The bull market is like a rainbow, and quantitative trading will become the first choice for traditional funds to enter the market.
In recent times, Bitcoin has hit record highs almost every day. Ethereum is not idle either. It has risen by 45% in the past 7 days and by 76.86% in the past 30 days. It has reached a high of 1000USDT, which is only 40% away from the historical high. The encryption field is full of excitement, attracting people who stop and wait outside the market to bring their money into the market.
However, in the crypto sector, a 20% daily rise and fall has shocked many new investors. For example, on January 4, the highest BTC decline was close to 20%, and the high amplitude of 6000USDT throughout the day caused many investors to lose money. According to the data of the contract emperor market statistics report, the total contract liquidation volume of the entire network that day totaled 1.181 billion US dollars, and the number of liquidation was 74,947.
As long as Bitcoin is still standing at a high level to continue the bull market, such a high-amplitude, highly volatile market will become the norm. As a result, more and more investors have begun to choose quantitative trading software as their investment aids.
According to data from a newcomer in the field of quantitative trading-digital asset AI quantitative service platform Vtrading, the number of users of Vtrading in 2020 has increased by 540.05% year-on-year. Similarly, daily activity has also increased significantly.
Quantitative trading is generally divided into trend arbitrage, hedging arbitrage, high-frequency trading, handicap arbitrage and the use of quantitative trading strategies to make profit margins.
The birth of quantitative trading benefited from the developed market economics in the West, which has a history of more than 50 years. Well-known hedge funds such as Bridgewater Fund and Soros Fund use computers to automatically implement transactions based on algorithms.
In fact, quantitative trading is often applied to transactions of large amounts of funds in traditional financial markets. Therefore, private equity institutions and fund investment use more often, and individual investors may have less contact.
However, in the field of encryption, quantitative trading is widely used. This is based on the high volatility and excessive amplitude of digital currencies, and artificial trading strategies are difficult to adapt to high-frequency changes in the market. We all know that, in addition to new stocks in the stock market, there are generally daily limits on the rise and fall of shares. However, in the field of encryption, due to the lack of supervision, there is no such a fluctuation mechanism, which makes all encrypted assets subject to great volatility. In addition, since the market in the encryption field has no geographical restrictions, the market is globally linked, and it can be traded 7X24h, which is also the reason for the high volatility of the underlying encrypted assets.
So, what are the specific benefits of using quantitative transactions in the encryption field?
First of all, quantitative trading relies on the automatic execution of strategic tools and has strict execution discipline;
Secondly, because quantitative trading is often based on the analysis, screening and learning of massive big data, looking for the best strategy in the back-testing of the historical market in previous years, it has rigorous system analysis and logic;
Third, through horizontal and vertical comparisons, adapt to changes in market trends at any time, and make real-time multi-dimensional judgments, which are often more efficient and accurate than manual operations by individuals;
Fourth, the use of quantitative trading tools can greatly free up the time to market, and easily achieve both investment and life.
The above are only the most prominent features and advantages of quantitative trading. For the advantages such as lower participation threshold for ordinary investors and better enjoyment of the benefits and fun of digital currency transactions, this article will not repeat them for the time being.
Despite the raging global epidemic in 2020 and the turmoil of the world economy, the encryption field still shows strong vitality. With the successive entry of Grayscale, Paypal, MasterCard, Goldman Sachs, DBS Bank and other institutions, more and more investors have gradually jumped out of the relatively bleak stock market and participated in the investment boom in the crypto field.
Ordinary investors no longer have to understand the meaning of countless conceptual terms such as DeFi, NFT, public chain, PoW, anonymous currency, privacy chain, Polkadot ecology, distributed storage, and no need to master the logic of the candlestick principle. And the essence, let alone the ups and downs of some news to stimulate the downswing.
You only need to know how to use quantitative trading software, and then you can enjoy the fun of one-click billing, no need to watch the market, and wait for income.
Quantitative trading software with many advantages is becoming an auxiliary tool for many newcomers to participate in cryptocurrency investment, and the corresponding data is still increasing rapidly over time.
According to the “Securities Research Report” and data from Golden Fruit, more than 30% of foreign funds are currently quantified investment. The corresponding data currently accounts for only 8% in my country, and the corresponding volume is only 350 billion to 400 billion yuan.
It is worth mentioning that the current market value of the entire network of the encryption market is 5.24 trillion. If calculated at a volume of 30%, it is conservatively estimated that there is at least 275% room for growth in the quantitative trading of digital assets. In the future, as the underlying technology and facilities of the blockchain continue to mature and improve, the field of quantitative investment will show an explosive development trend.
Perhaps in 2021, you and I will see a different industry grand occasion.
【About Vtrading】
Vtrading started in December 2017. It aims to provide differentiated and quantitative strategy services for different user needs, providing users with a strategy of visual graphic element platform editing 1 strategy, Hbase system quick debugging and backtesting, and one-click release of PC-side strategies to APP-side strategies. For services such as shopping mall, intelligent quantitative custody execution, intelligent documentary system, independent rebate system, private customized deployment of large customers, and third-party embedded systems, users only need to authorize AI to realize automatic transactions through API.
The founding team members of Vtrading have been deeply involved in the fields of financial technology, digital assets and blockchain for many years, and have rich market experience and technical literacy. With the long-term mission of “digital asset quantitative service professionalization, efficiency, simplicity, and intelligence”, the platform is committed to building a quantitative strategy through technical means such as data, engines, and AI to achieve a win-win situation in the ecosystem.
