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What does high-frequency quantitative trading mean?

Recently, the changes in market style have accelerated, and the volume of energy has also been enlarged. Even many proper nouns in the stock market have dazzled many friends. Before quantitative trading is understood, they have reached high frequency. trade. Today we will briefly talk about what high-frequency quantitative trading means.

What does high-frequency quantitative trading mean?

1 High-frequency trading refers to a high-speed, high-frequency trading method, which is implemented through a preset computer algorithm and has the characteristics of low overnight positions, high order cancellation frequency, and high turnover rate. .

2 Quantitative trading uses advanced mathematical models to replace human subjective judgment, and uses computer technology to select a variety of "high probability" events that can bring excess returns from huge historical data to formulate strategies. This can avoid making irrational investment decisions in situations of extreme market enthusiasm or pessimism.

3 High-frequency quantitative trading, derived from programmed trading and market maker mechanisms, refers to computerized trading that seeks to profit from extremely short-term market changes that people cannot take advantage of, through extremely high-speed The supercomputer algorithm analyzes the price change patterns in high-frequency trading data, implements high-speed, high-frequency order trading methods, and uses these price change patterns to make profits. High-frequency trading also has the characteristics of low overnight position holdings, high frequency of order cancellations, high frequency of opening and closing positions, and high turnover rate.

High-frequency quantitative strategies are adapted to markets with active retail transactions. They can capture various preset opportunities in a timely manner. They can operate in multiple threads, trade in multiple stocks, and run multiple different strategies at the same time. , no need to manually search for various opportunities.

In general, high-frequency quantitative trading requires very high equipment, and ordinary investors generally have little exposure to it.