First, quantitative trading mainly uses mathematical formulas to establish models, judges future price trends through a large number of data, and selects stocks by programs. Its stock selection is very extensive, covering hundreds or even thousands of stocks, which can rule out human factors such as forced rise and falling, and is very disciplined.
Second, "quantitative transaction" has two meanings: first, in a narrow sense, it refers to quantifying the transaction content, transforming the transaction conditions into procedures, and automatically placing orders; Second, in a broad sense, it refers to a systematic trading method and an integrated trading system. That is, according to a series of trading conditions, the intelligent decision-making system combines rich experience with trading conditions to manage the risk control in the trading process.
Three, quantitative trading should include at least five elements:
(1) trading signal system.
(2) The direction of bull market or bear market, such as using the 200-day moving average to distinguish the avoidance of systemic risks in bear market.
(3) Position management and fund management.
(4) Risk control: using signal sources to determine the stop loss position, and using asset curve and equity curve to make judgment and management.
(5) Portfolio, different investment varieties, different trading systems (different functions and parameters, fast or slow) and four, different time periods are now scattered, making trading accounts more stable. 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.
5. First of all, from the perspective of participants in the global market, according to the scale of assets under management, five of the top six asset management institutions in the world in 20 18 all relied on computer technology to make investment decisions, and the scale of funds managed by quantitative and programmatic exchanges was further expanded in 20 19.
6. Secondly, more than 70% of global capital transactions are conducted by computers or programs, and half of them are conducted by quantitative or programmed managers. There will be more than 330,000 related positions when recruiting financial engineers (including keywords such as quantification and data science) on websites abroad.
Seventh, third, from the training direction of colleges and universities, more than 450 American universities have set up financial engineering majors, and the number of graduates of related majors reaches 6.5438+0.5 million each year. There is a big gap between the market demand and the number of graduates. Therefore, students of data science, computer science, accounting and related STEM (basic science) enter the financial industry to engage in quantitative analysis and application development after graduation.
Eight. Domestic market: At present, the scale of domestic quantitative investment is about 350-400 billion RMB, including 654.38+020 billion RMB from Public Offering of Fund, and the rest are private quantitative funds, with the number reaching more than 300, accounting for 3% (more than 9,000 private managers), and the amount is about 200 billion RMB. The overall scale of China securities funds exceeds 16 trillion, of which 14 trillion is public offering and 2.4 trillion is private offering. Optimistically, the scale of quantitative fund management accounts for 1% ~ 2% of domestic securities funds, less than 1% of public securities funds and about 5% of private securities funds. Compared with foreign countries, more than 30% of the funds come from.
Nine, quantitative trading characteristics, editing, quantitative investment and traditional qualitative investment are essentially the same, both based on the theory of market inefficiency or weak efficiency. The difference between the two is that quantitative investment management is a "quantitative application of qualitative thinking", with more emphasis on data.
X. quantitative trading has the following characteristics:
1. 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.