Trading Books: Systematic Trading by Robert Carver

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Introduction to Systematic Trading: A Unique New Method For Designing Trading And Investing Systems

Systematic Trading: A Unique New Method For Designing Trading And Investing Systems is an essential read for traders who aspire to move beyond intuition and develop a rigorous, rules-based approach to the markets. Published in 2015 by Harriman House, this book distills the complex world of systematic trading into practical strategies that can be applied by both novice and experienced traders. Robert Carver, the author, brings a wealth of experience from his years at one of the most prestigious hedge funds, providing readers with insights that are both profound and actionable.

This book is particularly valuable for traders who have struggled with consistency and are looking to refine their trading methodologies. It’s a must-read for anyone serious about achieving long-term success in the stock market through disciplined, systematic strategies.

Systematic trading a unique new method for designing trading and investing systems by robert carver

Robert Carver Background

Robert Carver is a former investment professional who has spent years at some of the world’s leading hedge funds, including AHL, a subsidiary of Man Group. His experience spans the full spectrum of trading, from quantitative analysis to risk management. Carver’s deep understanding of markets and his systematic approach to trading have made him a respected figure in the trading community. His ability to break down complex concepts into understandable strategies is what sets him apart, making Systematic Trading a valuable resource for traders at any level.

Summary of Systematic Trading: A Unique New Method For Designing Trading And Investing Systems

The book is structured to guide the reader through the following key topics:

  • Introduction to Systematic Trading: Understanding the basics of systematic trading and how it differs from discretionary trading.
  • Designing Trading Systems: Detailed steps on how to create a robust trading system that aligns with the trader’s goals and risk tolerance.
  • Risk Management: Essential techniques for managing risk effectively within a trading system.
  • Backtesting and Validation: How to properly backtest trading systems to ensure they are viable in real-world conditions.
  • Implementation: Practical advice on how to implement and monitor trading systems in live markets.

Key Concepts and Strategies

One of the most critical concepts in Carver’s book is the importance of having a robust trading system that minimizes the role of emotions and discretion. Carver emphasizes the need for a systematic approach that is repeatable and based on historical data, which helps traders avoid the pitfalls of emotional decision-making.

Another key strategy discussed is the use of multiple trading systems across different asset classes to diversify risk. Carver provides a clear methodology for creating and testing these systems, ensuring that they can perform consistently across various market conditions. He also delves into the nuances of position sizing, explaining how it can be optimized to maximize returns while controlling for risk.

Practical Applications

Carver’s book is not just theoretical—it is filled with practical advice that traders can apply immediately. For instance, he explains how to use backtesting software to validate trading systems, ensuring they are not overfitted to historical data. Additionally, Carver discusses the importance of setting realistic performance expectations and offers guidance on how to adjust trading systems as market conditions change.

One of the most valuable sections of the book is Carver’s discussion on position sizing. He provides specific methods for calculating the optimal position size for each trade, which is crucial for managing risk and avoiding significant drawdowns.

Powerful Trading Quotes from Systematic Trading: A Unique New Method For Designing Trading And Investing Systems

  • “The best traders are neither the most intelligent nor the most talented, but the most disciplined.”
  • “A systematic approach to trading removes the emotional highs and lows, replacing them with consistent, repeatable actions.”
  • “Diversification is not just about holding different assets; it’s about having different strategies that work under different market conditions.”

Personal Insights from Robert Carver

Throughout the book, Carver shares personal anecdotes from his time at hedge funds, which provide a deeper understanding of his approach to trading. These stories help to humanize the often impersonal world of systematic trading, offering readers a glimpse into the challenges and triumphs Carver has faced in his career. These insights not only make the material more relatable but also serve as motivational examples of how discipline and a systematic approach can lead to success in trading.

Conclusion

Systematic Trading: A Unique New Method For Designing Trading And Investing Systems by Robert Carver is a comprehensive guide for traders who are serious about taking a disciplined, systematic approach to the markets. The book’s combination of theoretical knowledge, practical advice, and personal anecdotes makes it a valuable resource for traders at all levels. Whether you are a beginner looking to build a solid foundation or an experienced trader seeking to refine your strategies, this book provides the tools and insights needed to succeed.

This book is best suited for intermediate to advanced traders who are ready to embrace systematic trading. For those who are analytical and value a structured approach to trading, Carver’s insights will be particularly impactful.

For those looking to expand their understanding of trading and improve their strategies, this book is a must-read. Buy it now on Amazon.

Other Great Trading Books

There are many great trading books which will help you accelerate your trading career. The following are books that we have reviewed and consider valuable additions to any systematic trader’s library.

Systematic Trading Books

General Trading Books

Risk Management Trading Books

Technical Analysis Trading Books

Fundamental Investing Trading Books

Psychology Trading Books

Amibroker Trading Books

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Adrian Reid Founder and CEO
Adrian is a full-time private trader based in Australia and also the Founder and Trading Coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable systems trading. Following his successful adoption of systematic trading which generated him hundreds of thousands of dollars a year using just 30 minutes a day to manage his system trading workflow, Adrian made the easy decision to leave his professional work in the corporate world in 2012. Adrian trades long/short across US, Australian and international stock markets and the cryptocurrency markets. His trading systems are now fully automated and have consistently outperformed international share markets with dramatically reduced risk over the past 20+ years. Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.
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