Quantitative trading is an analytical method that uses mathematical methods to analyze market laws and formulate trading strategies. One of the main reasons why many traders lose money is because they simply enter the market with nothing but the desire of wealth and information they got from news, market analysis, comments, or even trading by feelings and hunch. This occurrence will be reduced greatly if they possess a method to make decision scientifically. Before you start your actual trading, quantitative trading can help to establishing a certain degree of verified trading mode after they analyze a vast amount of valuable information they get from macro data, industry information and market data.
When you start to use this quantitative method to do market analyzing and tracking, subjective assumption and market guessing will surely be reduced. Although this cannot ensure that the profit is guaranteed, but this will surely improve your trading level and achieve a higher profit chance and better success rate compared to trading solely based on news and feelings.
This says nothing informative. There is an infinite number of analytical methods using mathematical methods. What are the key component elements of these methods, laws and strategies?
there a lot of algorithm ready in the software system and new one are created as well and they are running backtesting from time to time constantly. they will always pick out the best few algorithm tested and use it in trading. We knows when they are no longer valid as they are constantly tested from time to time.
there are a lot of methods, laws and strategies used in creating the algorithm used for the system and we pick out few of the best results tested to be use to trade.