What is quantitative trading ？ Quantitative trading is also a kind of transaction . In a narrow sense, quantitative trading refers to the transformation of trading terms into procedures , And automatically order . Quantitative trading in a broad sense is a comprehensive trading system , That is, under a series of trading conditions , Intelligent decision system , Combine rich experience with trading conditions , Manage risk control in the process of trading .
Quantitative trading system consists of four main parts ：
Strategy identification ： Search strategy 、 Tap advantages 、 Determine the frequency of transactions .
Backtesting ： get data 、 Analyze strategy performance 、 Eliminate deviations .
Delivery system ： Connect brokers 、 Automating transactions 、 Minimize transaction costs .
Risk management ： Optimal capital allocation 、 Most of them have reading notes or Kelly's rule 、 Trading psychology .
What are the benefits of a quantitative trading system ？
- Compared with traditional manual methods , Quantitative trading can be measured back in a few minutes , Its efficiency is hundreds of times higher than that of traditional manual labor .
- For a trade , Such a large verification is obviously difficult to complete , But quantitative trading can be judged quickly and accurately . And quantitative trading can also use the principles of statistics and mathematics to give the results objectively , Such as the withdrawal rate 、 Annualized rate of return, Sharpe ratio and so on .
- For quantitative transactions , It can be used for real-time tracking of the whole market , Can not miss any trading opportunities , Greatly improve profitability .
Quantitative trading system is a way to achieve more transactions ：
- Increase the number of currencies ;2. Increase currency trading volume
The currency with large trading volume must be the project with better capital strength or development potential in the market , This requires the trading system to find a good currency to go online , And increase the number of currencies .