High-frequency trading can also be said to be quantitative trading, but quantitative trading is not just high-frequency trading. In other words, high-frequency trading is a part of quantitative trading, a form . Both are inevitable products of the rapid development of the capital market and the computer field .
In recent years, the rapid development of the domestic big data industry chain and chips, and the large data processing required for investment are inseparable from the progress of modern intelligent technology; on the other hand, many universities in our country have provided us with a large number of mathematics, statistics, Talents specialized in computer research and development and financial engineering enable real operations of various trading strategies; in addition, institutional investors also provide soil for these two investment methods in the cultivation and growth of talent reserves.
So what is the difference between quantitative investment and high-frequency trading ?
(1) The basis of quantitative investment is the construction of data models. Through market screening, products with potential investment value and low valuation are selected, and then traded through strategies, oriented to the final profit; while high-frequency trading is based on A series of data codes that operate efficiently , conduct securities trading through extremely short transaction time and extremely high transaction frequency. Many of the transactions may be negative, but they will still be traded in a fast-in and fast-out manner. In the end, depending on the income, it is also possible Make money through handling fees.
(2) Quantitative investment takes a long time , and the holding time ranges from a few days to several months, and the income is determined according to the changes in the selected stocks; while high-frequency trading means that thousands of transactions occur in a very short period of time. Even tens of thousands of transactions will not be held overnight under normal circumstances, so the frequency of high-frequency position changes is much higher than that .
So, which of these two investment methods is better?
The development of high-frequency trading in the beautiful country market is relatively mature, the capital market has a long history, there are many institutional investors, and the matching conditions of the exchange are very sufficient, which is currently unmatched by the domestic capital market. Even the investment market in Hong Kong cannot fully follow up.
However, the domestic capital market has also developed very rapidly in recent years, and the regulatory system and the prevention and control of financial risks have also been gradually strengthened. However, due to the small number of institutional investors in the market, mainly retail investors, quantitative investment methods have gained more Through the application of Yiwanghang's quantitative data model for stock selection, some stocks with potential excess returns or undervalued by the market can be formed into a portfolio, so that they can play a group role, and at the same time reduce the unsystematic risk of individual stocks.
In the final analysis, quantitative investment and high-frequency trading are both products of market evolution. They are both developed in combination with the needs of the market and investors. There are some who have lost their fortunes and some who have made a lot of money. It is inevitable on the road to investment. risk