0508 – Quantitative trading is the casino model

Casinos make money, not like robbery, making big money again and again. Instead, it has a probability advantage of, say, 50.1%, and then repeats it a lot, slowly and steadily accumulating profits in each bet of the earner. Of course, this stability is also relative and within a certain time frame, rather than being profitable every moment of every day.

The same is true of quantitative trading. It is not a money printing machine model. You can make money when you open it. In essence, it is a strategy with a certain probability advantage and positive expectations, relying on the law of large numbers, a large number of executions, and finally accumulating positive benefits.

Automatically executed quantitative trading is essentially the trader’s perception of the market, and the machine just executes this perception. Moreover, this cognition is not fixed, but is constantly adjusted and evolved as the market changes.

This article is reproduced from: https://atjason.com/daily/2022-05-08.html
This site is for inclusion only, and the copyright belongs to the original author.

Leave a Comment

Your email address will not be published.