Quant Trading: Identifying a Strategy
Transcript of Quant Trading: Identifying a Strategy
![Page 1: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/1.jpg)
Quantitative Trading:Identifying a StrategyBy Nir Ronen
![Page 2: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/2.jpg)
For years, trading was a manualaffair. Individual traders wouldtrack markets, wait for the besttime to act, then make a call to the
floor.
![Page 3: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/3.jpg)
In the 1990's e-trading began toemerge, and by the 2000's
automated platforms had comeinto their own.
![Page 4: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/4.jpg)
Successful quant trading relies ona multi-step approach.
First up? Finding a reliablestrategy.
![Page 5: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/5.jpg)
Whyis strategy important?
Imagine you're managing your own portfolio
and using a mobile app to place orders and
trade throughout the day. Chances are you're
taking time to look up related news before
making you move.
Quantitative Trading
![Page 6: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/6.jpg)
Going in Blind
When coming in from aquantitative angle, you'reconcerned with finding analgorithm that can do that for you.So, you pour over data to help youidentify an algorithm that canpredict-- and respond to--
fluctuations in price.
![Page 7: Quant Trading: Identifying a Strategy](https://reader031.fdocuments.us/reader031/viewer/2022030305/5874815b1a28ab4a758b9f81/html5/thumbnails/7.jpg)
Why botherwith analgorithm?
Let's revisit the mobile app scenario from
earlier. At any given point, you may be tracking
two or three securities at a time. But by having
a program make those decisions. With an
algorithm? You can trade thousands. By not
focusing on individual details, your resources
are free to use on perfecting a platform that will
make consistently good decisions.
Quantitative Trading