What Is Quantitative Trading?

QuantifytransactionIt uses computer technology to select various high-probability events that may generate huge profits from massive and diverse data, thereby forming a high-tech mathematical model that replaces human subjective judgment, thereby avoiding irrational investment decisions in extreme fanaticism and pessimistic environments, thereby reducing the impact of investors' emotional fluctuations on transactions.Several popular quantitative robots on the market now are all about intelligent configuration, grid trading, intelligent protection, non-tracking and profit-taking, and intelligent delayed payment, but the final results are a bit disappointing.For example, we hope to judge whether the stock we bought today can make money through search, but if we search directly, it is obviously impossible to find the answer. The job of the quantitative system is to tell the trader what he wants to do today. General trading refers to decisions made by traders based on their own experience and preferences. Quantitative trading refers to historical market conditions, fundamental analysis, and news, and then analyzes these data through computers and statistical techniques to derive corresponding trading signals. From the perspective of ordinary people, everyone wants to treat their trading as an investment, and few people will do this kind of thing, even if it is a gamble. But the reality is very cruel. Many people are doing a real gamble. They will do short-term trading in the market and only look at winning or losing. Gambling depends on luck and there is no chance of winning. Speculation, on the other hand, requires skill and experience. Only after weighing the pros and cons can you gain the advantage of opportunities. In quantitative trading, most strategies are based on the summary of historical laws, and on the basis of these laws, possible advantages are discovered. Although the probability advantage in quantitative trading is not absolute, for traditional investment purposes, more accurate prediction results are necessary.

Investment, even in the early stages of investment, requires a lot of time to research and analyze in order to obtain high investment returns. Such investment is the real investment. In any other simple analysis, short-term holdings would be speculative. For a small individual investor, doing a basic analysis is difficult. Many traders mistakenly believe that they have short-term forecasting skills, when in fact they are nothing more than speculators. I think that for most quantitative traders and small and medium-sized fund investors, it is also a good choice to use quantitative trading techniques to obtain trading opportunities, become a successful speculator in the market, and gradually transform into a speculator. The difference between the human brain and a machine is that it can handle subtle things, not the human brain. Quantitative investments are new ones that take advantage of cognitive biases that prevent future worms from being effective.

Profits can be made in the market based on arbitrage opportunities viewed above, the irrationality of market overreactions and the uncertainty of market microstructure. Because quantitative investment often requires a large amount of statistics and artificial intelligence to analyze historical data. However, the generation, induction, and judgment of investment concepts are all based on the human brain, which leads to investment restrictions. Although to a certain extent, quantitative investment still has certain limitations, its development prospects are very broad. Experience in foreign markets tells us that quantitative investment methods can withstand the test of the market, and new markets, new tools, new transactions and new data sources will bring us new quantitative opportunities.

The above point of view is only a reference and does not provide any investment advice. Please pay attention to Liangmi Financial Services.