What is Quantitative Technical Analysis
Quantitative technical analysis is a mathematical technique designed to measure the effectiveness of signals through statistical modelling. Quantitative analysts are also known as “Quants” use scientific/statistical principles and objective rules to create computer models from a variety of data including historical investment and stock data. Quantitative Technical Analysis adds the use of Technical Analysis signals into the models.
There are two ways of approaching the analysis of the markets. The first is to use subjective techniques like Trend Lines and Gann Fans. There is nothing wrong with that at all. If you only work with a small number of securities, then this is a great way to work. It does take discipline to follow your rules, but it is an approach that has lasted for decades and has produced many masters of analysis.
The second way is to use Quantitative Analysis. This uses objective rules to let the computer find the candidates that you should be trading. A lot of work goes into setting up the rules and testing them to ensure that they truly do add value, but once it is done, you have a statistical model that clearly defines the expectations.
Both ways of approaching the market are valid, which one you choose depends on the type of person you are and the number of securities that you need to trade. The rest of this page is dedicated to highlighting the Quantitative strategies that are available in Optuma.
Note: Not all editions have all quantitative modules, but it is available as an optional add-on.
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If you are ready to give it a go, you can click on the “Request Trial” button. If you would like to hear from us when we publish posts on our work, make sure you sign up to our free blog. We don’t post often, but we make sure that what we post is beneficial to our clients and casual readers alike.