With the advancement of technology, there has been a sharp rise in the trading market as well. Now the focus has shifted from manual work to computerized world. Computers have revolutionized the world and also the working conditions. In order to get an edge in today's fast changing world traders have utilized the power of superfast computers.
Blend of past data and new algorithms have resulted in the development of quantitative trading strategies. With the introduction of algorithmic trading and quantitative trading dependency has shifted from manual working to computerized working. By quantitative trading we mean trading approaches based on the quantitative analysis which is a result of the mathematical computations.
The two most important data inputs used in it are price and voliume.Quantitative trading is usually used in financial institutions and closed-end funds. Also the transactions are large in volume and may compromise of buying and selling of thousands or hundreds of shares and other securities. It is to be noted that quantitative trading is used by individual investors also. It includes an array of techniques which include the following-high frequency trading, algorithmic trading, and statistical trading. These techniques when implemented contribute to the market volatility because of their rapid nature.
There are two types of quantitative trading strategies-mean reversion and momentum trading. In mean reversion it means that the stock price will eventually return to its historic mean. Trading is then determined by how many standard deviations the price is above or below the midpoint. In momentum trading quantitative analysis is performed on market data to identify rising rates of returns. Each new data is then compared with the current trend to test whether it gels with it or not. High frequency trading is an example of quantitative trading. It has following advantages-
€ High & Quick Returns
€ Passive
€ Multiple Strategies
€ Putting faith in industry
Now a day's technical traders in order to match up with the fast paced trading world they are enrolling themselves in executive programme in algorithmic trading to get a better insight of the trading techniques. These executive programmes are great option for the fresher's as well as experienced to polish their trading skills. Moreover let's discuss about commodity markets, it is a known fact that commodity trading has been the greatest money grosser. A quantitative approach is followed to commodity markets. Massive wealth generation is possible if commodity trading and investment is done in the right way. There are three different basic ways of analyzing fx market.
A quantitative analysis should be done or in short a quantitative approach to fx markets should be followed whenever trading a currency pair. Analysis involves assessing a currency pair's movement. In simple words it means checking whether a currency is under priced or overpriced.
QuanInsti Quantitative Learning Pvt. Ltd is a Mumbai based training institute specialized in providing training courses in algorithmic trading. The Executive Programme in Algorithmic Trading is a unique course that covers the following topics-
€ Statistics & Econometrics
€ Quantitative Trading
€ Financial Computing & Technology