Quantitative trading has its own defects, how much do you know? The following is my personal understanding:
1. There is no short-selling tool in the A-share market. The amount of securities lending for individual stocks is so small that it can be ignored. That is to say, there is no hedging tool for quantitative trading, and you can only do long to make money. Quantitative trading last week when the market was bleak also difficult to protect themselves;
2. The current T+1 trading system in the market is doomed to quantitative trading. If you want to earn the intraday price difference, you must open a position. Recently, there have been many stocks with an A-shaped trend. Unilateral decline has no profit margin for quantitative trading;
3. The price limit system determines that this part of the capital has limited space to raise funds. The amplitude of the Shanghai and Shenzhen main boards is controlled within 10%, and the Science and Technology Innovation Board and the Growth Enterprise Market are controlled within 20%. The limitation of space also determines the scope of quantitative trading operations very small;
4. As far as the current weight of quantitative funds is concerned, it is difficult for them to leverage the quality of the market with a large market value. If the funds in the market value of more than 100 billion are released, it will be a disaster for quantitative funds. It is also difficult to control, there is not enough liquidity for them to play by themselves in many cases! Therefore, if you are afraid of quantitative trading, you can completely give up the targets with a circulating market value between 20 billion and 80 billion yuan in the stock selection market, and focus on selecting stocks with a large circulating market value and relatively stable daily trends. It will effectively avoid intraday shocks caused by quantitative trading;
5. Many quantitative trading funds completely avoid the ST sector, which is also an area that retail investors need to focus on. This year, with the rampant quantitative trading funds, many ST sectors are in the limelight, and many representative stocks have appeared, such as st Huayu, st Chengxing, etc., you can choose from the ST section of this year's annual report to determine the stars and decaps!