Everything to Know about Quantitative Finance

In this article i would like to write about the new technology & research, which is called the High Frequency Trading and Quantitative Finance.

 

Firstly, we have to know what is exactly the Algorithmic-Trading. Algorithmic-Trading is based on sophisticated mathematic calculus, which is able the Algorithm to achieve more than 90% of the trading time profit. It is also connected to the field of High Frequency Trading and implemented by Forex Robots, that are trading with many open orders at the same time on the both directions – buy and sell side.

 

Quants are people, who have learnt the based mathematic and are developing better profitable Algorithmic models in the financial markets. Due to the Algorithmic-Trading algorithms are using complex mathematical models, it enables the overall model to be less risk than investing in the shares markets !

Over the time the Algorithmic-HFT model achieve a higher gain than the conventional investments instruments, such as saving account, shares as well as real-estate.

 

Secondly, many believe that all it takes to succeed in school, get a good job and get a high salary. Indeed, good pay is an important part of the formula for creating wealth – but in fact it is just one part of the three to create the wealth. The other two are: Time and a high gain on investments. Most people are well aware of the importance of the first section. Except that, there is interest in return for most people ignorant. I think, actually gain is the most critical part toward creating significant personal wealth. Physicist Albert Einstein once said that the most powerful force in the universe is compound interest ! But what Einstein knew even then, many do not understand to today. Ignorance of most of us about the power of the compound interest always surprises me.

 

Thirdly, I remember that when I was just beginning to develop Trading Robots for Managed Accounts at Engineering Investments House, I was very excited by the fact that you can make a gain of 50% and more per year !

 

You might be surprised that the quantitative financial’s models could do so much high gain as well as might also think the risk is also high, but due to the Algorithmic-Trading is using the High Frequency Trading model, therefore the overall risk is lowering over the time !

 

Finally but not at all, the rich people are well understand the power of the compound-interest. They know that to get rich, they should maximize yield as much as possible. Investing their money in their business, Forex market or real estate. You will not find a lot of rich people, who are investing at savings plans or hold millions of dollar in their liquid account.