Content source WeChat public account: Ah N quantification

What is quantitative trading

Quantitative trading refers to replacing human subjective judgments with advanced mathematical models, using computer technology to select various "high probability" events that can bring excess returns from huge historical data to formulate strategies, which greatly reduces investor sentiment. The impact of volatility and avoid making irrational investment decisions when the market is extremely manic or pessimistic.

popular explanation

Quantitative trading is the solution that helps traders overcome human weaknesses. Compared with subjective trading, the decision-making of quantitative trading is more systematic, the execution is more accurate, and the influence of subjective emotions is avoided.

for example

Quantitative trading is like a cooking machine. According to the designed recipe, it automatically matches the ingredients, masters the heat, seasoning, etc., and finally produces a delicious dish.

The problem of subjective trading

Unlike quantitative trading, subjective trading is influenced by emotion and also by outside news.

Public offering, private placement, FOF, MOM

Ordinary investors can participate in quantitative transactions through public funds or private funds.

Catch the ride of quantitative trading

As more and more traders transition to quantitative trading, the stock market is undergoing profound changes.

complex quantitative strategies

Quantitative trading can be carried out as long as it is logically self-consistent. This leads to a new problem, which is short-lived due to policy overfitting.

Quantify risk

Whether it is quantitative trading or subjective trading, the existence of risks cannot be ignored.

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