasising the breadth of strategies, the adaptability to various trading styles, and the robust system-building approach, our course distinguishes itself as a practical and insightful resource for traders looking to develop a deeper and more nuanced understanding of the trading world.

To learn about our new Technicals to Trading Systems Course, starting April 2025, click here.