Hello everyone, today I would like to talk to you about a very hot topic: "quantitative trading". Some of you may have heard this term before, but for most people, the term is probably quite new. So what exactly is this mysterious "quantitative trading"? Why would anyone compare it to a poisonous snake and beast?
First of all, we need to understand that quantitative trading is actually a way to use computer programs to complete buying and selling automatically. This process is a bit like using electronic payment when you buy groceries, except that the object of this transaction is financial products such as stocks, bonds, futures, and options. By combining historical data with sophisticated statistical analysis, it can automatically buy and sell these financial products, helping you earn high yields and reduce risk. This sounds a bit like the kind of "auto-monster" function we use when we play games, as long as the conditions are set, you can automatically upgrade the monster fighting.
So why do some people compare quantitative trading to a poisonous snake and beast? I think there are several main reasons:
Behind the high returns of quantitative trading is actually high risk. Just like when we play a game, sometimes we may take more risks to play in order to get a high score. The same is true for quantitative trading, although it can capture subtle changes in the market, but it is also very risky, mainly from market fluctuations and the cost of trading. The more volatile the market, the more risky quantitative trading becomes.
Many people have misconceptions about quantitative trading, thinking that it is a kind of "machine replacing people", which may make the financial market unfair and unstable. But in fact, this is not the case, quantitative trading is just a tool, and its buying and selling decisions are automatically generated by the program, and will not replace our thinking and judgment.
The process and results of quantitative trading are often not so transparent, which can feel a bit mysterious and distrustful. But in fact, with the development of technology, the transparency of quantitative trading is also increasing, and we can learn about its trading process and results through various channels.
The impact of the financial crisis also contributed to this. Quantitative trading played a big role in the 2008 financial crisis, but because it used a lot of leverage, it caused wild volatility in the financial markets. In the aftermath of the financial crisis, trust in quantitative trading has decreased, and it is believed to be the culprit of the financial crisis. But in fact, the root cause of the financial crisis is not quantitative trading, but the high risk and low transparency of financial institutions.
Although quantitative trading has high returns, it also has high risks, and we need to be cautious. It is not a poisonous snake, but a very important financial instrument. We should have a correct understanding of quantitative trading, strengthen its supervision, control risks, and make the financial market develop more healthily.
Well, that's all for today's sharing, I hope my explanation can help you better understand the concept of "quantitative trading". If you have any questions, or have any ideas, please feel free to leave a message below and we will discuss together.
#量化交易是否应该被取消#