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Trading rulings

Is quant trading halal?

Answered by the ShariaQuant team

The method is not the problem. A model that decides when to buy and sell is a tool, and a tool takes the ruling of the trades it places, so a quant strategy that buys screened assets on spot with its own money is permissible. Most institutional quant strategies short sell, use leverage or trade futures and options, and those fail for exactly the reasons they would fail if a person pressed the button.

How automated trading is judged

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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