Quantitative trading has evolved from manual to automated trading platforms since the 1990s. Successful quant trading involves finding reliable algorithms to predict and respond to market fluctuations, allowing traders to manage multiple securities simultaneously. This efficiency frees up resources for optimizing trading strategies instead of focusing on individual trades.

1. QuantitativeTrading:
IdentifyingaStrategy
ByNirRonen

2. Foryears,tradingwasamanual
affair.Individualtraderswould
trackmarkets,waitforthebest
timetoact,thenmakeacalltothe
floor.

3. Inthe1990'se-tradingbeganto
emerge,andbythe2000's
automatedplatformshadcome
intotheirown.

4. Successfulquanttradingrelieson
amulti-stepapproach.
Firstup?Findingareliable
strategy.

5. Why
isstrategy
important?
Imagine you're managing your own portfolio
and using a mobile app to place orders and
trade throughout the day. Chances are you're
taking time to look up related news before
making you move.
QuantitativeTrading

6. GoinginBlind
When coming in from a
quantitative angle, you're
concerned with finding an
algorithm that can do that for you.
So, you pour over data to help you
identify an algorithm that can
predict-- and respond to--
fluctuations in price.

7. Whybother
withan
algorithm?
Let's revisit the mobile app scenario from
earlier. At any given point, you may be tracking
two or three securities at a time. But by having
a program make those decisions. With an
algorithm? You can trade thousands. By not
focusing on individual details, your resources
are free to use on perfecting a platform that will
make consistently good decisions.
QuantitativeTrading