Quant Trading VS Traditional Trading

2021-06-08, 09:23


Quant trading
is a market strategy that uses statistical and mathematics methods to assess opportunities. These models use quantitative analysis, thus its name “quant." Additionally, quantitative analysis features measurement and research that help to change complex patterns to numerical numbers.


This trading requires one to have computational power since it relies on programming and statistical methods. As an example, you may realize the volume of Tesla spikes followed by price. You can create a program that analyses this pattern across the tesla's market history. When the pattern rises to 90%, the model predicts a probability of 90% to occur later in the future.

Traditional trading uses human beings to come up with trading strategies. This may include specific rules that may or lack space for human discretion. This model is ideal for things that are not easy to program on the computer. Generally, human beings feel who is selling or buying in the market, the market power, and how it changes. This way, one can trade and command high prices depending on the market power.

Why People Lose Money in Crypto Trading
● Lack of high-quality trading strategy
Trading on cryptocurrency without a trading strategy is like jumping from a building. You will hurt at the end. It is important to learn high-quality strategies and master the skills. Some of the common strategies include holding, buy the dip, copy trading, and stop-limit order.

● Social media tips
Social media channels are a daily platform for communication. You will find people trying to market or sell their coins to increase traffic. Social media has biased views; hence you should always do your research.

● Leverage
Sometimes you may feel devastated when you have not used leverage or margin trading crypto properly. Leverage is recommended for experienced traders who understand the volatility of the crypto market. Do not use it if you are not confident. It would help if you always traded what you can afford to lose.

Why Choose Quant Trading

● Limitless data points
The vital benefit of quant trading is that users are able to analyze a large market across unlimited data points. Quant traders are able to use mathematics to tackle the factors. On the other hand, traditional traders use few factors to analyze the market.

● Eliminate bias
It gets rid of feelings during the execution and selection process. Therefore, it eliminates human bias that influences trading. Quant traders can have data-backed decision-making rather than letting emotions guide you.

● Profitable
It can be profitable when a quant trader creates a successful automated system.

How to Use Quant Trading Strategies on Gate.io
Gate.io is a global cryptocurrency exchange, and it ranks second in terms of ROI. Gate.io has more than 500 cryptocurrencies with diverse markets, and users can buy their favorite currencies without switching platforms. In addition, Gate.io launches a smart quant trading platform which supports one-click copy trading strategy.

Quant traders, including newbies and experienced, can use a number of strategies on gate.io. The smart quant trading strategies allow users to use various quantitative models to carry out stable, automatic, and pre-programmed transactions. Besides that, it lowers misunderstanding when making personal decisions. These strategies include:

Suitable for new users:

1. One-click copy


Users can view the revenue performance of strategies created by other users on the leaderboard. If you feel that a certain strategy is more profitable, you can copy the strategy and create your own strategy. Its annualized ROI is 5740.6%.

2. Grid trading
Users only need to select the proportion of the investment amount and click “Create AI Strategy” to create a grid trading strategy. AI automatically calculates the grid parameters with the highest profitability to store coins and does not need to manually watch the market. Seven-day annualized ROI is 106.29%.

3. Future grids
Use contract leverage to amplify the principal and obtain multiple returns. Future grids is suitable for investors who want to use contract tools but lack the corresponding experience. Seven-day annualized ROI of Future grids is 69.98%.

Suitable for basic traders:

1. MACD

MACD has the functions of real-time tracking, forecasting and judging new trends, and assisting in identifying whether the current trend is over, so that traders can accurately grasp the timing of buying and selling. If the MACD is used efficiently with other indicators, it can reduce the signal of poor profit prospects, thereby increasing the probability of a trader's profit. Its seven-day annualized ROI is 35.26%.

2. MACD-RSI
Using the combination of MACD and RSI, you can see whether the price is strong or weak. Meantime, you also can quickly realize the warning signs of price reversals. Seven-day annualized ROI is 647.42%.

3. Double moving average
Double moving average can realize real-time tracking of moving average trend signals and is suitable for slow-moving markets. Its seven-day annualized ROI is 35.26%.

4. Dual average-RSI
Use a combination of Double moving average and RSI to effectively predict future market trends and accurately grasp trading opportunities. Seven-day annualized ROI is 257.21%.

5. Custom indicator
Traders can customize indicator parameters according to their needs to create their own trading strategies. Its seven-day annualized ROI is as high as 393.64%. Suitable for professional investors.

The dual average-RSI and MACD-RDI are new strategies. The two models will enable users to predict market trade in the future and determine trading opportunities effectively. As a result, it will be more stable and bring high returns.



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