What is quantitative trading?

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Charles Groth
Answered 1 year, 7 months ago
<p>Quantitative trading involves using quantitative methods and algorithms to execute strategies. This has a broad set of uses; a typical example might be a trader using a mathematical model to take a position on what an asset “should” be worth before carrying out a trade. Models like these are designed to leverage information the market may be missing, such as what happens to a company or an industry when interest rates move in a particular direction. However, this is only one form of quantitative trading and is most often performed by hedge funds or investment banks.</p>
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Joel Schmidt
Answered 1 year, 12 months ago
<p id="isPasted">Quantitative: “relating to, measuring, or measuring by the quantity of something rather than its quality.”</p><p>Traders employing a quantitative approach might look at financial time series data (e.g. Eurusd) and look for statistical relationships in what might cause some effect or change.</p><p>To give an example; one might hypothesize about how many pips can be expected at 1 pm on eurusd by looking at all the previous 1 pm bars.</p><p>Quantitative trading - like everything in life - is only complicated when you don’t know how or what you’re looking for. You need to be able to hypothesize about data …</p>
David Hunter
Answered 1 year, 10 months ago
<p id="isPasted">Quantitative trading, also known as algorithmic trading or quant trading, is a type of trading that uses mathematical and statistical models to make trading decisions. Quantitative traders use computers to analyze large amounts of data and identify trading opportunities.</p><p>Quantitative trading is used in a variety of markets, including the stock market, forex market, and bond market. It can be used to trade a variety of assets, including stocks, currencies, and bonds.</p><p>Quantitative trading is a complex and sophisticated discipline. It requires a strong understanding of mathematics, statistics, and computer programming. Quantitative traders also need to have a deep understanding …</p>