Investor Basics of Quantitative Investing
Whether you have a lot of experience in the investment world, or you are just starting out, there is always something new that you can implement or learn to help you make more. If you are investing at the moment, are you using traditional methods like “Buy & Hold”?
If so, you could be not only stunting your potential growth, but also increasing the risk of losing. There are much more innovative strategies available today that can provide you with much safer and wiser investment opportunities, as well as quicker expansion.
Otherwise known as quantitative investing, this is a method of low-risk high-reward investing that takes a lot of the difficulty out of the situation. Basically, you are looking to thoroughly research equities and you will be looking at whether they are large, medium, small or international caps. You will also be using a computer to fully analyze the stocks of these equities, and this will drastically cut down your risk of failure.
Your previous research allows you to create a quick shortlist that can provide you with a list of potentially good investment teams, just on their assets alone. Then, you can analyze them further using quantitative investing techniques on your computer to really drill into why they are successful. This gives you much more transparency on your potential deals, and what is and isn’t going to be feasible.
Additionally, you will be using something which is referred to as “recession probability” and it is a form of analytics that provides a ranking for various criteria currently happening on the market. By going as deep to drill into things like unemployment rates and currency exchange rates, it can provide you with a much more thorough profile of every investment opportunity you can find.
Basically, quantitative trading systems answers your questions regarding whether or not it is a good idea to be involved in those investment opportunities or not. The lower the percentage you are given by the software, the better the deal could potentially be in the future.
This system gives you a complete heads up on any potential shortcomings or booms for just about any investment opportunity you come across. It takes all of the emotion out of the investment side of things, leaving you empirical evidence to choose from instead.
In short, quantitative trading systems allow for investors to get in early with potentially lucrative investment opportunities, and it also gives early signs of a potential crash – allowing you to get out quickly and minimize any losses.
Take a look at what I feel is the best quantitative investing system by AlgoTrades.net
Chris Vermeulen