I’ve seen the term ‘quant trading’ pop up a lot, but I’m still confused about what it really means.
Is it simply about using algorithms and data analysis for trades, or does it involve something deeper? How does it stack up against traditional technical analysis?
Quant trading uses algorithms to make trades based on data instead of gut feelings. It’s all about finding patterns and crunching numbers.
Quant trading = math does the work instead of you staring at charts.
You dump historical data into programs that find patterns and trade automatically. It’s all about using stats and probability to find market edges.
I tried some basic quant stuff a few years ago. Built simple momentum algos that bought breakouts and sold when momentum died. Worked great in trending markets but got destroyed when things got choppy.
Main difference from technical analysis? Scale and zero emotion. Technical traders still make the final call. Quant systems don’t - they just follow the math.
Big firms use crazy ML models, but regular traders can start with moving average crossovers or mean reversion. The tough part is getting clean data and knowing when your model breaks.
Robots trade for you while you sleep.
Quant trading is basically building a recipe for trades using data and math instead of gut feelings.
You set up rules based on market patterns, price moves, or economic data. Your system then executes trades automatically when those conditions hit.
The big win? No emotions. Your system follows the same logic every time without getting scared or greedy.