What is the connection and difference between quantitative trading strategy and programmatic trading

Quantitative trading is mostly used in trading, quantification refers to the quantification of data in a certain or touching an industry, in the more institutions of their own quantitative formula to choose, quantitative trading is only a choice, does not involve trading, programmatic trading is also a kind of quantitative trading, but it is more existing data to carry out, such as a variety of indicators, MACD KDJ, etc., can not be like quantitative trading can involve all the data to quantify, programmatic trading is more focused on the automatic conduct of transactions, no intervention, and the model is easy to write, and it can be carried out by individual users!

Quantitative trading strategies include quantitative stock selection and sector selection. However, it may be a manual transaction. In other words, it is necessary to prepare for trading in a quantitative way, and to prepare for trading in quantitative standards, but it is not certain whether it is manual or automatic trading.

Programmatic trading strategies mainly focus on the automation of trading and are prepared for institutions. It doesn't involve stock selection, but rather writing models to make the machine automatically program trading.

What does it mean when compiling my own policies, programs, when I design the use of knowledge about the use of financial engineering, communication speech analysis techniques, and also interspersed with a cross-language programming, I think that even if a hacker hacks my source**, he has no other prior knowledge, I am scared and I don't understand a series of strategies. Foreign policy software is for the same reason, you don't read the material.

Quantitative trading refers to the use of advanced mathematical models to replace human subjective judgments. Quantitative trading vs. programmatic tradingIt is different in nature, characteristics, and development trends.

First, the nature is different

1. Quantitative trading: The use of computer technology from the huge historical data to select a variety of "high probability" events that can bring excess returns to formulate strategies, greatly reducing the impact of investor sentiment fluctuations, to avoid irrational investment decisions in the case of extreme market fanaticism or pessimism.

2. Programmatic trading: The quantifiable analysis method is programmed into a trading strategy by computer for automatic order trading, which is a part of quantitative trading or a further upgrade of some quantitative trading.

Second, the characteristics are different

1. Quantitative trading

1) Discipline. Make decisions based on how the model runs, not on feelings. Discipline can overcome weaknesses such as greed, fear, and luck in human nature, as well as cognitive biases, and can be tracked.

2) Systematic. The specific performance is "three more". Multi-level, including models at three levels: asset allocation, industry selection, and selection of specific assets; From multiple perspectives, the core ideas of quantitative investment include macro cycle, market structure, valuation, growth, earnings quality, analyst earnings**, market sentiment and other perspectives; Multi-data, i.e., the processing of massive amounts of data.

3) Arbitrage thinking. Quantitative investment captures the opportunities brought about by mispricing and misvaluation through comprehensive and systematic scanning, so as to find valuation depressions and profit by undervaluing assets and selling overvalued assets.

4) Probability wins. Quantitative investing is constantly digging for patterns that are expected to be repeated from historical data and exploiting them; Rely on a portfolio of assets to win, not a single asset to win.

2. Programmatic trading: The operation mode of programmatic trading does not seek performance.

1. Do not seek to earn exaggerated profits, but only seek long-term and stable profits, grow in the market and achieve the compound interest effect of wealth accumulation. Over a long period of time, the annual profitability can be maintained above a certain level.

Third, the development trend is different

1. Quantitative trading: The quantitative management scale accounts for 1% 2% in China, less than 1% in public offerings, and about 5% in private placements.

2. Programmatic trading: The T+1 delivery system in the domestic market makes it impossible to implement a large number of intraday trading strategies, let alone high-frequency trading strategies. In addition, the market does not allow short selling, the lack of a market maker system, the simple products available for trading, and the imperfect trading instructions are not conducive to the development of programmatic trading strategies.

The above content reference: Encyclopedia - Quantitative Trading.

The above content reference: Encyclopedia - Programmatic Trading.

Roughly some equivalent products of the molecule, in fact, quantitative trading, that is, to put a very large amount, and then reduce it into a word, so that you can calculate its disadvantages more accurately, in fact, it may not be careful to miscalculate.

Trading Strategies, Quantitative Strategies, Subjective Strategies, Common Strategies.

Trading strategy: A complete trading strategy generally includes the selection of trading targets, the selection of entry and exit timing, and capital management. According to the difference in the degree of participation of human subjective decision and computer algorithm execution in the decision-making of all aspects of the strategy, trading strategies can be divided into subjective strategies and quantitative strategies.

Subjective strategy: Subjective strategy mainly relies on the subjective judgment of investors, and investors in the market make their own judgments through the investigation of the upstream, midstream and downstream of the industry, supply and demand, macroeconomic expectations, etc. Subjective investors in similar markets form trading decisions by in-depth research on all aspects of the industry, investigating listed companies in the industry.

