QuantitativeTrading, that is, using modern statistical and mathematical tools, with the help of computers, establishes quantitative models, formulates strategies, and trades in strict accordance with established strategies. Specifically, it can be divided into high-frequency trading and non-high-frequency trading, in which non-high-frequency trading is suitable for ordinary individual investors and small and medium-sized institutions.
Quantitative trading replaces manual subjective judgment with advanced mathematical model, and uses computer technology to select a variety of "high probability" events from huge historical data to make strategy, which greatly reduces the influence of investor's emotional fluctuation and avoids making irrational investment decisions when the market is extremely fanatical or pessimistic.
Second, the development of quantitative trading.
For most ordinary investors, quantitative trading is still a relatively unfamiliar concept, but this model has been popular in China for decades. In 20 10, domestic stock index futures went public, and the turnover increased by 1.4 times in two years, which provided an excellent trading target for quantitative trading, and domestic quantitative trading developed rapidly.
According to the data of Hualian Futures, in the first half of 20 12, the quantitative trading volume accounted for about 8% of the total trading volume in the domestic securities market, but it accounted for about 20% of the trading volume of stock index futures. Most brokers and futures companies began to carry out quantitative trading, and some private equity firms and individual investors also began to use quantitative trading products.
In fact, in the past three years or so, in the continuous decline of the stock market, traditional investment strategies have failed one after another. However, a number of emerging investment methods have emerged in the domestic investment market, with stock index futures, commodity futures and bonds as investment targets and quantitative investment and programmatic trading as tools, and have achieved relatively stable expected annualized expected returns.
"The traditional investment strategy is to invest by people's subjective feelings; Quantitative investment is based on mathematical statistical models and automated transactions are realized through computers. " Lin, head of the Wealth Management Center of Guosen Securities Dongguan Sales Department, pointed out that the application of quantitative investment covers almost all financial investment fields. With the support of computer and network, the investment strategy of human brain is written into a language program, and the trading conditions are triggered by the computer to complete the automatic trading. In fact, the traditional investment method is rigorous.
According to Hualian Futures, quantitative investment is mainly used for futures trading, ETF arbitrage, conditional stock selection and warrant arbitrage trading. Mainstream platforms include Wenhua Finance, Trading Pioneer and Pyramid. In addition, platforms such as Multicharts, Longsoft, Master, Leopard and Yesterday are also widely used in the industry.
Third, the characteristics of quantitative trading
"The characteristic of quantitative products is that they can be profitable at any market stage." Cai, an investment consultant of Guosen Securities Dongguan Sales Department, told reporters that quantitative products are generally long-short hedging, so both bull markets and bear markets can make profits, but there are also weaknesses, that is, bull markets can't win ordinary stock investment products. "The big bull market in 2007 was about 30% expected annualized expected return, but the big bear market in 2008 also had an expected annualized expected return of about 15%."
"Capital will not always move in a straight line in one direction, and capital appreciation is a difficult and tortuous process." Jiang, CEO of Guanxiang Capital, reminded that retracement is a pause in the progress of capital growth and can also be regarded as the opportunity cost of futures trading. "Therefore, we must correctly treat the optimization results of strategic parameters, not deliberately pursue the highest expected annualized expected return, and not over-fit the market; At the same time, adhering to the correct trading concept and trading method, strict implementation and perseverance are the prerequisites for sustained profitability. "
The application of quantitative investment covers almost all financial investment fields. With the support of computer and network, the investment strategy of human brain is written into a language program, and the trading conditions are triggered by the computer to complete the automatic trading. In fact, it is the rigor of traditional investment.