what is quantitative trading?

An excerpt from Baidu Encyclopedia explains that quantitative trading refers to replacing artificial subjective judgment with advanced mathematical models, and using computer technology to select a variety of "high probability" events that can bring excess returns from huge historical data to formulate strategies, which greatly reduces the impact of investors' emotional fluctuations and avoids making irrational investment decisions under the extremely enthusiastic or pessimistic market conditions.

I know every word, but when I connect them, I can't understand them. Do you have this feeling?

then digest it sentence by sentence.

replace artificial subjective judgment with advanced mathematical model.

I don't know if the model is advanced, but I think it's good to use the model to replace people's subjective judgment. Why is it called quantification? It means transforming abstract things into concrete descriptions, and in stock trading, it means expressing our feelings with concrete numbers. For example, I'm going to sell a stock. How can I sell it? I'm going to sell it after going up. It is a very abstract thing to go up and down. How high it is, how much it falls is called down. Then how to use specific figures to express it? I can write that the current price is 3% lower than the previous highest point, which means going up and down. Does it look clear?

for example, in this trend I hand-drawn, point A and point B are not considered as rising and falling, and point C is rising and falling.

of course, I wrote this 3% casually, or it can be 2%, 4% and other figures.

Use computer technology to select a variety of "high probability" events that can bring excess returns from huge historical data to make strategies.

This is easier to understand. Computers are fast, and we can find out what we want in a short time. It is definitely inefficient for us to look at it by ourselves. As we said before, using I to ask for wealth to select stocks is to use computers to select stocks from historical data. For example, if we find that MACD is in a strong area, there is a high probability that it will rise later, then we can formulate this strategy. This is only the simplest strategy, with only one condition. In practice, many indicators and conditions are combined to formulate a strategy.

It greatly reduces the influence of investors' emotional fluctuation, and avoids making irrational investment decisions when the market is extremely fanatical or pessimistic.

this is easy for everyone to understand, but it is hard to avoid.

The market during this period is the most realistic expression of this sentence. Years ago, Bao Tuan shares rose wildly, and various track theories said that there would never be a bubble in white wine. Everyone's emotions were driven up, and they chased hard and were extremely fanatical, throwing the risks out of the clouds. After the year, Baotuan shares began to fall, and as a result, they began to fall wildly. They used to be called Shenkun, and now they are called Caikun, which is extremely pessimistic. Things are still the same thing, but the mood is different. Human nature is like this, either fanaticism or pessimism, always jumping at two extremes. Quantitative trading means trading with machines instead of us. Machines have no emotions, and they will not be bothered by emotions if they operate completely according to the set rules.

Quantitative trading is very popular in Hong Kong stocks and US stocks, and a large number of institutions rely on computer technology to make investment decisions.

the scale of quantitative investment in mainland China is very small. 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 3% of funds come from quantitative or programmatic investment, and there is huge room for future growth in China.

Let's talk about today's market. It seems that the leeks have seen through my A routine. In a weak market, high prices must go low. Therefore, under the leadership of the skyrocketing Nasdaq, they opened higher, and then they all fled, perfectly low. Today, the group stock is very strong, but the technology that didn't fall much before has begun to perform. It's really hard to eat meat, and you can't escape being beaten.

the good news is that today's transaction volume is very low, and the land volume has been phased out. The so-called land volume has a land price, so it can't be said that it is the bottom here, at least it will rebound in the short term.

the current trend is still a downward trend, so those who want to participate can only make a short-term rebound, and may fall later.

if the position is heavy, you can take advantage of the rebound to lighten your position.

if you want to copy the bottom, you'd better wait.

I'm Guangtouwei.