How to make your quantitative trading system have probabilistic advantages and positive return expectations?

Quantitative investment is based on writing a software system to monitor the real-time trading conditions of the sales market, and set some standards. Once the trading conditions of the sales market reach those conditions, some actual operations, such as buying and selling, are automatically implemented.

Obviously when a trend appears, there will be a certain probability advantage. For example, in a wave of uptrend, the probability advantage of going long must be more than 50%. At this time, try everythingThose who shorted at a high level and traded against the trend were all against the trend, and eventually they all failed out.

So if quantitative trading wants long-term and stable returns, you must follow the trend, trade with the market, and then establish your own trading rules and trading system.Hold positions when the trend appears, this trading system includes trading logic and capital management.

The trading logic ensures that you can continue to output advantages. Fund management allows you to always have money to trade. The risk is controllable. The long-term and consistent execution of the trading system can continue to make profits. It's that simple.

Human nature is difficult to overcome. When a trading system with stable positive returns is established, it can be handed over to the computer for execution, which can help better overcome consistent execution. So quantitativeTrading, programmatic trading can be stable and profitable.

If you do quantification, it is recommended to implement programmatic first, and do some hedging or hedging. You can earn a lot of money without advanced mathematical knowledge.

If you are a pure quantitative investor, because the future development trend will be more intelligent, you should lean towards more complex nonlinear data tools.