Read all you need to know about Quant Trading and Crypto Quant Trading Software, what is it and how it works?
What is Quantitative Trading?
In simple terms, Quantitative trading involves the use of algorithms & computer program with complex mathematical models to identify $ capitalize on available trading openings. You can say it is a market strategy where research, mathematical & statistical models are utilised to identify market opportunities.
This strategy gets its name from the ‘Quantitative Analysis’ model on which it heavily relies. The software takes into account the quantitative analysis only, while it ignores the qualitative research. Quant trading is widely used for High Frequency Trading, Arbitrage and Automated Trading.
In the last few decades, trading has evolved and move from physical presence to electronic presence. With technological advancements, trading become more complex with new securities, crypto assets, multitudes of exchanges and loads of trading data. To compute such a big database and do data mining and research, you need Quant Trading Software.
How does Quant Trading work?
Quant Trading software uses only statistical methods and programming to determine the probability of stock or crypto movements. They are different from algorithmic traders as the latter utilise automated systems to analyse chart patterns as well execute orders on that behalf too. Quant traders do not necessarily execute trade orders.
Quant traders examine price and volume mostly and sometimes investor sentiments are also taken into account to develop statistical models. They help in identifying patterns and if a pattern has resulted in the upward move, more than 95% in the past then it predicts based on that pattern.
Quantitative Trading Strategies
Quant Traders utilise a number of strategies that are proven historically. The most used strategies are –
- Mean Reversion – This is based on the theory that prices and returns move in a trend and if prices or returns deviate then they would eventually revert to the original trend.
- Momentum Trading – It is based on identifying the trend, any significant market movement as it starts and ride it till the end.
- Statistical Arbitrage – This works on the basis that a group of similar stocks should perform similarly on the markets.
- Algorithmic Pattern – This strategy involves building a model that can identify institutional trades. When there is a big trade going on you can trade against them through this high-tech strategy.
- Behavioural Bias Recognition – This strategy exploits the psychological quirks of retail investors. you can identify the markets that are affected by behavioural bias and then trade against the behaviour.
- ETF Rule Trading – This strategy profits from the relationship between an exchange and the Exchange Traded Fund (ETF) that tracks it.
Crypto Quant Trading Software Provider
Crypto asset markets are very complex and highly volatile. Therefore, the investors for crypto require the expertise of Quant trading software more than traditional stocks investors. To help the investors with expert guidance software, PlatinX Technology offers services as Crypto Quant Trading Software Provider.
We have more than two decades of experience in Market Making, Liquidity Enhancement, Algo Trading and Quant Trading. Our expertise in the traditional markets have inspired us to offer customised crypto solutions to investors, crypto tokens and exchanges. The aim of PlatinX Technology is to leverage the benefits of global economic changes to the retail investors. This is only possible with the latest technology, expertise and knowledge.
- Our quant trading software provides you with the predictions developed by mathematicians and market analysts. Some of the benefits of PlatinX Quant Trading software are –
- Our software is developed through utilising different strategies where price/volume or historical trends etc.
- We develop the software on the working algorithm and mathematical model based on above mentioned strategies
- Our quality control is very efficient as we test each model on live or historical data to verify implementation. We customise models as per client’s requirements. Further changes are also incorporated when and where required.
- What makes PlatinX Technology as the best crypto quant trading software provider is Risk Management inclusion. We include risk management in the model with scenario analysis, stop-loss mechanism, capital allocation limit to make our software as protective as possible.
- There are features such as Live feed trade execution, 24*7 observation on profit making potential.
- We strive to work for our customers’ benefits therefore we continue our efforts on identifying new strategies.
Takeaway
Quantitative Trading is the future of trading in the Crypto and Digital Market. Decision making is easy with the mathematical model as it effectively removes the emotional quotient. The strategies are tried and tested throughout history. An investor can effectively make decisions by monitoring and analysing few crypto assets. However, after a short period of time, loads of information can overwhelm him. He can also make decisions on human emotions. Therefore, the use of PlatinX Technology Quant trading software helps eliminates those drawbacks. And help you reach your financial goals.