The concept of quantitative trading, what is quantitative trading of stocks?

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Have you come across a term called quantitative stock trading when you are doing stocks? So do you know what quantitative stock trading means? Below I will take you to learn the relevant knowledge and concepts of quantitative stock trading. After the study, everyone will have a clear feeling.

Quantitative stock trading refers to replacing subjective judgments with advanced mathematical models, and using computer technology to select various "high probability" events that may bring excess returns from a large amount of historical data to formulate strategies, thereby greatly reducing investor sentiment fluctuations and avoiding market volatility. Make irrational investment decisions when you are extremely zealous or pessimistic.

In recent years, quantitative trading has also become a hot topic in the Chinese investment community. In fact, quantitative trading is not as mysterious as people think. In actual use, "quantitative trading" has two meanings:

1. In a narrow sense, it is a specified amount of transaction content, that is, the transaction conditions are automatically converted into programs and instructions;

Second, in a broad sense, it refers to a systematic trading method, that is, a comprehensive trading system. That is to say, the intelligent decision-making system will manage the risk control in the trading process according to a series of trading conditions, combining rich experience with trading conditions.

I believe that through the above explanation, we can have a clear understanding of what quantitative trading is. The main feature of quantitative trading is that the buying and selling of stocks is no longer determined by subjective judgments, but by quantitative models.

Quantitative stock trading is a scientific method that is rigorously analyzed and calculated, and decisions are made by data and models. Even a simple low price-to-earnings ratio investing method can make huge profits, as long as it is strictly followed. Quantitative Trading Quantitative investing is essentially the same as traditional qualitative investing. The difference between the two is that quantitative investment management is a "quantitative application of qualitative thinking", with more emphasis on data.

Quantitative trading has the following characteristics:

1. Discipline. Decisions are made based on the results of running the model, not by feeling. Discipline not only controls human weaknesses such as greed, fear and luck, but also overcomes cognitive biases and being stalked.

2. Systematize. The specific performance is "three more". One is multi-level, including a three-level model: main asset type allocation, industry selection and asset-specific selection. Second, from multiple perspectives, the core concepts of quantitative investing include macro cycles, market structure, valuation, growth, earnings quality, analyst earnings forecasts, and market sentiment. The third is multi-data, that is, the processing of massive data

3. Arbitrage ideas. Quantitative investing captures mispricing opportunities through a comprehensive and systematic scan to spot valuation dips and purchases of undervalued assets.

Profits from property and sale of overvalued assets.

4. Probability of winning. First, quantitative investing continually mines historical data, looking for patterns that are expected to repeat and exploiting them.

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