10 Things the Public Need to Know About Quantitative Trading

10 THINGS THE PUBLIC NEED TO KNOW ABOUT Quantitative Trading QUANTITATIVE TRADING, unlike QUALITATIVE TRADING that is based on financial experts' insight and analysis, uses computer software programs and spreadsheets to track patterns or trends in trading behaviour. QUANTITATIVE QUÁLITATIVE A QUANTITATIVE TRADING STYLE is designed to reduce the cost of buying and selling many securities in various transactions by streamlining trades. Through QUANTITATIVE TRADING, investment opportunities in underpriced securities, including STOCKS and BONDS, are uncovered; it also identifies overpriced assets. BANK Quantitative trading is mostly used by institutional investors such as hedge fund traders and financial institutions. Those who want to be quantitative traders take degree/s in FINANCIAL ENGINEERING FINANCIAL RISK MANAGEMENT COMPUTATIONAL FINANCE and/or MATHEMATICAL FINANCE According to WALL STREET, the TOP 10 QUANT SCHOOLS are: Carnegie Mellon University Carnegie Mellon University Cornell University New York University Columbia University NEASIT Rutgers University Stanford University University of California at Berkeley Princeton University NIVERSITY NOFM स University of Chicago University of Michigan. Quantitative traders in USA have an average yearly salary of $138,000. Tools based on MATLAB, C#., C++, R, JAVA, etc. are recommended for people learning the ropes of quantitative trading. Java According to DR. ERNEST CHAN, a quantitative trader, consultant, and co-founder of EXP Capital Management, LLC., a Chicago-based investment firm, going independent as a quant trader is only for those who have: at least $50,000 of cash that can be lost without significant lifestyle impact; self-discipline, emotional control, patience, and the ability to endure short-term pain; and basic knowledge of statistics and good programming skills. MYTHBUSTERS The biggest myth in quantitative trading is that once you have built a system, you can just lay back, relax, and watch millions of dollars in profits roll into your trading account. NO! systems have bugs and also they become outdated very rapidly. Strategies get old and die. In reality. most of independent quant traders became consistently profitable only after I year of trading. Sources: http://www.wisegeek.com/what-is-quantitative-trading.htm http://www.indeed.com/salary?gl=Quantitative+Trader&ll=us http://en.wikipedia.org/wikilMaster_of_Quantitative_Finance https://www.quantnet.com/interview-with-ernie-chan/ http://www.etoro.comleducation/quantitative-trading-it-right-you.aspx http://www.advancedtrading.comlarticles/209102204