✴️The Nine Best Trading Systems for Quantitative Trading!✴️
Those who don't understand are blessed! I would call it the ceiling of trading systems!
💹What kind of trading systems are suitable for quantification?
1⃣ Clear and Quantifiable Rules: The strategy's buying, selling, and risk management have clear logic and are easy to convert into code.
2⃣ Data-Driven: Relies on market data (such as price and trading volume) or other quantifiable indicators (such as fundamental data and derived data).
3⃣ Backtestable: Able to validate the strategy's effectiveness using historical data.
4⃣ Automated Execution: Trade execution can be systematized without relying too much on subjective judgment.
✔️How to choose the right system?
Use trend-following and momentum strategies when trends are clear; use mean reversion and grid trading in oscillating markets; use breakout and reversal strategies during high volatility; low-risk arbitrage investors are suitable for using arbitrage strategies.
Is there anything you still don't understand after reading this?