Quantitative Trading

Quantitative trading is an umbrella term for a variety of trading strategies (such as statistical arbitrage, momentum trading, mean reversion trading) based exclusively on the outputs and signals of advanced quantitative, mathematical and statistical models and quantitative analysis (cf.). Computers can be programmed to create signals based on a wide array of model inputs and can function across a huge variety of markets. As long as an investment variable has an associated structured database, it can be used in quant trading. Quant traders, however, can only be as good as their models: bad inputs will invariably create bad outputs.