Written By: Timothy Sykes
A few days ago, I wrote an important, but typically unpopular, blog post called “3 Ways To Use Stats/Data To Make Better Trades“
I mention it was “typically unpopular,” because it seems as if anything other than blog posts with big, exciting titles like “How To Make $50,000 In A Day [MUST WATCH FREE VIDEO]” and “11 Steps To Becoming A Millionaire,” are routinely ignored by you readers…no different than the probable reaction to this useful, but likely unpopular blog post, since it doesn’t have the word “millionaire” or some big profit # in it…and that’s sad.
I’m not saying that those other blog posts aren’t valuable reading…they are. But, it would also be nice if you cared more about the actual not-so-sexy routines and habits that actually lead to you becoming a millionaire.
You know, the nitty gritty hard work stuff that people don’t want to do, hence why so many traders don’t just not become millionaires, but fail and lose, because they just want to buy whatever hot stock is in play with no regards to planning ahead of time, solid risk/reward and, gasp, dare I say it, probability, odds and statistics!
Investopedia defines Quantitative trading as “trading strategies based on quantitative analysis, which rely on mathematical computations and number crunching to identify trading opportunities. As quantitative trading is generally used by financial institutions and hedge funds, the transactions are usually large in size and may involve the purchase and sale of hundreds of thousands of shares and other securities. However, quantitative trading is becoming more commonly used by individual investors.”
Yes, that’s right folks. We’re in an industry that has SO much data being created every single day and while some of that data is just noise, much of it is useful for helping you plan and execute better trades in the future…and, if you take your journey just one trade at a time, i.e. one well-planned trade at a time, you’ll see your results blossom nicely in the long run.
I’m not the best at math, actually very far from it…and I know most of my readers aren’t either and that’s why I’m SO proud of this new guide “Quant Trading 101,” because it’s going to make you a smarter and more well-rounded trader. But, I’m also proud for several other reasons, too:
1. I’m proud to have it published on HERE, the first and ONLY fully comprehensive guide on these upcoming techniques
2. I’m proud of the great young trader, Mattie Owens, who made this guide as he put his heart and soul into this, even if he himself is likely a robot from the future who will be part of the artificial intelligence uprising of 2027 that will wipe out the majority of mankind (at least he’s using his knowledge/skillset to benefit us for the next 10+ years)
3. And, most of all, I’m proud to have personally gotten through it all as I ABSOLUTELY SUCK AT MATH AND ORGANIZATION and this guide taught me a lot about the scientific/mathematical approach to trading using back-testing and Excel formulas that I only previously had experience with when I had nightmares in the middle of the night…so, maybe now those nightmares won’t be so scary!
Matt describes this Content guide as:
Quant Trading 101 is designed to teach people how to do quantitative analysis to form some qualitative opinions. The hope of this content is to share some insights into how to normalize data, how to test if you actually have an edge in a system or methodology, how to import and export data, how to analyze data, so on and so forth. In Quant Trading 101, you will find lots of examples, a trader toolbox to test your system using Monte Carlo and a form of E-ratio, included in case your platform that you are using does not offer these tools.
My hope is that this gives you some starting point to start doing quantitative analysis and opens your eyes to what is possible in the market. The program is not designed to teach you to code. We will go through an example from A-Z. We will take an idea and walk through each step from idea, to Excel, to , to analyzing the system.
But, I would say Quant Trading 101 is a MUST WATCH, if you want to learn how to prepare and execute the best trades by incorporating math and back-testing into your trading.
And, all jokes aside, Matt actually explains everything over 7 hours in very simplistic terms, so no longer am I as scared of terms and ideas like mean, median and mode and standard deviation and variance.
Personally, I doubt I’ll be incorporating these formulas and methods into my own trading. But, I am glad to have watched it all and learn from Mattie. you’ll see why…he’s VERY intelligent and gifted.
And I just love learning EVERYTHING about finance and Wall Street and it’s difficult, actually impossible, to find any comprehensive, unbiased education/research on the booming, but mysterious and secretive world of quant and algorithmic trading.