Quantitative investment strategyWhat exactly is quantitative investment?

Quantitative investment strategy is a general term for strategies and algorithms that use quantitative methods to analyze, judge and trade in the financial market.

Types of quantitative investment strategies include:

1) Trend judgment quantitative investment strategy, judgment trend type is a high-risk investment method, through the judgment of the trend of ** or **, the corresponding investment operation. If the trend is judged to be upward, go long, if the trend is judged to be downward, then short, and if the trend is consolidated, then sell high and buy low. The advantage of this method is that the yield is high, and the disadvantage is that it is risky.

If you make a mistake, you may suffer significant losses. Therefore, the trend investment method is suitable for investors with a relatively high risk tolerance, and will also have the opportunity to obtain high returns when taking large risks.

2) Volatility judgment quantitative investment strategy, judgment volatility investment method, essentially trying to eliminate systemic risk and earn stable returns. The main investment method of this method is arbitrage, that is, the operation of selling another or n varieties at the same time and selling another or n varieties, which is also called hedging trading. No matter which direction this method fluctuates in, whether it is up or down, you can get a relatively stable income.

In a bull market, this method does not exceed the benchmark in terms of returns, but in a bear market, it can avoid large losses and still have some good gains.

Many people do not understand quantitative investment, and Micro Network pointed out that in fact, just like the difference between traditional Chinese medicine and Western medicine, traditional Chinese medicine relies on experience, paying attention to "looking, smelling, asking, cutting, and listening", and Western medicine relies on indicators to comprehensively judge the condition through a series of examination data. Quantitative investing is nothing more than using indicators and formulas.

Drive investment and trading. Or take ** as an example, sellers need to consider arranging customer service equipment and commodity logistics arrangements for this year's Double 11, if sellers judge according to last year's experience, "there are more buyers at noon" so that they are in.

Double the customer service at noon and make an appointment for logistics, which is qualitative investment. If the seller uses cloud computing to model and analyze the sales big data of last year's Double 11, it is found that "11:25 to.

12:15, 12:45-13:30" period is the most active trading, and therefore multiplies customer service and appointment logistics, which is the quantitative investment of micronetwork.

Quantification can be understood as big data

Learn about quantitative investing in one minute.

Quantitative investment is a trading that uses quantitative software tools to write trading ideas into trading strategies. You can refer to the article: Quantitative Investment Trading Strategies. Exploitation.

The details are as follows:1Alpha Hedging (**+**), Call Auction Stock Selection (**), Multi-factor Stock Selection (**), Grid Trading (**), Index Enhancement (**), Cross-Variety Arbitrage (**), Intertemporal Arbitrage (**), Intraday Rotation Trading (**), Market Maker Trading (**), Turtle Trading (**), Industry Rotation (**), Machine Learning (**).

Extended Information:1It is easier to achieve quantitative pattern breakthroughs, including fractals, narrow sideways breakouts, various ** combinations, double bottoms and double tops, and entanglement three buys and three sells; It is difficult to achieve quantitative patterns with good breakouts, there are trend lines, arc tops and bottoms, flags, diamonds, triangles and other classic technical analysis patterns, the trend is followed by consolidation, and the consolidation is followed by the trend.

The trading strategy of sideways breakout fully embodies the law of volatility in the volatility cycle. What we need to do is to reasonably quantify the definition of the consolidation of the divination family, such as the period span and the amplitude of fluctuations.

2.Yesterday's high, yesterday's low, yesterday's ** price, and today's opening price can be called the four prices of Fiali. It is the main breakout trading reference system adopted by the Japanese ** champion Fiali real market.

In addition, the mode of subjective mind trading of Infiali determines that it also combines and uses a large number of "resistance and overflow lines" in actual trading, that is, resistance lines and support lines.

3.As a popular breakout trading strategy in the foreign exchange market, hans123 breaks through the highs and lows of N-root** after its concise opening as a criterion for trading signal triggering. This is also a trading mode that enters the market earlier, and with filtering technologies such as envelope, time confirmation, and volatility, it may improve its chances of winning.

