8 Pros And Cons of Quant Trading: Definition and Exploration

Quant trading has both pros and cons. In this article, we look at 8 pros and cons of quant trading. Even though we list both 8 pros and cons of quant trading, we believe the pros far outweigh the cons. The main reason for that is that you actually backtest an idea or hypothesis and at the same time reduce behavioral mistakes.

Trading, an abbreviation for quantified- and quantitative trading, is growing in popularity because of the possibility of having the computer do all the work and thus reduce emotions and behavioral mistakes. Quant trading was previously only available for big trading firms, but today this is a viable option for most retail traders. We believe most retail traders stand a better chance if they use the systematic approach that quant trading offers.

(Before we go on we’d like to mention that we have a backtesting course that covers all aspects of how to backtest.)