What is Quantitative Trading? A Simple Guide for Beginners
🚀 What is Quantitative Trading? Quantitative trading uses mathematics, statistics, and programming to make trading decisions. Instead of relying on gut feelings or news tips, quant traders build algorithms (trading bots) that follow logic based on data. It’s like teaching a robot how to trade for you. 🧠Why Use Quant Trading? Because it’s: ✅ Fast — Computers don’t sleep. ✅ Objective — No emotions, just logic. ✅ Backtestable — You can test your strategy on old data. ✅ Scalable — Trade 1 stock or 1000 at the same time. 🧮 How Does it Work? Collect Data Get historical prices, volume, indicators, etc. Analyze the Data Use math or machine learning to find patterns. Build a Strategy For example: “Buy when the 50-day average crosses the 200-day average.” Backtest Run your strategy on past data to see how it would perform. Execute Trades Automatically Use APIs to place trades without manual clicking. 🧰 What Tools Do Quants Use? Python — Most popula...