Image source: Kena Quantitative Investment
"Do you speculate in futures?"
"Don't speculate, I earn hard-earned money, and you earn heartbeat money."
This is a dialogue between amateurs and futures investors. In fact, the high risk and high return of futures make many participants jumpy. However, the introduction of domestic quantitative trading in recent years is gradually changing this situation.
Last Saturday, the only local futures company in Dongguan, the relevant investment institution of Hualian Futures Joint Quantitative Trading, held a quantitative trading strategy exchange meeting entitled "Quantitative Trading, Opening the Door to Wealth" in Dongguan. Contrary to the general investment report, the meeting was crowded. At last, nearly 200 investors crowded into the meeting room with more than 0/00 people originally scheduled for/kloc, and even the air conditioner of the hotel was fully turned on.
Quantitative trading has developed rapidly in recent years.
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. At present, the vast majority of brokers and futures companies have started quantitative trading, and some private equity firms and individual investors have also begun 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 new investment methods have emerged in the domestic investment market, which take stock index futures, commodity futures and bonds as investment targets and quantitative investment and programmed trading as tools, and have achieved relatively stable 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 currently 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.
Quantitative investment is successful in "testing water" in Dongguan
In Dongguan, there are also many institutions that try to quantify investment, including securities companies, futures companies and private equity investment companies. Judging from the current situation, it can be described as "testing the water."
For example, Hualian Futures launched a series of "Jinwanjia" programmed products last year, among which "Smart Win Stock Index Portfolio Strategy" was its first specialized personalized trading model portfolio. Through the quantitative analysis of the operating characteristics of stock index futures in recent two years, this model combination has formed eight sets of unique programmed trading models. Since the model was put into operation, the highest annualized rate of return has exceeded 60%, and the lowest has reached 26%, but the highest cash withdrawal is less than 10%.
Guosen Securities Dongguan Sales Department has set up a "Quantitative Investment Center". Last year, more than 20 customers of the business department participated in the programmed trading of stock index futures in different periods. The annualized rate of return of the best performing accounts is close to 40%, and all accounts outperform the market.
Dongguan Guanxiang Capital Investment Co., Ltd., which issued the first multi-strategy hedge fund in China, is a "fan" of quantitative investment. At present, all the products in the company's special account adopt quantitative investment, and the income is good. For example, the net value of a wealth management product in a special account increased by 4 1% from June 19, 2003 to May 19.
"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 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%, and the big bear market in 2008 was 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 income, and not excessively 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.
Investment dictionary
What is quantitative trading?
Quantitative trading, 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.