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Quantitative trading is a type of market strategy that relies on mathematical and statistical models to identify – and often execute – opportunities. The models are driven by quantitative analysis, which is where the strategy gets its name from. It's frequently referred to as ‘quant trading’, or sometimes just 'quant'.

Quantitative analysis uses research and measurement to strip complex patterns of behaviour into numerical values. It ignores qualitative analysis, which evaluates opportunities based on subjective factors such as management expertise or brand strength.

Quant trading often requires a lot of computational power, so has traditionally been utilised exclusively by large institutional investors and hedge funds. However, in recent years new technology has enabled increasing numbers of individual traders to get involved too.