I always hear people say trading is worthless unless you are a quant trader. What exactly does that mean? Is an automated technical analysis strategy considered quant trading?
What is Quant Trading?
- Thread starter TheNotSoGreatGatsby
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Quant Trading is essentially a rebranding of technical analysis.
Technical analysis was partially, if not mostly developed, by engineers and other quant types. Unfortunately, the Wall Street establishment which leaned heavily on the sales-research synergies to push product debunked technical analysis and it never gained complete credibility with the institutions.
In this era of cost cutting in brokerage/investment banks staff and advances is computational technology, quant research/trading has gained ascendance. The maths' still have the same weaknesses and limitations.
Imho.
Technical analysis was partially, if not mostly developed, by engineers and other quant types. Unfortunately, the Wall Street establishment which leaned heavily on the sales-research synergies to push product debunked technical analysis and it never gained complete credibility with the institutions.
In this era of cost cutting in brokerage/investment banks staff and advances is computational technology, quant research/trading has gained ascendance. The maths' still have the same weaknesses and limitations.
Imho.
wrong-- quant trading has nothing to do with TA
From Investopedia
DEFINITION of 'Quantitative Trading'
Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify trading opportunities. Price and volume are two of the more common data inputs used in quantitative analysis as the main inputs to mathematical models. As quantitative trading is generally used by financial institutions and hedge funds, the transactions are usually large in size and may involve the purchase and sale of hundreds of thousands of shares and other securities. However, quantitative trading is also commonly used by individual investors.
DEFINITION of 'Quantitative Trading'
Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify trading opportunities. Price and volume are two of the more common data inputs used in quantitative analysis as the main inputs to mathematical models. As quantitative trading is generally used by financial institutions and hedge funds, the transactions are usually large in size and may involve the purchase and sale of hundreds of thousands of shares and other securities. However, quantitative trading is also commonly used by individual investors.
PhD in applied statistics / Math / Programming / ability to model using matrices in Matlab
That brings new meaning to "I know just enough to be dangerous"
From Investopedia
DEFINITION of 'Quantitative Trading'
Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify trading opportunities. Price and volume are two of the more common data inputs used in quantitative analysis as the main inputs to mathematical models. As quantitative trading is generally used by financial institutions and hedge funds, the transactions are usually large in size and may involve the purchase and sale of hundreds of thousands of shares and other securities. However, quantitative trading is also commonly used by individual investors.
Not exactly a respected source--- heck, its worse than wikipedia.
And your replies to the OP's inquiry are so much more insightful.
Fancy name to try to make the usage of stats, programming and math in relation to trading, sound cool.
Yeah I do believe they wereAnd your replies to the OP's inquiry are so much more insightful.
Man the stuff you post blows my mind
Just betweex you & I, you ARE a perpetual/incorrigible troll, are you not? (guess we'll never know)