Quantitative trading is linked to several fields due to its multidisciplinary nature. Here are a few areas closely related to quantitative trading:
- Mathematics: The fundamentals of quantitative trading often lie in complex mathematical theories, including financial mathematics, stochastic calculations and optimization.
- Statistics: Quants regularly use statistical techniques to model market movements, estimate risk and test the validity of their models.
- Computing: Implementing quantitative trading strategies requires efficient programming. What's more, with high-frequency trading, IT plays a crucial role in the design and execution of algorithms.
- Finance: Of course, an understanding of finance is essential. Quants need to understand financial products, markets and the general structure of the industry.
- Econometrics: This field, at the intersection of statistics and economics, is crucial for modeling economic relationships and forecasting financial time series.
- Data Science and Machine Learning: With the advent of Big Data, many quantitative trading strategies now employ machine learning models to predict market movements.
- Financial Engineering: This field focuses on the application of mathematical techniques to solve concrete problems in finance, such as options pricing or risk management.
- Physics: Surprisingly, many physicists find careers as quants because of their training in complex mathematical modeling.
In short, quantitative trading is at the intersection of many fields, and successful professionals in this area often have varied backgrounds and expertise in several of these disciplines.
Take your algo trading strategies to the next level
Use our strategy database to develop quantitative strategies faster.
✔️ Research papers
✔️ Trading rules
✔️ Performance metrics
✔️ Python code
💡 Read more:
- Trading strategies papers with code on Equities, Cryptocurrencies, Commodities, Currencies, Bonds, Options
- A curated list of awesome libraries, packages, strategies, books, blogs, and tutorials for systematic trading
- A bunch of datasets for quantitative trading
- A website to help you become a quant trader and achieve financial independence