What is quantitative capital? What do you know about quantitative funds? Under what conditions will quantitative funds break out? The following is for you from Bian Xiao. If you take too much money to quantify it, will it explode? I hope you like it.
Will it explode if you spend too much money to quantify it?
When doing quantitative trading, there is no direct correlation between how much money you get and whether you will explode. Quantitative trading is a way to make trading decisions by using algorithms and mathematical models, and its core lies in obtaining market opportunities through systematic methods and strategies.
Quantitative fund refers to the funds used for quantitative trading. The amount of funds is usually determined according to the individual's risk tolerance and investment plan, and is not absolutely determined by the quantitative transaction itself.
The risk of short positions mainly depends on the design, execution and risk management ability of trading strategies, rather than the simple amount of funds. Generally speaking, quantitative traders should consider risk management factors when designing trading strategies, such as setting reasonable stop-loss points, controlling the size of positions and setting appropriate risk limits.
Regarding the specific issues of quantitative trading and fund management, it is recommended to consult professional investment consultants or institutions engaged in quantitative trading for more detailed personal advice.
What is quantitative capital in the stock market?
Quantitative fund is a fund with higher returns through professional statistics and then selecting some funds with higher returns to invest, in pursuit of stability and sustainability. The quantitative fund not only has the decision of the fund manager, but also combines the quantitative model, which is the combination of human and artificial intelligence, so the quantitative model can avoid people's impulsive, subjective and blind speculative thoughts. The difference between quantitative funds and general funds lies in:
Ordinary funds generally do not actively pursue returns, but simply copy the trend of the theme and the underlying index. The primary purpose of fund managers in investing is to reduce tracking errors. There are also some ordinary funds that actively invest in order to obtain income, but the rise and fall of funds are completely affected by the investment strategy of fund managers. Assuming that the fund manager chooses stocks alone, it is inevitable that there will be some artificial investment ideas.
There are also quantitative hedge funds in the market, which are based on professional statistical data, and then choose some hedge portfolios with higher returns to hedge risks, such as choosing derivatives such as futures or options.
What is quantitative capital?
Quantification, as a concrete application of mathematics in the field of financial investment, uses computers to analyze and screen massive market data, and extracts including but not limited to market factors, fundamental factors, growth factors and value factors. , and through a unique model to build a portfolio, and constantly optimize and adjust.
Its advantage is that investment decision-making is completely based on strategic model, and it is not influenced by subjective emotions and preferences of investment managers. At the same time, this is also its disadvantage. Once the external environment changes greatly, the original strategic model may fail, thus affecting the fund's income.
What happens when futures explode?
After the futures burst, investors will suffer serious losses. At this time, they can only choose to cover their positions or be forced to close their positions by futures companies without additional margin. In addition, futures companies have the right to recover debts after liquidation. For investors who owe a huge amount of money, they can negotiate with the futures company to see if they can repay it in installments, or with interest-free or reduced interest rates.
How to judge the shortage of available margin
Before we know how to judge whether the available margin is insufficient, let's first understand the degree of risk, which is equal to the occupation of margin/customer's rights and interests. For a simple example, if a customer's total account equity is 65,438+10,000 yuan, and the purchase of a futures product takes up 80,000 yuan, then the risk level of this customer is 80%. When the risk degree exceeds 65,438+000%, it means that the available margin is insufficient and there is a risk of being leveled. There are two preconditions for the explosion. One is that the position is too heavy and the margin is too high. The second condition is that the available margin is insufficient due to unfavorable market fluctuations. Therefore, controlling the position and setting a high probability stop loss can avoid the occurrence of short positions. In addition, most futures trading software now have risk indicators on the trading interface.