What does quantitative trading mean?

Quantitative trading refers to the way of securities investment with the help of modern statistics, mathematics and computer technology, which greatly reduces the influence of investors' emotional fluctuations and avoids making irrational investment decisions in the case of extreme fanaticism or pessimism in the market.

Quantitative trading refers to the use of advanced mathematical models instead of artificial subjective judgments, and the use of computer technology to select a variety of "high probability" events that can bring excess returns to formulate strategies, which greatly reduces the impact of investors' emotional fluctuations and avoids making irrational investment decisions under extremely enthusiastic or pessimistic market conditions.

Foreign markets:

First of all, from the perspective of participants in the global market, according to the scale of assets under management, five of the top six asset management institutions in the world in 20 18 relied on computer technology to make investment decisions, and the scale of funds managed by quantitative and programmatic exchanges was further expanded in 20 19.

Secondly, more than 70% of global capital transactions are conducted by computers or programs, and half of them are managed by quantitative or programmed managers. There will be more than 330,000 related positions when recruiting financial engineers (including keywords such as quantification and data science) on websites abroad.

Third, from the perspective of the training direction of colleges and universities, more than 450 American universities have set up financial engineering majors, and the number of graduates of related majors reaches 6.5438+0.5 million each year. There is a significant gap between the market demand and the number of graduates, so students of data science, computer science, accounting and related STEM (basic science) enter the financial industry to engage in quantitative analysis and application development after graduation.

Quantitative trading has the following characteristics:

discipline

Make decisions according to the running results of the model, not by feeling. Discipline can not only restrain human weaknesses such as greed, fear and luck, but also overcome cognitive bias and can be tracked.

2. Systematic

The specific performance is "three more". First, a multi-level model, including asset allocation, industry selection and specific asset selection; Second, from multiple perspectives, the core idea of quantitative investment includes macro-cycle, market structure, valuation, growth, profit quality, analyst's profit forecast, market sentiment and so on; The third is multi-data, that is, the processing of massive data.

3. Arbitrage thought

Quantitative investment captures the opportunities brought by mispricing and mispricing through comprehensive and systematic scanning, so as to find out the valuation depression and make profits by buying undervalued assets and selling overvalued assets.

4. Probability wins

First, quantitative investment constantly digs out the expected repetitive laws from historical data and uses them; The second is to win by combining assets, not by a single asset.