Quantitative Trading: Part 1 - Introduction

Quantitative Trading, Algorithmic Trading, Mechanical Trading, Program Trading, and many other names describe a similar process. These aren't exactly the same thing, and like most terms, they mean different things to different people. Generally speaking, however, they all describe the process of using mathematical formulas to determine when and how to enter and exit trades.

In short, that's what I do. Now, it might seem like you need to be some sort of math or finance expert to do this, but it's really not that hard. I don't have a degree in finance, math, or physics. I'm just a regular old working stiff... a business man. What I DO have is an affinity for numbers. I do KenKen and Sudoku. I can quickly calculate percentages in my head, and I have a freakish ability to look at a spreadsheet and tell you if it's accurate or not.

Frankly, Quantitative Trading can be really complicated, but it doesn't have to be. It's simply the process of using regular and consistent formulas to execute trades. In my world the formulas are quite simple. Each day they tell me what to buy and sell, and exactly at what price.

While it might sound boring - and it can be - it's the best way I've found to trade after many long journeys of discovery. In the next few posts I will share with you the benefits of this form of trading, and more insight into how I do it. At any point you are able to see my actual trades and results through CoVestor in the upper corner.

Good Trading...