4.The ORB breakout trade was first proposed in 1988 by Toby, a manager in the United States. He measures the smaller of the distance between the opening price and the most ** and the lowest price, and the breakthrough range is the failure, and once the market exceeds this range, it is considered to be a real breakthrough.

In practical applications, the breakthrough in the morning and the breakthrough after the narrow range can be used as an effective filtering condition.

Quantitative investment refers to the trading method of issuing trading orders through quantitative methods and computer programming for the purpose of obtaining stable returns.

With a history of more than 30 years in overseas development, its investment performance has been stable, and its market size and share have been expanding, and it has been recognized by more and more investors.

From the perspective of participants in the global market, according to the scale of assets under management, five of the top four and top six asset management institutions in the world rely on computer technology to carry out investment decisions, and the scale of funds managed by quantitative and procedural exchanges is constantly expanding.

In fact, the development of the Internet has made the spread of new concepts around the world very fast, as a concept, quantitative investment is not new, and domestic investors have heard of it early.

Features: In fact, quantitative investment and traditional qualitative investment are essentially the same, both are based on the theoretical basis of market ineffectiveness or weak effectiveness, and investment managers can establish a portfolio that beats the market and generates excess returns through the analysis and research of fundamentals such as valuation and growth.

The difference is that qualitative investment management relies more on the research of listed companies, as well as the personal experience and subjective judgment of managers, while quantitative investment management is "the quantitative application of qualitative ideas", with more emphasis on data.

<> "Quantitative Investment. It refers to a transaction that issues trading orders through quantitative methods and computer programming for the purpose of obtaining stable income. Quantitative investment, fundamental analysis, and technical analysis are known as the three mainstream methods.

Unlike traditional investment methods, there are two main types of investment methods: fundamental analysis and technical analysis, but quantitative investment mainly relies on data and models to find investment targets and investment strategies.

Advantages of Quantitative Investing:

1. It is based on mathematical statistics, which is closer to a science, making the future easy to perceive.

2. It can monitor and trade all markets in real time all year round, but humans cannot.

3. It avoids human emotion and is completely automated by the machine.

4. Strictly enforce discipline. The process and risk are more controllable.

What exactly is quantification?

To use a popular analogy: ordinary people**or** is like seeing a doctor in traditional Chinese medicine, through looking, smelling, asking, cutting, and finally judging the results, to a large extent, based on the experience of traditional Chinese medicine, the qualitative degree is larger, and it is largely operated by relying on experience and feeling judgment; Quantitative trading is like Western medicine, first ask the patient to shoot, test, etc., these must rely on medical instruments, and finally draw conclusions, prescribe the right medicine, quantitative like relying on model judgment, the role of the model in quantitative investment is like the role of CT machine for the big doctor.

The model checks and scans the entire market, and if it meets the program model you have written, it will deal with the pirate (placing orders and the like, you can set your own touch and hold vertically, depending on how your model is written). When "quantification" meets "program" to understand "quantization", programmatic trading is easy to understand, that is, quantitative trading strategies are executed through computer programming to carry out automatic or semi-automatic order trading.

To put it simply, quantitative investment is an investment method with data model as the core, programmatic trading as the means, and the pursuit of absolute return as the goal. Its essence is to realize the trading idea through programmatic trading.

The strength of quantitative investing lies in its discipline, systematization, timeliness, accuracy, and decentralization.

1.Discipline: Strictly implement strategic thinking, overcome the weaknesses of human nature: greed, fear, etc., and overcome the consequences of always feeling good about yourself: chasing up and down.

3.Timeliness: Fast-track market changes, comprehensively scan market information, and constantly discover new statistical models that can provide excess returns, and look for new trading opportunities.

4.Accuracy: Accurately and objectively evaluate trading opportunities, overcome subjective sentiment biases, and capture opportunities brought about by mispricing and misvaluation through comprehensive and systematic scanning.

5.Decentralization: Winning by probability.

There are two main aspects, one is that quantitative investment constantly excavates historical laws from history that are expected to be repeated in the future and makes use of them, and these historical laws are strategies with a high probability of winning. The second is to rely on screening out the best combination to win, rather than one or a few ** votes to win, from the perspective of the portfolio concept is also to capture the high probability of winning, rather than betting on a single ** ticket.