What is quantitative investment?

The so-called quantitative investment is the standardized trading method of investment links, which mainly includes three links: stock selection, buying and selling. The real quantitative investment is a completely automated transaction, which does not require manual participation. Investors only need to monitor whether the program runs normally, whether the parameter settings are reasonable, and whether the index selection is within the set target range.

The formation process of quantitative investment is very simple, that is, an idea, which becomes a reality through programming language. For example, low P/E ratio investment, buy when P/E ratio is less than 5 times, and sell when it is higher than 10 times. The specific steps are as follows:

First, determine your investment philosophy, whether it is value investment or trend investment. If it is a value investment, what indicators should be used to determine the value? Similarly, trend investment should also find indicators to judge the trend, whether it is technical indicators or financial indicators, it should be clear and quantifiable.

Secondly, there must be a matching trading strategy, which is a process refined according to the investment concept, including the timing of buying and selling, the number of buying and selling, and the arrangement of positions. The main quantitative strategies in the market include: multi-factor stock selection strategy, relative value hedging strategy, grid trading strategy, event-driven strategy, index enhancement strategy, intraday trading strategy, industry rotation strategy, trend investment strategy and multiple strategies.

After determining the index and quantity, quantitative modeling is carried out to turn the above process into machine language, that is, programming. For example, Trend Investment determines that KDJ daily gold forks buy dead forks and sell them, and the quantity is 10% of the total assets, which can be written into the program through these conditions.

Finally, the program is verified and modified. Quantitative trading software includes Wenhua Finance, Snail Stock Quantitative Analysis Software and Founder Securities Quantitative Trading Platform.

Therefore, the threshold of quantitative trading is also very high, because few investors have the ability to program, not to mention its core is not programming, but understanding of investment, how to choose relevant indicators, combine them into new ones, and polish them into a sword without a front.

The advantages of quantitative trading are self-evident: automatic programming, free from emotional interference; The disadvantage is also obvious: it can't be flexible, so it can be used comprehensively in real investment. In the process of stock selection, it can use half of the system, and in the process of trading, it can be completely handed over to the machine. Investors can really get rid of the disk and concentrate on their own investment work: selection, research and thinking.

For ordinary investors, you don't know how to program. You can choose stocks through the system to determine standards, and then you only need to determine the clear indicators of buying and selling. Finally, you can track the market after the market, entrust the transaction before the market, and then place an order when it arrives.