Why combine quantitative, algorithmic and manual trading approaches?
Why combine quantitative, algorithmic and manual trading approaches?
In the following article, we will talk about why to combine quantitative, algorithmic and manual approach to trading? And why do the most successful and richest funds in the world often do the same. We will also explain that even fully algorithmic funds based on models are actually also traded by people because the algorithms themselves were created by people and they are constantly monitoring, checking and fine-tuning them.
We will explain what it is: Quantitative approach, what are the advantages of quantitative approach and statistical approach based on complex and real data, what is Algorithmic approach and Algorithmic trading.
We will talk about the advantages of an algorithmic approach such as automation, statistics and certainties based on data and tests. Why manual access and manual trading is still beneficial and important, and why it won’t be replaced by computers and AI anytime soon. But also why people make mistakes and how they are affected by emotions, how do reasonable investors, traders and gamblers behave who operate without data, statistics and certainty, but thanks to their inflated egos they often think they can beat the market even though they don’t have data, algorithms, statistics. Let’s talk about the advantages of manual access. Why many experts recommend combining these approaches.
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