Quantitative trading refers to the use of advanced mathematical models instead of artificial subjective judgments, and the use of computer technology to select a variety of "high probability" events that can bring excess returns to formulate strategies, which greatly reduces the impact of investors' emotional fluctuations and avoids making irrational investment decisions under extremely enthusiastic or pessimistic market conditions. Quantitative trading has the following characteristics:

1, discipline Make decisions according to the running results of the model, not by feeling. Discipline can not only restrain human weaknesses such as greed, fear and luck, but also overcome cognitive bias and can be tracked.

2. systematize. The specific performance is "three more". First, a multi-level model, including asset allocation, industry selection and specific asset selection; Second, from multiple perspectives, the core idea of quantitative investment includes macro-cycle, market structure, valuation, growth, profit quality, analyst's profit forecast, market sentiment and so on; The third is multi-data, that is, the processing of massive data.

3. Arbitrage thought. Quantitative investment captures the opportunities brought by mispricing and mispricing through comprehensive and systematic scanning, so as to find out the valuation depression and make profits by buying undervalued assets and selling overvalued assets.

4. Probability wins. First, quantitative investment constantly digs out the expected repetitive laws from historical data and uses them; The second is to win by combining assets, not by a single asset.