Is Quantitative Trading Reliable for Individual Traders?

At the end of 2021,Quantitative fundsThe news of the 50 million year-end bonus caused an uproar in the quantitative industry. Xiaobai felt that,Quantitative tradingIt's like a mysterious knowledge. As long as you learn quantitative trading, you will have your own wealth. If you have your own account, you will have your own wealth. But just a few days later, there was an apology about "Magic Square"'s hundreds of billions of assets, as well as accusations from investors, telling them not to act rashly. Because of the hype of some financial videos and public accounts, quantitative trading is hidden in the DNA of this video. Because other trading methods do not require explanation, when you stand at the front, you will comment on all transactions, and quantitative trading, like God, makes novices full of longing for other transactions. With fantasy, you will stay away from real quantitative trading.

Quantitative Trading Subjective Trading You must understand that quantitative trading, like other investment methods, such as value investing, technical analysis, and financial analysis, is a way to analyze the stock market.

When sales indicators and financial indicators are consistent with regulations, buy or sell. Here, the first mistake of a novice is to mistakenly believe that trading can defeat subjective trading. Quantitative trading can be written into trading rules, allowing machines to understand a linear way of thinking, while subjective trading is a kind of related thinking. It can understand national policies, the direction of the market, and the competitiveness of the market, but in terms of methodology and data, it cannot prove who is better. Since quantitative and subjective comparisons cannot be verified, why bother studying quantitative ones? The reason why I learned quantification is very simple, that is, my subjective trading relies on luck, and my ability relies on my own ability to make money. The most troublesome thing is that no matter what I do, I will not bring any experience to myself. Even if I have ten years of stock experience, I will not change my selling principles because of my own selling. If I have a floating loss of ten points, sell or hold on, run when it rises, or sell, or I have enough experience.

It can help you accumulate selling rules. Several technical indicators are added to the original selling rules, such as: take-profit strategy, stop-loss strategy, bottom-buying strategy, etc. Quantitative trading is just a tool to help you quickly accumulate and discover trading patterns. If you are using market reading software, you can implement your stock investment strategy through Excel, so you don't have to bother studying quantification. If you think that the existing stock investment strategies cannot meet your investment strategy, or you cannot find a suitable stock investment strategy, you can use codes to implement your quantitative investment strategy.

Even if you learn quantitative trading skills, you can test them yourself. Historical data backtesting, quantitative trading can be written into code, so the biggest advantage of quantitative trading is that it can be backtested, which includes buying and selling, buying and selling, and profit and loss in the past period, to test your trading strategy. However, I also want to remind you that this is also a trap. If there is a chance, I will tell you what problems may arise in quantitative trading.

Compared with the previous trading framework, the most comprehensive quantitative trading framework on the Internet points out another key issue for beginners entering quantitative trading. Strategy and trading structure are parallel. If you want to mine, you must be fully prepared. Although he does not know how to mine, he can buy a shovel first, and then make a plan to find suitable implementation tools, or learning tools, or learning tools. From beginners to beginners, you will encounter various problems, including system problems, code problems, data problems, and slowness problems. For most novices who have just come into contact with quantitative trading, if they cannot take into account both strategy and framework, they are likely to be bound by the framework, or they may master a framework but be unable to implement it.

Summary: When I first started, quantitative trading was very difficult. Many quantitative trading papers and videos were based on the audience, some were programming, some were quantitative trading, some were called data interfaces, and some were called platforms.

Novices are lost as soon as they get started. It is recommended that newbies choose a strategy and then slowly learn platform selection,Indicator writing, test observation, strategy backtesting, automatic order placementWait.