Introduction about Quantitative Trading

Quantitative trading refers to the use of modern statistical and mathematical methods, the use of computer technology to trade investment. Quantitative trading from huge historical data, audition can bring excess profits of big probability events to develop trading strategies, using mathematical model validation and fixed these laws and policies, and strictly enforce has fixed strategy to guide investment, in order to gain sustainable, stable and higher than the average excess return.Simply put, quantitative trading is programmed trading, which mainly does two things: 1. Establish mathematical models (this step requires people with rich trading experience to do); 2. 2. Buy or sell at the right time based on a mathematical model (this step is done by a computer program).Quantitative trading has been a relatively mature practice in the stock market, and the program trading of futures in mature markets around the world has accounted for 70%-80% of the total trading volume. Quantitative trading in the cryptocurrency market is also becoming increasingly popular, as it has a lot in common with the stock market.

The origin and current situation of quantitative trading

James Simmons pioneered quantitative trading and surpassed Buffett in annual returnsJames Simmons founded Renaissance Technologies Inc. in 1988 to create the Medallion Fund, a quantitative investment fund. For nearly 20 years between 1989 and 2008, the average annual return was 35% (Buffett’s was 20% over the same period). While Buffett lost 15% in the 2008 subprime mortgage crisis, Simmons made 80%. The medallion fund, which has been unbeaten for 27 years, has raked in some $55 billion.

Quantitative trading is recognized by users around the world

Due to the discipline and systematization of quantitative models, quantitative trading reduces investment risks and returns are relatively stable. As a result, the market size and share continue to expand, which has been recognized by more and more investors around the world. In 2018 alone, quantitative hedge fund assets under management in the U.S. market exceeded $1 trillion.

Why do we use the quantitative trading

The majority of retail investors in the cryptocurrency market are losing money, not because they lack understanding of the market, but simply because their trading decisions are based not on solid research and test trading methods, but on their emotions. They want to get rich quick, so they blindly take too much risk. To really make money in the market, you have to get rid of emotion and luck, rely on statistical models and mathematical ideas, and execute rational trading decisions. But it is difficult for individuals to do this, so quantitative trading is used to circumvent human frailties by setting up computer programs to perform it automatically.

According to the pre-set trading model and rules, when the model condition is triggered, the computer program will instantly complete the combination trading order and realize automatic trading.

Quantitative trading enables individual investors to have a set of logical trading strategies that have been tested by the market and achieve the trading gains that only institutional investors could achieve in the past.

Advantages of digital currency quantitative trading

More objective trading

Quantitative trading prevents investors from making irrational trading behaviors due to subjective fear or greed when the market fluctuates greatly, resulting in investment missteps.

More stable profits

Because of the statistical analysis based on the big data of the whole market, the judgment of the market situation is more accurate than ordinary people, so the profit is more stable.

Easier

Users do not need to study and judge thousands of digital currencies, do not need to stare at the transaction and do not need professional trading knowledge, only need to give the quantitative trading program algorithm, easily achieve 7*24 AI automatic trading.

Money is safe in quantitative trading

Funds are on the user’s exchange account, not on the IBTC platform

The user’s cryptocurrency is always in the user’s own exchange account, IBTC only operates funds arbitrage through the exchange API. IBTC does not store user API keys, nor does it have permission to withdraw coins.

IBTC works with the world’s TOP10 exchanges

IBTC has cooperated with Huobi, OKEx and Binance, and will continue to cooperate with other TOP10 exchanges to provide users with professional digital currency investment services.

Join us and together we can build this dream！

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June 20,2021