How do individual investors do quantitative trading, and how do retail investors do quantitative tra

There's a famous saying that says, "Time is money." In today's financial market, there are countless ** information constantly changing every second, and quantitative trading is using this change of information to obtain profits.

So, can individuals participate in quantitative trading? This is a long-standing question for many investors. In this article, we'll dive into the issues related to quantitative trading to help readers better understand this approach to investing.

1. What is quantitative trading?

Quantitative trading refers to an investment method that uses computer programs and fast Internet connections to conduct ** trading in a very short period of time. At its core, quantitative trading is about taking advantage of the market's rapidly changing informationto obtain ultra-short-term profits through fast trading operations. The frequency of quantitative trading is usually more than several times per second, which is hundreds of times that of traditional trading.

2. Can an individual do quantitative trading?

For individual investors, participate in quantitative tradingThere are certain thresholds and risks

First of all, quantitative trading is requiredPossess a high level of technology and expertise, need to understand computer programming, network security, market analysis and other aspects of knowledge.

Secondly, quantitative trading is requiredFast trading system and high-speed internet connection, which is relatively difficult for individual investors.

In addition, quantitative tradingThe frequency of transactions is extremely high and requires constant monitoring and adjustmentIt is also a huge challenge for individual investors.

However, with the continuous development of technology and the continuous growth of investors, more and more individual investors have begun to try quantitative trading. They are constantly exploring opportunities in quantitative trading by learning the relevant knowledge, using efficient trading systems and network connections. Although the threshold and risk for individual investors to participate in quantitative trading are larger, it is not completely impossible, such as jellyfish quantification, which has a relatively low threshold, which is a relatively professional quantitative trading software in the industry, which can carry out quantitative functions such as high-frequency trading.

3. Advantages of quantitative trading

Compared with the traditional trading method, quantitative trading has the following advantages:

1. Efficient and fast

Quantitative trading utilizes computer programs and fast internet connections to enable fast trading operations in rapidly changing markets. This enables quantitative trading to respond quickly to market changes and obtain ultra-short-term profits.

2. Low risk

Quantitative trading is extremely frequent, and the amount of capital per trade is relatively small compared to traditional ** trading, so the risk is relatively low.

3. Adapt to market changes

Quantitative trading uses computer programs for trading operations, which can adjust trading strategies in a timely manner according to market changes and adapt to market changes.

Quantitative trading is an investment method that uses computer programs and fast internet connections to trade in a very short period of time. Although the threshold and risk for individual investors to participate in quantitative trading are relatively large, it is not completely impossible. Compared with the traditional trading method, quantitative trading has the advantages of high efficiency, speed, low risk, and adaptation to market changes.

For some investors with technical and professional knowledge, quantitative trading may be a more flexible and efficient way to trade.

Quantitative investment is a standardized trading method in the investment process, which mainly includes three links: stock selection, purchase and sales. In quantitative trading.

In the process, you can do this: 1. According to the historical data, carry out multi-factor stock selection, for example, the price-earnings ratio.

Price-to-book ratio, price-to-sales ratio.

and so on as stock selection criteria, and select some ** that are undervalued or in a reasonable area. 2. Trade with the trend, that is, sell in the trend of ** and sell in the trend of **.

1. How to quantify trading?

1. According to the historical data, multi-factor selection. For example, the stock price yield.

Stock price yield, market yield, etc. are used as the selection benchmark, and the value is undervalued or in a reasonable area.

2. Trade with the trend, buy in an upward trend, and sell in a downward trend.

3. Carry out reasonable warehouse management.

That is, the funnel-type warehouse management method, rectangular warehouse management method, pyramid-shaped warehouse management method, etc., are used to deal with the risk in the later stage.

4. According to the historical trend of the first class, look for the support position and pressure position of the first one, and use this as the stop loss and stop loss point, in the pressure position, the support position of immediate sales when the income is obtained, and the immediate sale of the loss to avoid greater losses.

2. How to do quantitative trading

Ensure that all activities of the management company comply with the provisions of the regulations, and ensure that the fees paid to the management company and the calculation of returns paid to investors are in accordance with the regulations and contractual provisions. At the same time, the Board of Trustees is responsible for supervising and verifying whether the custodian is legal, compliant and efficient.

Accounting, accrual and payment of remuneration, transfer of funds, and distribution of income, etc. The Committee shall also have the power to examine the details of the personal accounts and transactions of the officers of the management company and the Trustee Authority. It also regularly reviews transactions, net asset value, and service contracts, and submits relevant reports to regulatory authorities on a regular basis.

3. What problems can the emergence of quantitative trading systems solve?

1.Reduce the impact of objective factors (emotional trading), so as to achieve the purpose of stable and continuous profits.

2.There are strict risk controls.

mechanism, which can eliminate problems such as excessive trading, heavy trading, and large losses.

3. Liberate the best time and reduce the time consumption caused by repetitive work, so as to achieve the purpose of improving efficiency.

