With the help of modern statistics and mathematics, quantitative investment theory uses computer technology to select all kinds of "high probability" events that can bring excess returns from huge historical data to formulate strategies, verify and solidify these laws and strategies with quantitative models, and then strictly implement the solidified strategies to guide investment in order to obtain sustained, stable and above-average excess returns.

Quantization is not a method put forward as the opposite of qualitative analysis from the beginning. It solidifies the technical analysis strategy in qualitative analysis into a model, replaces the part that can be executed by computer in the process and greatly optimizes its effectiveness.

Quantitative trading strategy covers almost the whole process of investment, including quantitative stock selection, quantitative timing, stock index futures arbitrage, commodity futures arbitrage, statistical arbitrage, algorithmic trading, asset allocation, risk control and so on.

Programmatic trading:

Programmatic trading system refers to the systematization of trading strategy after the designer calculates the logic and parameters of trading strategy through computer program.

When the trend is established, the system sends out long and short signals to lock the volume and price pattern in the market, effectively grasp the trend of price changes, and enable investors to easily grasp the trend band in the rising or falling market, and then profit from the band. The operation mode of programmed trading does not seek performance first, does not seek to earn exaggerated profits, but only seeks long-term stable profits, grows in the market, and achieves the compound interest effect of wealth accumulation. After a long period of operation, the annual interest rate can be kept above a certain level.

Composition of the trading system:

Bottom line: extremely open model (strategy) design, dynamic risk management technology, accurate error correction feedback test and fast order placing. These four items constitute the whole programmed trading system.

The decision-making of programmed trading depends entirely on the systematic and institutionalized logical judgment rules of its own trading ideas. With the help of the computer, all kinds of trading ideas are transformed into a trading mode of computer programming language, that is, the computer sends trading signals instead of manpower, and then the computer automatically executes the order placing program according to the entrustment mode sent by the system users.