Quantitative Trading vs Algorithmic Trading

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Quantitative Trading vs Algorithmic Trading📌




Quantitative Trading – Focus on Strategy🔥

Quantitative Trading (or Quant Trading) is all about using mathematical models and statistical analysis to make trading decisions.

It uses data, numbers, and formulas to find patterns in the market.

A quant trader might say:
“If this stock drops 3% in 10 minutes, it has a 70% chance of bouncing back 2%.”

The strategy is based on probabilities and backtesting.

Think of Quant Trading as “what to trade and why” using math.

Algorithmic Trading– Focus on Strategy🤖🔥

Algorithmic Trading (or Algo Trading) is about automating the actual process of placing trades using a computer program.

It follows pre-defined rules:
“If X condition happens, then automatically Buy/Sell.”

It’s more about speed, accuracy, and discipline in execution.

Algo trading can use simple or complex logic, but it doesn’t always need deep mathematics.

 Think of Algo Trading as “how to trade it automatically.”

 

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