The power of Quantitative trading strategy

When comes to trading there are 2 main trading strategies namely the fundamental analysis, and technical analysis. However due to the development of computer and software the area that is gaining popularity is the quantitative analysis.

At glance, the technical analysis and quantitative analysis may look similar but is different. The technical analysis is based on historic price patterns (example trendline, candlestick pattern and etc.) or uses a simpler and fix a number of past data (example 200 moving average, 14 RSI and etc.). The problem with technical analysis is subjective in analyzing the chart pattern and does not work all the time due to using a fixed number of values in an indicator. The tools of technical analysis are mostly used to confirm what already happens in the market, but they are not able to scientifically form an opinion on the upcoming market movement.

The Quantitative Analysis is based on scientific and statistical principles which can resolve the technical analysis weakness. The approach analyzes much more data and removes the subjective part of looking at chart patterns. It is because of this approach traders can achieve greater consistency in trading in an exceptionally long period of time without stress.

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