What is Quant Trading?

Seems to me that modeling a hypothesis with sound market merit puts you squarely into a competitve arena with experts in maths. Wouldnt discrepencies be found and expoited to nothing rather quickly by the first and brightest to arrive.
How could retail find anything in daily correlations of exhange traded funds that is not
just random? And yes , for fun, i have about many thousands of time series of cross products
of ETF spreads of which i am looking lead/lag relationships. Where they exist it seems to be left to determine cause, toss out as random or simply use it if not understood.
At best i expext find some relatiomships I was not aware of that work some of the time.
You cant google this or buy the manual on Amazon though i wish you could.
 
volpunter said:
Ouch that hurts. Perfectly and positively incorrect information and assumptions.

Not a single quant developed or came up with technical analysis nor technical analysis indicators. If you know even one you would realize that those indicator authors are most all laymen who have no quantitative financial background at all.

Stop hating others merely on the basis that they are above you in he food chain. Geez
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A lot of the technical indicators are based on digital signal analysis and statistics. Read up on the background of the prolific technical indicator authors. don't ask me who, I read about these guys 25 years ago.Surely, you have read how physicists Came to prominence on Wall Street. TA preceded that. But didn't get traction. The math has always been around.

I am not a technician. Just aware of what some of this stuff is built from. You guys are getting rabid as if Tom Cruise just came out with a Quant movie.
 
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Quant just means that the primary portfolio management decision maker is something that can be coded on a turing machine as opposed to a human.
 
A lot of words without any meaning. How about you go home and tomorrow you come back and share with us the wonderful world of Technical Analysis Inventors? Can't wait

xandman said:
A lot of the technical indicators are based on digital signal analysis and statistics. Read up on the background of the prolific technical indicator authors. don't ask me who, I read about these guys 25 years ago.Surely, you have read how physicists Came to prominence on Wall Street. TA preceded that. But didn't get traction. The math has always been around.

I am not a technician. Just aware of what some of this stuff is built from. You guys are getting rabid as if Tom Cruise just came out with a Quant movie.
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It's just like comparing a cheap basic car (TA) to a luxury SUV (Quants), the latter is more complicated and better built but both are 4 wheeled vehicles designed to do exactly the same thing, more or less.
 
I've yet to see a quant who does as good a job at finding trends as any technical trader. Indeed all quant strategies are market-neutral strategies because they all so suck at directional trading. If you find a quant who can trade directionally, you can bet your ass it's because he's using some TA, probably secretly.
 
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If you mean wanting to generate profits is the common theme then I agree. But you are basically saying playing lotto or gambling and an ordinary income generating job are essentially the same. Not sure I can agree with that just because they both may aim at generating a return. Sure, you can put into either one mediocre people or extremely smart people but the odds are most always stacked against the one on gambling/lottery side. How is applying finance with a scientific and proven approach the same than applying some esoteric lines and scribbles on charts and believing that the market bends to support and resistance rather than new incoming fundamental information?

d08 said:
It's just like comparing a cheap basic car (TA) to a luxury SUV (Quants), the latter is more complicated and better built but both are 4 wheeled vehicles designed to do exactly the same thing, more or less.
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