Portfolio Management – L1

If I have to think of a rationale.

The key distinction is tha

If I have to think of a rationale.

The key distinction is that algorithmic trading and machine learning are not the same thing.

Algorithmic trading simply means using predefined rules to execute trades automatically. Those rules may be very simple (e.g., “buy when the 50-day moving average crosses above the 200-day moving average”) and do not require machine learning at all.

Machine learning, on the other hand, involves algorithms learning patterns from data and improving predictions without being explicitly programmed with fixed rules.

Therefore, while many modern algorithmic trading strategies use machine learning, algorithmic trading as a concept does not necessarily rely on machine learning. That is why it can be considered the option least likely to be based on machine learning relative to applications that inherently depend on data-driven pattern recognition.

In short:

• Algorithmic Trading ≠ necessarily Machine Learning
• Machine Learning can be used within Algorithmic Trading
• The curriculum treats algorithmic trading as the broader category, so it may exist with or without ML.