What is it?

Who does it?

What are the
challenges?
In the 1970s, quant trading began with manual fundamental and
technical analysis.
The 1980s saw an increase in quant strategies due to computers and
model development.
The 1990s brought high-frequency and algorithmic trading.
By the 2000s, quant trading dominated markets, continually growing in
trading volume.
Quant Trading Strategies
Statistical arbitrage
Momentum trading
Mean reversion trading
High-frequency trading
Multi-factor trading
Market Making
Index Arbitrage
Trend Following
Pairs Trading
With many more and some will be blends of
these above
1. Data-driven
2. Objective
3. Systematic
4. Automation
5. Risk management
6. Medium to High frequency
 Who does quant
trading?
Hedge funds are some of the most significant users
of quantitative trading strategies, such as
Renaissance Technologies, Two Sigma
Investments, and D. E. Shaw & Co.
Asset managers utilise quantitative trading across
many areas.
Prop trading houses became popular with their
HFT quantitative approaches, such as Tower
Research and Jump Trading.
Investment banks use quant trading for
algorithmic execution, electronic market making,
and central risk trading strategies across various
financial instruments.
Individual investors engage in quantitative trading
through platforms and tools
 Types of Roles at
Hedge Funds

Quantitative Portfolio Manager

Quantitative Researchers or Quant
Analysts (quants)
Data Scientists or Data Analysts
Software Developers
Traders
Risk Managers
 Building a Quant
Trading Business
Data quality & availability
Talent acquisition & retention
Technology and infrastructure
Regulatory compliance
Risk management
Performance measurement &
evaluation
Raising capital
 Key Trends and Challenges

AI & ML - Quant trading increasingly uses

machine learning and artificial intelligence.
Alt Data - Traders seek alternative data sources
as traditional ones saturate.
New Assets - Quant trading expands to
cryptocurrencies, commodities, and emerging
markets for diversification and new alpha
sources.
ESG - Sustainability and ESG factors influence
quant trading strategies.
Quantum computing - Impacts quant trading,
with collaborations like QCF developing
quantum algorithms for finance.
 Quant Trading
Quant Trading is growing all the time
Quant trading's future involves constant
innovation, new technologies, and data
sources.
Quant traders face a dynamic regulatory
landscape and increased competition.
Continuous learning about technologies,
machine learning, and data sources is crucial
to staying competitive and achieving industry
success.
By doing so, quant traders can stay ahead of
the competition and the alpha decay they
face, ensuring ongoing success in the industry.
 What are your thoughts?
Where do you think Ai will go in
Quant Trading?

Please like and comment below.

Thanks for reading.
All the best, Henry.
Founder of QuantLink, a specialist
search firm in the quant trading space,
aimed at providing unique
opportunities and value to our
network.