What is Quantitative Trading

Quantitative Trading refers to the use of modern statistical and mathematical methods, utilizing computer technology to conduct securities investment trading.

Quantitative trading replaces subjective human judgment with advanced mathematical models. It uses computer technology to select multiple "high-probability" events from vast historical data to formulate strategies, reducing the impact of investor emotional fluctuations and avoiding irrational investment decisions in extremely bullish or bearish market conditions.

The strategy processing logic needs to consider factors such as product selection, timing, position management, and stop-loss/take-profit. It undergoes testing through massive data simulation and mock operations, and allocates positions and funds based on certain risk management algorithms to minimize risk and maximize returns. After strategy implementation, it is screened and upgraded through historical data backtesting and repeated trading verification.

Quantitative Trading

Characteristics of Quantitative Trading

1. Discipline

Decisions are made based on model results, not feelings. Discipline can overcome weaknesses in human nature such as greed, fear, and luck, as well as cognitive biases, and is traceable.

2. Systematic

Manifested in "three multiples": multi-level (models for asset allocation, industry selection, and specific asset selection), multi-angle (considering macro cycles, market structure, valuation, growth, earnings quality, analyst forecasts, market sentiment), and multi-data (processing massive data).

3. Arbitrage Thinking

Quantitative investment captures opportunities from mispricing and misvaluation through comprehensive, systematic scanning, discovering valuation troughs, and profiting by buying undervalued assets and selling overvalued ones.

4. Probability-based Success

Quantitative investment continuously mines and utilizes patterns likely to repeat from historical data, and relies on asset portfolio success rather than individual asset success.

AI Models

To help you confidently plan your trades, we provide top-tier market analysis tools, 3 quantitative models

Event-driven Model

1. Event-driven Model

This model diversifies investment across stocks, cryptocurrencies, gold, oil, and other futures products. Based on big data, it monitors information flow, quickly filters out information with significant impact on investment product prices, makes accurate predictions on future price trends, and automatically buys in advance to obtain excess market profits by leveraging the time difference with market investor information.

Funds Monitoring Model

2. Funds Monitoring Model

This model also diversifies across stocks, cryptocurrencies, gold, oil, and other futures products. Based on big data, it monitors capital flows, discovers market institutional intentions through institutional transaction funds, and automatically follows up operations to obtain synchronous profits.

Stock High Frequency Burst Model

3. Stock High Frequency Burst Model

This model mainly tracks the stock market, focusing on US stocks and including mature stock markets globally. Based on big data, it monitors information and capital flows from multiple aspects, makes accurate predictions on future price trends of investment products, discovers market institutional intentions, and automatically follows up operations to obtain excess profits.