Quantitative trading considerations.

In quantitative trading, trading rules, parameters, and backtesting are calculated based on historical data. We can't tell whether these patterns obtained from historical data will continue to work in future markets, and we can't judge whether the trading models we build will be applied.

Simple quantitative factors and strategies are easier for people to understand and accept, but the simpler the strategy, the easier it is for people to know, and the lower the excess return obtained from quantitative trading.

<>1. Quantitative trading can improve the accuracy and reliability of transactions, because it can better control risks, better control transaction costs, and better control transaction results, thereby improving the accuracy and reliability of transactions.

2. Quantitative trading can improve the efficiency of trading, because it can complete transactions faster, achieve profits faster, and achieve investment goals faster, thereby improving the efficiency of trading.

3. Quantitative trading can improve the controllability of trading, because it can better control the risk of trading, better control the cost of trading, and better control the results of trading, so as to improve the controllability of trading.

Principles of Quantitative Trading:

Quantitative trading is a trading method based on data analysis and algorithms, which enables automated trading by analyzing a large amount of historical data, building models, and using algorithms to ** future market movements. The core idea of quantitative trading is to automate trading by analyzing large amounts of historical data, building models, and using algorithms to determine future market movements. The process of quantitative trading includes data collection, data analysis, model building, algorithmic real-life shooting, transaction execution and other steps.

The advantage of quantitative trading is that it can better control risks, better control transaction costs, and better control transaction results, so as to improve the accuracy and reliability of transactions, improve the efficiency of transactions, and improve the controllability of transactions.

Programmatic trading refers to a process in which the designer systematizes the trading strategy after the logic and parameters of the trading strategy are calculated by a computer program.

In addition to supporting chart-driven programmatic trading, quantitative trading can also be used for basket trading, algorithmic trading, and more complex hedging trading, with a wider range of means and scope.

Recommendation: There are a lot of option settings in the XP dialog, and it's common to select an option and then click the OK button to start executing. This can be simplified with a double-click of the mouse, and double-clicking an option can be both selected and executed.

Personally, I think that quantitative trading emphasizes quantitative trading, and programmatic trading emphasizes automatic trading, and it is difficult to say that there is any big difference between the two.

Programmatic trading is just one type of quantitative trading.

No one is born a trader, let alone a successful trader. Trading strategies and trading ideas are gradually cultivated through actual combat and training. In the book "The Law of Turtle Trading", it is written that traders can be cultivated.

Indeed, those "turtles" have made amazing gains through the trading methods taught by Dennis.

"Turtle" directly got the guidance of the masters, and took a lot of detours. What about us? To be like a rattle how to form their own trading strategies and trading ideas. There is only a lot of practice and nothing else.

Success is simply doing things over and over again. At the beginning, we traded by feeling, buying when we saw that it was going to rise, and going short when we saw that it was going to fall. At that time, our trading strategy was a trend-following trading strategy.

It's just that you don't have a clear standard for this homeopathy. Slowly, you may have formed a simple trading framework, but you are not sure if it will work well.

That's where you need a lot of practice. Use the demo to test your trading strategy. Backtesting with history doesn't work well. In a risk-free environment, regardless of other factors such as mentality, you can verify whether your trading strategy can bring benefits from the trend alone.

If you can, then go to the real market. Only after the tempering of actual combat can you truly realize the extent of your cognition. Trading logic is the core of your trading, and strategy is just a carrier.

For example, if you think that trading with the trend is in line with you, then the trend is the core logic of your trading, and the strategy is how you do it when the trend appears. This strategy can be what**entry, what**exit, or what form is the entry, what form is the exit. It can also be a decrease in inventory entry and an increase in inventory entry.

To be precise, trading ideas, that is, trading logic, are the helmsmen who lead the direction of trading, and the strategy is just a specific operation plan. This process can be fast or slow, depending on the individual's understanding. It also depends on whether the funds can support you to get to this point before it is formed.

Therefore, what trading strategies and trading ideas are an afterthought, provided that you make sure that you still have enough money in your account and don't let your account die.

We must strengthen actual combat exercises, let ourselves master the knowledge of the foundation or the foundation, but also understand the basic strategies, have a certain thinking, and do not be too panicked at any time.

Because we often pay attention to this aspect of the situation, and often make transactions, often consider this aspect, and often think about transactions, so we can only form such thoughts in God.

This is something that needs to be learned and analyzed through one's own exploration and accumulation of experience, so that it can be formed.