Quantitative trading utilizes trading strategies based on quantitative analysis to systematically identify trading opportunities and to execute trades as identified. A Quant trader may work for the buy side or sell side of the trading industry. Buy side quants are looking to trade for investment purposes. These trades typically seek to make a profit from either short-term price movements (alpha) or from longer-term investment returns (beta.) Sell side quants provide quantitative trading in their brokerage activities. The sell side algos are typically accumulation type strategies (i.e. volume weighted average pricing – VWAP) that help investors get the best price for their overall order.
Quantitative trading techniques include high-frequency trading, sentiment analysis trading, and statistical arbitrage.
Quantitative trading is not synonymous with High-Frequency Trading (HFT) even though all HFT firms employ some form of algorithmic trading.
CloudQuant utilizes crowd researchers to provide the quantitative analysis that is then used by our quantitive traders.