What are the characteristics and advantages of CTA strategies?

Private placement network for you to answer:

CTA is invested in futures markets with a very low correlation with the rise and fall, so the trend following strategy can provide the lowest correlation with the best. Low correlation with other strategies.

First, the nature is different

1. CTA strategy: commodity trading consultants make predictions on the trend of investment targets such as commodities, and the positive chain passes derivatives such as options.

In the investment, long, short or long and short two-way investment operations are carried out to obtain investment returns from outside the traditional **, bonds and other asset classes for investors.

2. Quantitative strategy: refers to the complete realization of the entire trading process as a computer program.

From data receiving, processing to transaction execution, it is automatically completed by the computer mumu program.

Second, the characteristics are different

1. CTA strategy: investment can be developed rapidly in foreign countries, which reflects a market force, indicating that there is a huge demand for investment objectively, and the reason for this huge demand is that investment has the characteristics and functions that other investment tools do not have.

2. Quantitative strategy: Quantitative strategy is an intelligent robot that can firmly execute your trading ideas, which will replace you to monitor changes at all times and complete tedious trading actions.

Third, the characteristics of the method are different

1. CTA strategy: Different participants have different role positioning, but it is also possible that the same subject has different functions. The participants not only have clear responsibilities and fulfill their duties, but also cooperate and coordinate with each other.

2. Quantitative strategy: In order to develop such a quantitative strategy, it is necessary to collect a certain amount of data in advance, and on the basis of it, establish a set of number-based processing and decision-making models.

In terms of investment methods, CAT strategies can be divided into subjective hand lifting CTA and quantitative CTA, to put it bluntly, the purpose is the same, but the means are different. CTA arbitrage is an art, and it's not just about testingManagerKeen insight is also one of the important criteria for determining the development of a CTA strategic private equity firm.

CTA is an abbreviation for Commodity Trading Advisor. CTA was originally a purely financial regulatory term that represented an individual or organization that specializes in providing clients with the best trading advice and state affairs. Later, it evolved into a kind of professional manager with the goal of pursuing absolute returns, using the funds entrusted by customers to invest in the market.

options market, and a form of investment advisory fees.

When choosing CTA**, first look at its historical performance and the sustainability of its performance, the longer the time, the higher the return, the better the product. A successful and sustainable CTA must rely on the strength of the team, a good team can make multi-strategy investment, and can achieve better investment returns in various market forms.

Therefore, the professional strength and stability of the team are extremely important.

CTA stands for Commodity Trading Advisors, also known as Management**.

It refers to a form of organization in which a professional fund manager invests in the ** market and the options market with the funds entrusted by the customer, and collects the corresponding management fees.

As a strategic approach to investment, CTA is essentially a collection of rules, which is very regular, and many investment categories are included, which is an important way to achieve diversification in asset allocation, and is gradually becoming one of the basic asset allocations of mature investment institutions.

A CTA strategy is known as a commodity trading advisor strategy, also known as a managed strategy. Commodity trading consultants make predictions on the trend of investment targets such as commodities, and carry out long, short or long-short two-way investment operations in the investment through derivatives such as options, so as to obtain investment returns from outside asset classes such as Chuan Pitan and bonds.

Trend trading is to eliminate market noise through a large number of indicators, set up a trading system, judge the current market trend, and then establish a position, and the critical point of adjusting the position is specified by a specific computer algorithm. The success of CTA strategy trend trading is not only because investors believe that the market is not that efficient, but more importantly, they observe that the market is trending.

The impact of the event will cause the value of the underlying to increase rapidly in the short term, but it will take some time for it to rise, and then it may continue to climb beyond its value. During this period, the trend-following strategy can be profitable.

CTA strategy research object: In a narrow sense, the research object of CTA strategy only includes**, such as domestic stock index**, commodities** and treasury bonds** (interest rate**), these varieties are the main research objects and profits of domestic CTA strategy**;

Broadly speaking, it can be commodities, Treasury bonds (interest rates), foreign exchange (including spots and futures), and even options and any other variety that has a certain historical public volume and price data.

CTA strategy research cycle: Generally speaking, it is mainly based on minutes, Xiao Li and daily data. A small number of CTA strategies will also use tick data, including BidPrice, AskPrice, BidVolume, and AskVolume at Level 2.

CTA strategy research method: analyze the historical volume and price data of a single variety, including the opening price, the highest price, the lowest price, the trading volume, and the open interest, and extract the law with a probability advantage, which is the factor or strategy in the usual sense, and realize this law with **, and assume that this kind of law will still exist in the future. Finally, this kind of law is used to judge the future direction of the variety, and to open, close, increase, reduce and other operations, and make a profit.

Generally speaking, the CTA strategies that have evolved so far are basically all-finger automatic trading, but there are still trading supplemented by manual judgment.