Quantitative Trading

What is quantitative trading?

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.

So, what is quantitative trading?

1 Like

:+1::joy: lol…

Are you sure you know what quantitative trading is and if so do you use it??

Quantatitive trading usually involves high frequency trading using algorithmic trading.

This kind of trading is usually done by computer geeks at large hedge funds trading large volumes and probably not done by retail traders.

Or are advocating that we all should start using algorithms to trade??

Cheers

Blackduck

Quantitative trading is an analytical method that uses mathematical methods to analyze market laws and formulate trading strategies

Yes i do use it. with the help of computer softwares of course.

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?

I wish you well and good trading. However I would not entertain the idea as I would not trust an auto syatem to take trades for me.

Correct me if I am wrong but as the master of the algorithm you would have to keep rewriting the software to suit market conditions. Correct??

When and how do you know when your algorithm is no longer valid??

Cheers

Blackduck

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.

How much are you selling your ‘magic software system’ for ? :crazy_face: