What is quantitative trading?
Quantitative trading, also known as automated trading, refers to the use of robots to replace human-made subjective judgments, refer to massive historical data to formulate trading strategies, and avoid irrational investment decisions made under emotional fluctuations. In short, robots are used to operate virtual currency transactions.
Quantitative trading is the use of mathematical analysis combined with computer technology to find valuation depressions, and to comprehensively and systematically search for business opportunities due to mispricing and misvaluation.
What are the advantages of using quantitative trading in virtual currencies?
Quantitative trading can help humans save a lot of time and energy without having to pay attention to the virtual currency market at any time.
Quantitative trading can overcome human weaknesses and help humans make more rational virtual currency trading strategies.
Two main ways to quantify virtual currency transactions:
1, Risk-free arbitrage
It mainly refers to “moving bricks”, that is, using the spread of different virtual currency exchanges to carry out arbitrage, as well as virtual currency futures hedge arbitrage.
2, Trend arbitrage
This requires the analysis of big data to determine the market and the virtual currency buying and selling operations, but the history can only be similar and cannot be completely equivalent, so the predicted trend cannot be completely correct.
Quantitative trading of virtual currencies is to write the investment strategies developed by humans into the computer in the form of programs and let robots automatically operate according to human instructions, which not only saves time and energy, but also avoids wrong operations caused by human weaknesses.
Quantitative trading of virtual currency is divided into risk-free arbitrage and trend arbitrage. Trend arbitrage is the main game of the virtual currency quantification team. There is a certain degree of risk. Don’t trust the publicity of the quantification team. There is no stable profitable transaction.