From the onset of EIF Business School, Professor Linton Quadros endeavored to create a "Lazy Human Investment System." He recognized early on the profound significance of quantitative trading for all investment markets and types, such as securities, various futures, cryptocurrency, and foreign exchange.
Compared to subjective trading, quantitative trading aids investors/traders in numerous ways:
1.Emotional Trading: Quantitative trading helps eliminate the impact of emotions on trading decisions, leading to more objective and rational transactions.
2.Trade Execution: This method can automatically execute strategies and swiftly respond to market shifts, reducing human error and delays.
3.Big Data Analysis: It leverages large-scale data and analytical tools to uncover and analyze market patterns and trends, identifying potential trading opportunities.
4.Risk Control: Quantitative trading employs strict risk management and stop-loss strategies to shield portfolios from significant losses.
5.Statistical Advantage: Investors can utilize statistical principles and mathematical models to enhance portfolio returns and risk management capabilities.
6.Market Arbitrage: By rapidly reacting to market price differences and potential conflicts of interest, it enables market arbitrage for profit.
7.Optimizing Trading Costs: Algorithmic and strategic execution in quantitative trading can lower trading costs, including low-latency and high-frequency trading.
8.Diversified Investments: It facilitates the easy implementation of diverse investment strategies across stocks, futures, forex, and other asset classes.
Overall, quantitative trading aids investors in improving efficiency and returns in decision-making, execution, and risk management.