For **, quantitative trading is a "difficult opponent". However, this opponent is not without flaws, and we can use the flaws of quantitative trading to deal with the counterparty of quantitative trading. First of all, many quantitative trading institutions use deep learning strategies based on historical statistics, so they will backtest historical data.

In view of this, we need to be one step ahead, and on the premise of confirming that there is no problem with the fundamentals, we dare to make ** actions at ** or ** historical lows, and dare to do sell actions near historical highs. Secondly, the advantage of quantitative trading lies in the speed of trading, so we should try to do as little impulsive trading as possible to "fight with others", and try to do swing trading that is beneficial to ourselves based on the fundamentals and market direction. In this way, quantitative institutions will not easily harvest**.

Again, it's important to recognize that quantitative institutions are not "invincible." In the recent extremes, many domestic quantitative institutions have suffered a large number of net worth drawdowns. Therefore, don't be psychologically afraid of quantitative institutions, and dare to play with them.

In many cases, investors will buy and sell through the golden cross and death fork, but in this case, there is only a small probability that there will be a profit, so only probability of probability statistics will make the probability of profit higher.

1. The concept of quantitative trading.

Quantitative trading refers to the use of advanced mathematical models to replace manual subjective judgment, 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 reduce the impact of investors' emotional fluctuations, and avoid making irrational investment decisions when the market is extremely fanatical or pessimistic. At present, the scale of domestic quantitative investment is about 3500-400 billion yuan, of which 120 billion yuan is publicly offered, and the rest is private quantification, with more than 300 companies, accounting for 3% (more than 9,000 private equity managers), with an amount of about 200 billion yuan. The overall scale of China's **** exceeds 16 trillion yuan, including 14 trillion yuan in public offerings and trillion yuan in private placements.

Optimistically estimated, the scale of quantitative management accounts for 1% of the domestic ****.

2. Ways for shareholders to deal with quantitative trading.

Understand what the historical data of an investment is, whether it is a stock price or a company's financial data and other fundamentals; The way of analysis is to analyze the index formed by **, or to analyze the company's market share, profitability and other fundamentals; How are probabilities calculated? If you use the MACD indicator, you have to count how much the golden cross can win and whether it is universal. If it is based on fundamental analysis, the success rate of fundamental investment should be counted.

The biggest problem is the lack of necessary "probability statistics" to truly reflect one's own investment logic, so as to do untimely business.

To sum up, the only way for investors to trade quantitatively in English is to conduct probability statistics as early as possible, and find the highest probability of investing in the highest price. However, it is still recommended that you should carefully consider when making an investment before making an investment.

Quantitative trading refers to the process of replacing human subjective judgment with advanced mathematical models, and using computer technology to select a variety of "high probability" events that can bring excess returns from huge historical data to formulate strategies, and then trade.

In fact, we can simply understand it as a trading method that summarizes certain rules, and then sets up the computer to capture the signal, and when the conditions are triggered, the computer automatically ** or sells. Its essence is to execute the artificially summarized trading model through the computer, so as to achieve a more professional, calmer, faster and more comprehensive trading purpose. Of course, you can also understand quantitative trading as the prototype of AI investment.

1. Wide coverage of informationQuantitative trading can scan the whole market's ** and abnormal movements, capture various signals and analyze and act in a timely manner, and the coverage will be wider than that of human operations.

2. Strong trading discipline:Since quantitative trading is a computer execution strategy, it will automatically trade when the conditions are triggered, so it will not be affected by the psychology of greed, fear, luck and other aspects of human nature, and will strictly follow the discipline of trading.

3. Fast transaction response speedDue to the various trading conditions set in advance, the computer will naturally operate much faster than the human operation, and can sell chips earlier** or earlier.

So is quantitative trading necessarily profitable? In fact, this is not the case, the core of the success of a quantitative trading is the strategy and effectiveness, and the computer is more about executing the strategy, if the strategy is wrong, the faster the trade, the greater the loss.

In addition, it is difficult for the current domestic quantitative trading to achieve a very comprehensive simulation of the trading strategy of the trading master, both for technical reasons and for the comprehensive ability of the strategy team.

Another point is that the market is constantly evolving, and if the quantitative trading strategy cannot keep up with the market changes in time, it is difficult to continue to make money.

Therefore, quantitative trading is not as simple as writing a program and then lying down to win and make money, otherwise big money will be invincible in the world, as for the future similar to the situation of alpha dog defeating Lee Chang-ho, it may also indicate a big change in the capital market, and it can even be said to be a disaster.

But in any case, we need to understand quantitative trading and try some solutions, otherwise we can only be beaten passively.

For **, there is a certain threshold for quantitative trading. **If you want to do quantitative trading, you must have your own programmed potato selector stock system, programmed trading system and risk early warning system. Under the premise of having these three skills, ** must have at least 500,000 yuan of funds to have enough trial and error space to participate in quantitative trading.

As a result, there are very few investors who perform quantitative trading.