Quantitative strategy of digital currency
Quantification is based on mathematical statistics and mathematical modeling, using computer technology, from the massive historical and current data, to explore the trading mode that can bring large probability of excess return, to avoid the negative impact of irrational decision-making caused by investor sentiment fluctuations in the artificial trading process. A qualified quantitative trading model must be based on the trend judgment or arbitrage principle with clear economic meaning, and further systematized and programmed abstraction, presenting a set of complete logic executable trading instruction flow and logic control scheme
what is strategy
strategy, literally refers to the set of solutions that can achieve the goal; In short, it is a series of preset behavior patterns, which will be enabled under different trigger conditions
in securities trading, strategy refers to taking corresponding trading actions when pre-set events or signals occur
what is quantitative strategy
the so-called quantification is to digitize the events or signals in the behavior pattern and analyze them through a set of fixed logic, rather than relying on people's feelings or intuition to judge and make decisions
traditional traders usually execute some specific transactions after seeing some graphical technical form. If they can describe the graphical form with a series of data that can be recognized by a computer program, the program will automatically judge and decide whether to trade, and automatically carry out position management and risk control actions, which will become a quantitative strategy
generally speaking, the so-called quantitative strategy means that the whole transaction process is completely realized as a computer program, and the data receiving, processing and transaction execution are automatically completed by the computer program. In order to develop such a quantitative strategy, it is necessary to collect a certain amount of data in advance and establish a set of decision-making model based on digital processing; After studying the strategy, we should implement it and let it run
is it reliable to invest with quantitative strategy
let's take a look at the data of a quantitative platform:
according to the back test data of Yikuan quantitative platform based on the one week strategy of digital currency running in December 2017 (December 11-17):
"ready to go" entered the market first, however, the premature stop profit led to repeated opening and stop loss, which was not suitable for that period of market, Fortunately, in the last paragraph, we can recover a little
the judgment and decision-making process of any indivial investor will be affected by various psychological factors such as cognition, emotion and will to varying degrees. Quantitative investment relies on computer to allocate portfolio, which overcomes the weakness of human nature and makes investment decision more scientific and rational