Quantitative trading is a computer program that compiles a specific expected return rule or strategy into a computer program. The computer calculates and sends a signal to complete the transaction by placing an order or automatically placing an order by a member.
Quantitative trading should include at least five elements:
(1) The signal system for buying and selling.
(2) The direction of the bull market or the bear market, such as using the 200-day moving average to distinguish the avoidance of systemic risks in the bear market.
(3) Position management and fund management.
(4) Risk control, using signal sources to determine the position of the stop loss, using the asset curve and equity curve to determine and manage.
(5) Casting combinations, different casting varieties, different trading systems (different functions and parameters, fast and slow), and different time period combinations, now decentralized combinations, make trading account fluctuations more stable.
What are the functions of the quantitative trading system?
1. Trading arbitrage:
The quantitative system uses modern statistics and mathematics to formulate an objective reference index. If the conditions are met, it will never be an emotional buy or sell, and it will have a high probability of obtaining a return below the average.
2. Stimulate transactions:
Certain small currencies have difficulty in trading volume or coincide with a bear market, and everyone is unwilling to trade. When the market becomes lively, a vicious circle occurs. The robot will activate the trading volume based on matching buyers or sellers in the market to prevent inappropriate fluctuations in the market.