Advantages of programmed trading: people's thoughts are used, but computer execution has two advantages: (1) First, it is faster, and computer ordering is faster than manual operation. The same opportunity, computer orders can be seized, but people may not be able to seize it. (2) Through programming, one person can make 10 computers execute their own trading ideas at the same time, and one person can operate more accounts and more funds.
It is also based on the above factors that most institutions adopt programmed transactions, which can be said that programming is an essential tool for institutions. It is precisely because the institution has gone through the procedure that the result of "it is accidental for retail investors to make money, and it is inevitable for institutions to make money".
2. Is the programmed transaction successful? With the rapid development of programmed trading team, it can be said that the annual growth rate of programmed trading is nearly 200%. Engaged in programmatic trading, some people are happy and some people are worried, and some friends question it. Can programmed trading succeed?
I have a little experience in this field in ancient times, because I have more contacts with customers in this field. Let me say my opinion objectively.
Let's talk about the misunderstanding first: At present, there are three misunderstandings in the general fraud of novice programmed transactions.
First, I think programmatic trading is an artifact, so you can make money with it?
Second, I think that if we want to make huge profits and make a lot of money, we must use programmed trading.
Third, after using it for a period of time, do you think programmed trading is useless?
To understand programmed trading, we must first understand its advantages and disadvantages.
There are many advantages to online programmatic trading, but I think there are two main ones:
First, to avoid the weakness of human emotional fluctuations, which I believe everyone agrees with and is very clear. As for what is said on the Internet, it is helpful for strict stop loss and risk control and comprehensive planning in advance. ) is an extension of this advantage.
Second, reduce the cost of slip points. Some friends may not understand, especially those with poor network hardware equipment. The biggest problem of programmatic trading is slippage. How can it be said that it contributed to the sliding point cost? Sometimes, every time we slide the point, there will be several price points. But why don't we usually say slip point when we operate manually? Because of manual operation, your slip point can't be calculated at all, but his slip point does exist. Let me suppose an example. For example, I broke through yesterday's peak today, and I want to open more orders. He can respond instantly and send commands immediately within tens of milliseconds. What about handwork? Even if you place an order with one click, you see him break through. This requires a reaction process. One-click billing takes time.
There are gains and losses, and programmatic trading also has shortcomings.
His greatest advantage is to avoid people's emotions, and his greatest disadvantage is that people's immediate will cannot be transmitted to the program, especially the sudden news and sudden policy situation. This is the biggest deficiency of programmatic trading. But this shortcoming can be weakened and avoided, especially for the vulnerable groups. Procedural transactions may be handled better than you, that is, procedural transactions are small-cycle, and external influences such as small-cycle procedural transactions and policies are minimal. Because he can respond to the price in time, programmed trading can also adjust his trading in time, which is one reason why most mature quantitative companies abroad do small-cycle business.
I see that some markets are selling daily trading strategies, saying that large-cycle programmed strategies are easy to succeed, while small-cycle programmed strategies are difficult to succeed. In fact, this idea is problematic, or deceptive. It is better to say that the historical test of large-cycle programmed strategy is easy to get high marks than that of large-cycle programmed strategy, because his K-line data is few, so it is easy to over-fit the past historical data. As a result, in the past, the history measured by one root was very beautiful, like the daily cycle, with only more than 200 K-lines a year and more than 600 K-lines in three years. We all know the general trend in the past, and it is easy to get good results by adjusting parameters, but is that useful? It's no use, the firm offer will die miserably.
Therefore, under the same test cycle, the report of small cycle strategy is more convincing and effective than that of large cycle strategy, if the results are exactly the same.
In ancient times, it was a bit off topic. Back to the topic, can programmatic trading succeed? Did anyone succeed? I don't think this problem is a problem at all, because so many people come in to program and trade every year, which explains the problem. No one is blind or stupid. Without advantages, who will be attracted? Simmons' higher yield than Buffett also illustrates this point.
Programmatic trading can be successful, but keeping the right attitude is not the holy grail. Not everyone will succeed in using it. It can only be said that it is a tool, which has obvious advantages over manual trading and helps to improve success. How to use this tool well is the key. A sword hurts people, that is, it is not used well.
The ultimate goal of programming transaction is not profiteering. The ultimate goal of using programming should be to make your investment more stable. For example, Simmons and others, the profits of tens of percent increase steadily every year, which is the ultimate goal of programming. All successful programming companies don't have the huge profits you think. If you come with the mentality of profiteering and want to multiply it several times a year, your final result is bound to be disappointed.
3. Advantages and disadvantages of programmed trading Hello! The advantage of programmed trading is that 1 avoids human subjectivity, which is both the advantage and disadvantage of programmed trading. In futures trading, it is people's subjective judgment that makes profits, and some excellent speculators make huge profits in futures market trading. Their subjectivity is irreplaceable by programmed trading.
But in the futures market, more investors' subjectivity can be said to be unreasonable. They should retreat when they enter and hesitate when they leave. Using programmed trading can avoid these ideas, that is, avoid the inappropriate subjectivity of most people in futures trading.
The final profit of programmed trading will be lower than that of excellent speculators, but much higher than that of ordinary investors. 2. Investment risks are greatly dispersed. Trading in the futures market is largely a winning probability event, and no one can guarantee the profit of every transaction.
So this requires us to diversify our trading, trade multiple varieties at the same time, and adopt different trading strategies to trade one variety at the same time. If all this is done manually, it will consume a lot of manpower, and some human weaknesses are inevitable.
Using programmed trading can perfectly complete the above strategy and realize the maximum risk dispersion. Disadvantages of programmed trading 1, a large amount of funds are returned. Some programmed trading models are profitable in the long run, but huge funds may be returned in the short term.
