In the process of quantitative trading, retail investors can do this

Compared with manual trading, quantitative trading has the following advantages: Quantitative trading can scan individual stocks and movements in the entire market, capture various signals and conduct timely analysis and actions, which is more comprehensive than manual trading.will be wider.Because it is a computer-implemented strategy, it will automatically trade when the conditions are triggered, so it will not be affected by greed, fear, fluke and other psychological influences in human nature, and will strictly follow the discipline to execute the transaction.Because various trading conditions are set in advance, computer ordering will naturally be much faster than human operations, and can buy or sell chips earlier.

So in the process of quantitative trading, retail investors can do this:

Retail investors conduct multi-factor stock selection based on the historical data of individual stocks, for example, using price-earnings ratio, price-to-book ratio, price-to-sales ratio, etc. as stock selection criteria, and select some stocks that are undervalued or in a reasonable area.

Retail investors trade with the trend, which means buying in an uptrend and selling in a downtrend.

For reasonable position management, funnel position management method, rectangular position management method, pyramid position management method, etc. can be adopted to better deal with the risks of individual stocks in the later stage.

Based on the historical trend of individual stocks, retail investors look for the support and pressure levels of individual stocks, and use them as stop-loss and take-profit points, that is, sell in time when they are at the pressure position and gain profits; when they fall below the support level,And when the stock loses, sell the stock in time to avoid greater losses.

Model establishment in quantitative stock trading is very complicated, with a lot of parameters, a large amount of data, and a very complicated data analysis process.

It is worth mentioning that public investors have some concerns when contacting quantitative investment funds. On the one hand, it is the public's hesitation about the reliability of emerging investment methods and models in the immature environment of the A-share market.

On the other hand, there are limited effective quantitative models in the current domestic market. In order to prevent duplication, institutions often cover up their investment strategies and theoretical basis for construction and cannot be transparent, which increases investors' concerns about quantitative models.

Quantitative trading strategies cover almost the whole process of investment, including quantitative stock selection, quantitative timing, stock index futures arbitrage, commodity futures arbitrage, statistical arbitrage, algorithmic trading, asset allocation, risk control, etc..