It refers to a transaction in which buying and selling instructions are issued by computer programming in a quantitative way in order to obtain stable income. Quantitative investment, fundamental analysis and technical analysis are also called the three mainstream methods. Traditional investment methods mainly include fundamental analysis and technical analysis. Different from them, quantitative investment mainly relies on data and models to find investment targets and investment strategies.

Advantages of quantitative investment:

1 based on mathematical statistics is closer to a science, making the future easy to predict and perceive.

2, it can monitor all markets and transactions in real time all year round, but humans can't.

3. It avoids people's emotionalization, and is completely automatically executed by the machine.

4. Strictly enforce discipline. The process and risk are more controllable.

What exactly is quantification?

Let's make a popular analogy: people who buy stocks or futures are just like Chinese medicine. The final judgment result is largely based on the experience of Chinese medicine, largely qualitative, and largely depends on experience and sensory judgment; Quantitative trading is like western medicine. First of all, let the patient take pictures and test, all of which depend on medical instruments. Finally, it is concluded that the right medicine depends on the model, and the role of the model in quantitative investment is just like that of the CT machine for doctors.

The model checks and scans the whole market, and deals with it if it meets the program model you wrote (you can set your own order, etc., depending on how your model is written). When "quantification" meets "procedure", it is easy to understand programmed trading, that is, to execute quantitative trading strategy through computer programming and conduct automatic or semi-automatic order trading.