1. What is the quantitative trading system app?
Quantitative trading/transaction refers to the use of advanced mathematical models to replace human subjective judgments, and the use of computer technology to select multiple "high probability" events that can bring excess revenue/benefits from huge historical data to formulate strategies and greatly reduce To avoid the impact of investor/investor sentiment fluctuations and avoid making irrational investment/investment decisions when the market is extremely fanatical/hot or pessimistic.
2. Two trading methods of quantitative trading system app
1. Statistical arbitrage/profit
Statistical arbitrage/profit is an arbitrage/profit based on the historical statistical law of capital/product price/grid
The main idea of statistical arbitrage/profit is to find out the most relevant pairs of investment/investment products, and then find out the long-term equilibrium relationship (cointegration relationship) of each pair of investment/investment products. (Residual error of the cointegration equation) When the deviation reaches a certain degree, start to build a position, buy relatively undervalued varieties, short sell relatively overvalued varieties, and gain/profit after the equivalent spread returns to equilibrium.
2. Algorithmic trading.
Algorithmic trading/trading, also known as automatic trading/trading, black/box trading/transaction, or machine trading/trading, refers to the method of issuing trading instructions by designing algorithms and using computer programs. In trading/transaction, the range that the program can determine includes the choice of trading time, the price of the transaction, and even the amount of assets/products that need to be traded in the end.
The main types of algorithmic trading are:
(1) Passive algorithm transaction/transaction, also called structure algorithm transaction/transaction. In addition to using historical data to estimate the key parameters of the transaction/transaction model, the transaction/transaction algorithm will not actively choose the timing and quantity of transactions/transactions according to market conditions, but will conduct transactions/transactions in accordance with an established trading policy. .
(2) Active algorithmic trading/transaction, also called opportunistic algorithmic trading/transaction. Such trading/transaction algorithms make real-time decisions based on market conditions, judging whether to trade/trade, the number of trades/trades, and the price/rate of trades/trades, etc.
(3) Comprehensive algorithmic transaction/transaction, which is a combination of the former two. The common method of this type of algorithm is to first split the trading/trading instructions and distribute them in several time periods. The specific trading/transaction in each time period is determined by the active trading/trading algorithm. The combination of the two can achieve effects that a single algorithm cannot achieve.
There are three trading strategies for algorithmic trading/transaction: one is to reduce transaction fees/use; the other is arbitrage/profit: the third is to make market.