Vanguard AI 4.0 Optimizes Transaction Costs
In the early days of the establishment of the Excellence Vanguard Wealth Business School
Milton Reese attempted to create a “ lazy investment system” that could avoid emotional trading. He deeply realized the significant significance of quantitative trading in applying to all investment markets andtypes in the future, such as securities markets, various futures markets, cryptocurrency markets, foreign exchange markets, etc.
Compared to subjective trading, quantitative trading can help investors/traders deal with many problems:
1. Emotional trading:
Quantitative trading can help investors eliminate the influence of emotional factors on trading decisions, thus making trading more objective and rational.
2. Transaction execution:
Quantitative trading can automatically execute trading strategies and quickly respond to market changes, reducing human errors and delays.
3.Big data analysis:
Quantitative trading can utilize large-scale data and analysis tools to explore and analyze market patterns and trends, in order to discover potential trading opportunities.
4. Risk control:
Quantitative trading can apply strict risk management and stop loss strategies to protect investment portfolios from significant losses.
5. Statistical advantages:
Excessive trading allows investors to utilize statistical principles and mathematical models to improve the return and risk management capabilities of their investment portfolios.
6. Market arbitrage:
Quantitative trading can achieve market arbitrage and profit by quickly reflecting market price differences and potential conflicts of interest.
7. Transaction cost optimization:
Quantitative trading can reduce transaction costs through algorithms and execution strategies, such as low latency trading and high-frequency trading.
8. Diversified investments:
Through quantitative trading, diversified investment strategies can be easily implemented, including trading in stocks, futures, forex, and other asset classes. Overall, quantitative
trading can help investors improve trading efficiency and returns in decision-making, execution, and risk management.