Quantitative Trading

Quantitative Trading also known as Quant Trading is the trading of all financial assets through a computer. without human beings involved. by using quantitative data analysis which uses numerical data and mathematical calculations to find investment opportunities.

Quantitative Trading requires a computer’s enormous and fast data processing potential. So this kind of trading In the past, this was only used by large institutional investors or funds. But nowadays, with the advancement of technology and the rapid sharing of knowledge on the internet. This allows retail investors to develop a computer system for quantitative trading more widely.

The key fundamental elements of quantitative analysis are price and quantity. Most of them involve technical analysis and mathematical numbers. But it also includes other investment techniques such as algorithmic trading, high-frequency trading (HFT), Statistical, and also includes the use of fundamental data such as economic data, financial statements.

Advantages of Quantitative Trading:

Quant trading eliminates the problem of trading emotions that exist in all human beings, i.e. greed and fear, but with computerized trading there is no such problem.

Disadvantages of Quantitative Trading:

The market is volatile and uncertain. And the market will constantly change conditions. Therefore, if the Quant Trading system that was created can not be adjusted according to the changing market conditions in a timely manner It will eventually cause huge losses.