Quant trading is a redundant term: all trading is quant trading. Whether your an arbitrageur or a technician, fund manager or high frequency trader, you are basing your trading on the quantitative analysis of the market, you just might not realize it.
A lot of times there seems to be an artificial divide between the realms of quant trading, technical analysis, and fundamental analysis. Ultimately all these disciplines are really just exercises in data science; every market participant attempts to use the quantitative tools at their disposal to best their competitors.
At times there can be quite a bit of derision from one side to the other; in many ways they resemble rival churches, complete with zealots, scriptures, and holy sacraments.
In practice, however, the term, quant, is usually reserved for a segment of the market which sits in reverence of the constructs of momentum and volatility. Their scriptures include the work of Jegadeesh and Titman; their gospels are numerous. Quants have even endured their own schisms: the forking of absolute and relative momentum, for example. This group elevates the power of mathematics to sublime levels, attempting to conjure the unobservable into reality: they create volatility and correlation based trading instruments and engage in the dark arts of dynamic hedging.
Traders and investors who rely on lines drawn on charts are implicitly using a quantitative model that assigns informational value to these lines. They call some lines support and some resistance, but in either case these lines are assumed to act as repelling barriers, constraining price movement. In this trading model, when prices cross these barriers it is considered significant: break-outs and break-downs can occur. Trend lines projected into the future serve as attractors, pulling prices consistently in a direction. This church's holy relics include chart patterns like the "cup and handle" or "bull flag" and their ranks are numerous. This can turn their chart patterns into self-fulfilling prophecies.
Algo traders are by defintion quants: their strategies have no logic without mathematics and their actions are driven solely from a stream of data. This church worships speed, data, and execution efficiency. Algorithms have splintered into three sects: high-, medium-, and low-frequency which are divided by their time frames. Like the Knights Templar, HFT's have become targets for sovereigns jealous of their accumulation of vast treasure hoards and military power (the race to zero latency is often referred to as an "arms race").
There are many reasons to specialize. As our technology and concepts become more advanced they become harder to wield with skill. Segmenting ourselves into one group or another reduces the complexity of our existence and makes it possible to become a true expert on a subject.
There are dangers to such rigid segmentation, however. I have found that time and again that I produce my best ideas when I've been thinking about a broad range of topics. This cross-pollination of thought is necessary to transcend the boundaries imposed by ideological silos.
The good thing about finance is that something that sounds heretical today can become ubiquitous in the future, especially if it works.
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ps my voting strategy didn't really attract as many people as i thought so i'm not doing that shit no more
Education and training: It is usually difficult for new college graduates to score a job as a quant trader. A more typical career path is starting out as a data research analyst and becoming a quant after a few years. Education like a masters in financial engineering, a diploma in quantitative financial modeling or electives in quantitative streams during the regular MBA may give candidates a head start. These courses cover the theoretical concepts and practical introduction to tools required for quant trading.
yeah, its definitely a competitive field... my own courses were in math and econ, which definitely prepared me somewhat, but what would have been really good was comp sci...
nowadays every junior trader can code, at least at some basic level for data manipulation and such. most of what a jr trader will do anyways is produce reports / analytics and watch the strategies trade
Very interesting. I guess I can call myself a Quant Trader!
Upvoted you & resteeming it! Thanks.
most def thanks for the support!
BTW: on a related note, i've started up a small market making bot in the STEEM/SBD market, come trade with me!
i want to increase liquidity within steem's very own decentralized exchange, right now the book looks like swiss cheese
very cool!!
big opportunities if everyone starts using the DEX, its one of steems most underrated features IMHO
Quant analysis as the main inputs to mathematical models.
Quant trading techniques include high-frequency trading,
algorithmic trading and statistical arbitrage...Thanks
@marketstack for your valuable content....
stat arb is my bread and butter
Ha ha ha........
Nice @marketstack
Very good post @marketstack
I think crypto is the future.
word
Trade and price charts become scriptural philosophy. However everyone pursue profit, the only method for pricing today can only be seen through graphs. Is there any other way, I think need another method to predict the market price. Especially trading the crypto currency.
the scripture reference i think is very apt, given how many ppl grow to trust the same models w a reverence normally reserved for the spiritual setting!
Poznovatelny post. Many interesting things are written. Thank you.
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://mktstk.com/2015/10/10/all-trading-is-quant-trading/
that's great information!
yeah, you explain it in an amazing way.
the lines showing on the chart are the main part of trading.
and it gives us the idea how the trading will go, up word or down word.
Good post @marketstakc
Very good post. Many interesting things are written. Thank you.
You got a 6.36% upvote from @postpromoter courtesy of @marketstack!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!
whats STU?
This is the combination of SBD/SP each upvote creates.
http://steem.supply/rewards
is this is ur creation then?
could you take a sec to explain this STU in more detail, i'm a math guy, so we can talk math lol
please don't be offended if that external link explains everything but i don't know that domain yet so i'd prefer reading / talking on chain if possible
No, it is not my creation. The link explains the concept and that is where I learned it from.
got it, concieved by immaculate conception then? you are its what then, shephard?
