Quantitative Analysis
a.k.a. Quant analysis, Quant
Using maths, statistics and data to find and test trading ideas, instead of gut feel or narrative.
In plain English
Using maths, statistics and data to find and test trading ideas, instead of gut feel or narrative.
Quantitative analysis treats markets as a giant data set. Quants build models from price history, economic data and anything else measurable, then test whether a pattern really has an edge or was just luck. Many strategies end up automated.
It powers hedge funds, high-frequency traders and risk departments. The danger is overfitting: torturing data until it confesses to a pattern that only existed in the past.
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