Systematic Trading and Active Risk Management

Turn market ideas into rules that can be tested

This course develops a professional decision process for active trading. Students learn to distinguish trend-following and mean-reversion environments, define entries and exits, size positions, manage risk, test signals and review performance without relying on hope, fear or guaranteed predictions.

Students will learn to:

Identify trending, ranging and changing market regimes.
Build rules for mean-reversion and trend-following setups.
Use DMI, ADX, moving averages and momentum as evidence rather than certainty.
Define entry, invalidation, target, position size and maximum loss before trading.
Understand stop-loss slippage, liquidity and execution risk.
Measure expectancy, win rate, average gain/loss and drawdown.
Use chart replay, journaling and out-of-sample testing to evaluate a system.
Control anchoring, confirmation bias, herding and the sunk-cost fallacy.

Educational notice: Every strategy has losing periods. Leverage can magnify losses rapidly, and no indicator or backtest guarantees future results.