Difference
between Automated quantitative trading and traditional trading method
Quantitative tradings
In order to determine the best investment portfolio, we try to reach the qulified returns and profit by mathematical statistics, quantitative tradings. We build the model to capital the price of stocks, commodities, indexes, foreign exchange and other financial products as investment targets, using statistics, optimization and other mathematical methods to convert them into profits.
Current Market
According to the latest research report, almost all of the top five hedge funds in the world are gradually replacing traditional investment with quantitative trading. According to the data of Morningstar, an international fund rating agency, the assets under management of global quantitative trading have reached 3 trillion US dollars.
Automated Quantitative Method | Traditional Trading Method | |
|---|---|---|
Risk control | Maximize returns and minimizing risks | Can not fully consider the risks |
Investment target | Investment in decentralized stocks | Investment in a small number of stocks |
Investment terms | The investment tends to be short to medium term | Investment in favor of long-term |
Source of information | Massive data and multi-level aspects of factors | Market fundamentals and macroeconomic |
Investment style | Quantitative analysis of investment | Qualitative analysis of investment |
Analysis Method | On the basis of mathematical model | Based on the human experience and judgement |
Quantitative method advantages
1
The quantitative method in advantage in financial mathematics of a huge amount of historical data analysis, in order to catch the price difference between different investment products, find the most appropriate buying and selling points and optimize the best investment strategy.
2
The automated trading monitors the changes in the global securities market 24 hours a day and can seize investment opportunities in time.
3
Regardless of whether the price of securities rises or falls, quantitative method can control the trading node and make profits.
4
Through the long-term data collection and analysis, the mathematical model s constantly optimized to realize the continuous optimization and upgrading of trading strategies.