Quantitative trading is a method of trading that uses mathematical models and algorithms to identify trading opportunities. Traders analyze large sets of data to find patterns and trends that can predict future price movements. This approach often involves the use of computer programs to execute trades automatically based on predefined criteria.
The goal of quantitative trading is to achieve consistent profits by leveraging statistical analysis and computational techniques. It is commonly used in various financial markets, including stocks, commodities, and currencies. By relying on data-driven strategies, quantitative traders aim to minimize emotional decision-making and enhance trading efficiency.