Parachainglobal：Characteristics of the three categories of quantitative transactions

Parachainglobal：Characteristics of the three categories of quantitative transactions

1. Classification

 

At present, quantitative trading is generally divided into trend trading, market-neutral trading and high-frequency trading.

 

2. Three classification characteristics

 

Trendy trading

 

Suitable for some masters of subjective trading, using technical indicators as auxiliary tools in the market, but if only various technical indicators or combinations of indicators are used as core algorithms to build models, the probability of long-term profitability is low.

 

Market neutrality

 

In any market environment, the risk is lower, the yield is more stable, and the capital capacity is larger. It is suitable for some quantitative traders to find alpha factors in the market to earn additional returns, such as hedging strategies for stocks and stock index futures.

 

High-frequency trading

 

Buy and sell frequently in a very short period of time, and complete many large transactions. Such trading methods are very demanding for hardware systems and market environment, so only professional institutions in mature markets will be applied.

Parachainglobal：https://web.parachainglobal.com/