Operation procedure and process of quantifying investment strategy
Quantitative investment is a method of investment decision-making through computer programs and mathematical models. It can help investors reduce human interference.BingofreebonusTo improve the efficiency of investment decisions. This article will introduce in detail the specific operation steps and processes of quantifying investment strategies to help investors.BingofreebonusLearn how to use quantitative methods to invest.
oneBingofreebonus. Determine investment objectives and strategy types
Before formulating a quantitative investment strategy, we need to make clear the investment objectives, such as pursuing stable returns, reducing risks and so on. Then, choose the appropriate strategy type according to the investment target, such as momentum strategy, hedging strategy, market neutral strategy and so on.
twoBingofreebonus. Data collection and collation
Quantitative investment strategy needs a lot of historical and real-time data as support. Investors need to collect data such as the price and trading volume of stocks, bonds, futures and other financial products from various channels, and clean them up for follow-up analysis.
3. Establish a mathematical model
After collecting and collating the data, investors need to establish a mathematical model to analyze the data and identify potential investment opportunities. The common quantitative models are linear regression, logical regression, principal component analysis and so on. Investors can choose the appropriate model according to their own strategy types and data analysis needs.
4. Programming implementation strategy
The mathematical model is transformed into a computer program to realize automatic investment decision. Investors can use programming languages such as Python and R to write strategy programs. In the process of writing, it is necessary to ensure the correctness and stability of the program to avoid investment losses caused by program errors.
5. Strategy back test and optimization
Before the actual investment, the strategy needs to be back-tested to test its performance in the past period of time. The return test results can provide a reference for the effectiveness of the strategy for investors. According to the return test results, investors can slightly optimize the countermeasures to improve the income and stability of the strategy.
6. Real-time monitoring and adjustment
In the process of real-time operation, quantitative investment strategy needs to monitor the performance of the strategy in real time. Investors can adjust accordingly according to market changes and strategic performance in order to adapt to the changing market environment.
7. Risk management
Although quantitative investment strategy can reduce human interference, it still needs to pay attention to risk. Investors need to set reasonable stop-loss and position management strategies to prevent large losses caused by market emergencies.
Through the above seven steps, investors can establish a complete set of quantitative investment strategy, and constantly optimize and adjust in the actual operation. Please note that quantitative investment can not completely eliminate investment risk, investors still need to be cautious in the use of quantitative strategies.