The simplest understanding of quantitative trading is to use mathematical models to verify and solidify these laws and strategies, and then strictly execute automated transactions through programmed transactions; if quantification is separated, quantity refers to the rhythm of transactions, and transformation refers to the tools of execution. Quantitative robots refer to machines that strictly implement trading strategies.
In layman's terms, where is the buying point and selling point, it is first compiled into a program format, and then the transaction is completed through the operation of the robot.
So, are all quantitative bots the same? No; the quantity mentioned above refers to the trading strategy, which is first written based on factors such as people's thoughts, experience, knowledge reserves, etc. Everyone's trading habits and investment levels are different. Some people like to hit the board, and some people like to buy the bottom. So quantitative trading is a general term. When it comes to specific transactions, it still depends on people to quantify the trading results of robots.
Will robot trading be able to make money ? Certainly not. Strategies can be divided into many types according to basic conditions. Of course, the best trading strategy should be a risk-free arbitrage strategy. But this strategy cannot be written by everyone, or not every market and market is also suitable, or not everyone can find opportunities and techniques for risk-free arbitrage. Since it is a risk-free arbitrage, it must have capital, market, equipment and other restrictions. Of course, if everyone wants to play risk-free arbitrage, it will definitely not be possible.
Can retail investors use the robots of Yiwangxing Quantitative Strategy ? sure.
If you have a reliable trading model that can be copied, then just find a programmer and ask him to write it for you, or you can use your own quantitative trading. Of course, you can also purchase the Quantitative Trading System of the E-Net Bank platform, which provides complete system services, including market data updates, multiple trading strategies, operating platforms, trading strategists and other operational guidance, allowing retail investors to perform quantitative transactions without worry .
Here comes the question, if the entire market is quantitative trading , how should we deal with the trend of the entire market being flooded with robots ? In fact, quantization is not such a terrible opponent. In the final analysis, quantitative trading is also based on artificial consciousness, but compared to manual trading, robot trading is faster, even reaching millisecond trading; but the faster the speed, the server settings The requirements are also higher, so robot trading can better grasp the market sudden change than manual operation.
Although it has not been made public, quantitative trading has already appeared in the market in the late 1990s, and many market value management teams are also equipped with quantitative trading tools. But the market is constantly improving. Although quantification can strictly implement trading strategies, it cannot have artificial contingency thinking and evolutionary thinking. Therefore, in many cases, quantitative trading still needs to be combined with manual operations to be perfect. In this case, still Will leave a lot of remorse and regret of the transaction .
In fact, traders do not need to demonize or worship quantitative trading too much. Because the core of the quantitative algorithm is still a human-designed strategy model, and due to the changeable market, mechanically selecting one or several strategies cannot be done once and for all. Therefore, instead of paying too much attention to the scourge of quantitative trading, it is better to dive down to study the market and company fundamentals, delve into your own stock selection mode, and let quantitative funds be used for yourself, just as the previous nuclear button and anti-nuclear button market in the A-share market. The law that comes out is that things must go against the extreme, and no transaction can override the market, and quantification is no exception.
Is quantitative trading sure to make money? The answer is no. Taking the US stock market as an example, the US stock market plummeted before the end of March last year, and then rebounded rapidly in a "V-shaped" at a rate once in a century. However, the performance of the four largest quantitative hedge funds in the world: Renaissance , Two Sigma, Bridgewater and AQR all fell sharply in 2020.
In 2020, the average loss of U.S. stocks based on the quantitative equity market neutral strategy this year reached 16.46%, while the average loss of the entire quantitative fund industry reached 8.48%, which is the worst performance among all fund investment methods.
The main reason for the loss of money in quantitative trading is not only its opacity and complexity that managers do not really understand the reasons for the failure of the strategy, but more importantly, the algorithm model trained on historical data cannot accurately predict beyond history and extremes. Due to the change of style in the market, large losses are more likely to occur when encountering extreme market conditions.
Quantitative trading is generally divided into low-frequency, medium-frequency, and high-frequency trading. The market is always full of various robots. There are a thousand trading methods for a thousand strategists. There are many examples of quantitative trading overturned in history. , countless.
Investment is not black and white, and there is no one model that can be 100% guaranteed to make money. And the more stable the mode, the more prerequisites it needs; just like if a fighter jet wants to fly fast, its fuel standard must be much higher than that of a commercial airliner. In fact, retail investors are often more suitable for the fool model, which is a simple buying and selling model. Like some investors, they can make a lot of money by buying a stock all the time and not caring about its rise and fall.
Identity attributes and game rules are things that are hard to change, but no one listens to them. They always want to pursue super high returns, or super high skills. To be honest, very few people can achieve it in the end. If the situation in the stock market can be restored, you will find that the short-term road is full of corpses of retail investors, and a few masters stepped on the corpses of retail investors in the end, then we still have to be self-aware.