Tuesday, October 15, 2013

First post must be introduction of Quantitative Trading

It is automatic trading by computer program. It uses computer for all the work from data collection, analysis and trading.

Quantitative Trading can be divided in to 3 parts.
  1. Collecting Data
  2. Pattern Detection/analysis and Back Test strategy with historical data.
    • With the back test framework, you can know your strategy before really fight your real money with the market.
  3. Automated trading by computer program.
    • After having best strategy in above with best % of return, you start automated it with writing code.

You can retire and travel around the world after you past & pass part 3 above.

The reason why quantitative is because it feel stupid for people who think they can earn easy money on stock market and other day wake up you feel it not working anymore. The answer was from James Simons in the youtube.
James Harris "Jim" Simons (born 1938) is an American hedge fund manager, mathematician, and philanthropist. In 1982, Simons founded Renaissance Technologies, a private hedge fund investment company based in New York with over $15 billion under management. Simons retired at the end of 2009, as CEO, of what is one of the world's most successful hedge fund companies. Simons' net worth is estimated to be $10.6 billion.

Let's start to use computer to trade for you !!!!



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