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Foreign exchange quantitative trading

{}Posted in2023/2/25 1:46:00 | 8Browse

With the development of computer technology, the competition between people forexcashrebate computers forexrebates also cashback forextensifying Although most domestic foreign exchange traders still use subjective, manual cashbackforexexness, but it is impossible to ignore that the mainstream international trend is to use computers instead of people to execute transactions, ForexrebateforExness trading will be one of the important directions of the future development of finance in the end, we are in from the historical data to find the laws, trying to find a more likely result and when it comes to summarizing the laws, nothing is better than computers. When it comes to summarizing laws, nothing is better than computers, the massive amount of historical data and efficient processing technology gives the basis for the computer to show its skills, quantitative trading is a computer data from the huge amount of data to filter out a variety of probable events that can bring excess returns, and then develop strategies and make decisions. Quantitative trading eliminates the artificial emotional factors, it is like the market is a sword of absolute rationality, without distractions and thus can play the maximum power [classic Forex rebate for Exness of quantitative trading] strategy, is the most important part of quantitative trading, is the key to the profitability of quantitative trading At present, the common quantitative trading strategies in the market are global macro strategy, alpha strategy, arbitrage strategy, CAT strategy, etc. Global macro strategy: global quantitative macro strategy can be divided into directional trading and relative value trading strategy: directional trading is to do direction, such as bullish on the U.S. economy to purchase the U.S. dollar or U.S. dollar index; relative value trading strategy is based on the spread to make decisions, such as the dollar is strong, the euro is weak, the European and American currency pairs are matched, etc. Macro model more consideration is the economic and fundamental data, but will also combine Market data macro strategy generally only operate financial products with good liquidity, long holding time, infrequent trading alpha strategy: alpha strategy is also known as market neutral strategy, according to CAPM theory, investment returns are divided into the overall market risk & beta; returns, and the financial products themselves bring & alpha; returns market neutral strategy is by avoiding market risk & beta; The specific operation is to short foreign exchange, stocks, futures derivatives while doing more foreign exchange, stocks, futures to hedge, as long as the product bought to beat the market rise and fall can be profitable arbitrage strategy: arbitrage strategy refers to when the price of two or more related species deviate from a reasonable range, by buying the undervalued sell the overvalued It is a strategy to find arbitrage opportunities through price rise and fall in the direction of arbitrage arbitrage strategy is relatively complex, there are statistical arbitrage, cash and futures arbitrage, ETF arbitrage, event arbitrage, etc., and its return mainly depends on the diversity and refinement of arbitrage strategy CTA strategy: CAT strategy that is CommodityTradingAdvisorStrategy, directly translated is the commodity trading advisor strategy CAT strategy can be divided into two main, namely, trend trading strategy and mean reversion strategy, where the trend trading strategy is more widely used trend trading strategy is to remove market noise in order to find the current market trend, and then establish a position, so as to gain from the market trend The strategy pays great attention to volatility, when the market directional fluctuations will have a greater return mean-reversion strategy is mainly cross-period, cross-species pair trading, according to the trend of the spread ratio to carry out reversal arbitrage We have introduced the above are several strategies commonly used in the market, in fact, the specific quantitative trading strategy to develop more complex and variable, sometimes may involve the integrated use of multiple strategies, in order to The life cycle of quantitative trading strategies] In the process of developing a specific quantitative trading strategy, it will generally go through a life cycle of developing a strategy → testing and correction → live tracking → live application → strategy failure to develop a strategy: investors first need to develop a basic strategy, the basis of this strategy may be their own investment experience, or may be the success of others. May also be the success of other peoples examples investors can select their own recognized technical indicators to build a logic, and supplement the corresponding factors to form a completed quantitative strategy and historical market backtesting, so you can get a simple strategy model test correction: investors need to use this strategy as the basis for parameter screening and optimization, observe how different parameters for the strategy will have an impact on the strategy, the strategys Sharpe ratio, maximum retracement rate, etc., and modify the strategy update investors need to constantly repeat the process of modification, testing, and finally get a viable new strategy live tracking: after the strategy is determined, investors do not need to rush to apply, should be in a period of future market to let time to test the authenticity and effectiveness of the strategy this link is the key to screening quality strategies, eliminating poor quality strategies live application The strategy can be applied after a period of time to confirm the effectiveness of the strategy, the investor can apply the strategy to trade, in the process of trading, but also to keep monitoring the effectiveness of the strategy strategy failure: the market is ever-changing, a strategy can not try everything, if the model has failed, the investor needs to react quickly to adjust the model, or to terminate the strategy [stand on the shoulders of giants On the money] foreign exchange quantitative trading is called by some people is standing on the shoulders of giants to make money, compared with active investment, quantitative trading in the process of making investment decisions, will be more objective and rational foreign exchange market is very variable, and people are emotional animals greed, fear, hesitation, recklessness ...... These are the weaknesses of human beings that cannot be avoided, which may lead to errors in decision-making, while quantitative investment in the model is determined and put into use, it is completely handed over to the computer to carry out, generally refused to think that intervention, can be reduced to a very low human emotional impact, to achieve rational and objective investment investors often use Chinese medicine and Western medicine to compare traditional investment and quantitative trading, traditional investment like Chinese medicine, relying on experience and comprehension, its The process can not be copied, difficult to say, but may be able to solve many difficult problems; while quantitative investment is like Western medicine, it has a fixed method and rigorous logic, even if the person who created the method is not in others can also develop, and with time continue to improve with quantitative to do foreign exchange trading, just like someone with a large number to take you flying, good luck when you can earn a lot of money but this does not mean that quantitative investment is Quantitative investment can also exist such as incomplete historical data leading to inaccurate models, homogeneous models to generate competitive trading phenomenon, or even network interruptions leading to trading problems and other risks too much reliance on the computer, but also how to lose may not know, how to choose, but also can only be left to the investors own judgment
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