Some investors have a vague understanding of programmatic trading and think that programmatic trading is a money-making machine. Always profitable.
These investors may find that it is difficult to continue programmatic trading in this case of withdrawal of funds, thus missing out on the large profits that will appear later. 2, or will aggravate financial risks 1987, the chief culprit of the US stock market crash was once identified as the programmatic trading in the spot market.
At that time, the stock futures were lower than the share price, and index arbitrage investors would buy futures and sell stocks. If the stock price falls far enough, the portfolio insurance companies will sell futures contracts, which will lead to a new round of decline in the futures market, which will lead to further selling of stocks by index arbitrage investors, thus forming a downward cycle of self-reinforcing selling. Regardless of whether the stock crash of 1987 was caused by programmatic trading, programmatic trading at least contributed to it.
Domestic stock index futures have repeatedly delayed the listing time, and the regulatory authorities may also be worried.
4. What are the characteristics of programmatic trading? 1. The reaction speed of programmed trading is faster than that of human brain.
When trading manually, it takes at least 1~2 seconds from the eyes to the brain to confirm and then press the button to buy and sell. Futures prices change rapidly, and 1 ~ 2 seconds is enough to make the price go far, which will increase our transaction cost. If you accumulate for a long time, you will also lose a lot of wealth.
The programmed transaction is watched by the computer, and it takes only a few milliseconds (1 millisecond = one thousandth of a second) from the signal to the computer's instruction. In the ever-changing trading market, this speed allows us to get in and out at the first opportunity, reducing transaction costs and allowing traders to accumulate more wealth.
2. Programmatic trading has no human weakness.
What is the biggest obstacle to manual trading? It is the inner thought fluctuation of traders. Because different ideas keep popping up in people's minds. These ideas may interfere with trading ideas. When it is clear that there is a stop loss according to the rules, it may be because of a little hesitation in the trader's heart that he missed the best time to close the position and expanded the loss.
The biggest feature of programmed trading is to overcome the uncertainty of manual trading. The computer itself has no feelings, and it can set up continuous transactions in strict accordance with programming, which can completely achieve the stability that the human brain can't achieve. 3. Programmatic transactions can be successfully replicated.
People only have two eyes and can only observe one contract at a time, but there are many contracts with trading opportunities every day. You can only worry that you have a skill, but you can't be busy to maximize your income.
Programmatic trading can simultaneously monitor dozens of contracts and cycles. As long as you translate your successful trading experience into a programmable readable language, programming can help you replicate your success.
Programming is also a platform for research.
The biggest feature of computer is efficient data operation and intelligent data analysis. 1 min cycle has 225 K-line data. According to the calculation of 250 trading days per year, if we want to analyze the annual moving average trend of 1 minute cycle, we need to calculate at least 56,000 K-line data. It may take a few days for people to complete this statistic, but it only takes a few seconds for computers. We can use programming language to tell the computer the data we want to count, and the computer can help us complete the calculation, such as mining historical market, studying the law of K-line vibration amplitude and market fluctuation, and exploring the law of opening gap amplitude and market fluctuation of the day.
When we feel that we seem to have found some laws that we want to verify, the effect test function of the programmed platform can help us verify whether the laws are effective and the strategies are feasible on historical data. We can also improve our thinking through the strategic optimization function of the programmed platform, which greatly shortens the time for investors to establish their own trading strategies.
5. What is programmed quantitative investment? It is an investment method with data model as the core, programmed transaction as the means and absolute return as the goal. Broadly speaking, programmed trading is quantitative investment; But in a narrow sense, programmed trading is a means of trading. As far as China is concerned, at present, the definition of programmed transaction basically adopts a broad definition, that is, quantitative transaction. Among them, quantitative trading can be divided into hedging arbitrage, speculation and high frequency.
Programmatic trading is a major innovation in securities trading. In the traditional trading mode, only one kind of securities is bought and sold in one transaction, while programmed trading can buy and sell a package of securities at the same time in one transaction with the help of computer system. According to the latest regulation of the website of new york Stock Exchange (NYSE) on August 20 13, any centralized transaction of buying and selling 15 or above at the same time can be regarded as a programmed transaction. In the previous NYSE programmatic trading, it also included the condition that the total value of a basket of stocks should reach 1 100 million US dollars.
At present, there is no unified and authoritative definition of programmatic trading in academia and industry. In our country, programmed trading in the usual sense is a new type of electronic trading method, which uses computers and modern network systems to instantly complete combined trading orders and automatically place orders according to pre-set trading models and rules when model conditions are triggered. That is to say, the domestic capital market's understanding of programmed trading no longer emphasizes the scale and concentration of trading as NYSE does, but only emphasizes the importance of trading mode and computer program in trading.
Programmatic trading system refers to the systematization of trading strategy after the designer calculates the logic and parameters of trading strategy through computer program.
When the trend is established, the system sends out long and short signals to lock the volume and price pattern in the market, effectively grasp the trend of price changes, and enable investors to easily grasp the trend band in the rising or falling market, and then profit from the band. The operation mode of programmed trading does not seek performance first, does not seek to earn exaggerated profits, but only seeks long-term stable profits, grows in the market, and achieves the compound interest effect of wealth accumulation. After a long period of operation, the annual interest rate can be kept above a certain level.
The decision-making of programmed trading depends entirely on the systematic and institutionalized logical judgment rules of its own trading ideas. With the help of the computer, all kinds of trading ideas are transformed into a trading mode of computer programming language, that is, the computer sends trading signals instead of manpower, and then the computer automatically executes the order placing program according to the entrustment mode sent by the system users. Therefore, programmed trading can avoid unexpected events and make investors unprepared. Therefore, Tianjin Fangzheng Mid-term Binhai Business Department can provide you with investment advice on programmatic trading.