Have you ever stopped to think about what quantitative trading really involves? It's something fascinating. In the crypto world, there are traders who make thousands of dollars a day with these strategies. Incredible, right? And some teams even reach a million monthly with automated systems. But that's nothing compared to Wall Street. There, the big fish make hundreds of millions with quantitative methods. It's crazy.

But well, what is this quantitative trading about?

Imagine an expert fisherman. That would be traditional trading. Now think of a sonar that scans the ocean floor. That is quantitative. It uses mathematical models and programmed operations. Very tech.

It has its advantages. Discipline, systematization, speed. Diversification as well. But not everything is rosy. There are sampling errors, biases, attribution problems. And the famous "black box" effect. It's a mess sometimes.

Quantitative trading was born to overcome the emotions of traditional trading. It analyzes tons of data searching for market patterns. It is used for everything: asset selection, risk management. Even in cryptos.

What are the advantages? Well, that, iron discipline. No emotional decisions. Complex systems that analyze everything from a thousand angles. Extremely fast to adapt. And it diversifies risk among many assets.

But beware, it also has its downsides. Sometimes it relies too much on the past. And when everyone uses the same strategy, it stops working. It's hard to know what causes what. Some strategies are pure mystery, based only on historical correlations.

How does it work? It collects historical data, develops mathematical models, tests strategies, and executes operations automatically. It seems simple, but it is not.

There are two main approaches: data mining and logical reasoning. Mining looks for patterns in data. Reasoning uses mathematical deductions. Each has its pros and cons.

In short, quantitative trading is a revolution in the financial world. More systematic, less emotional. But it requires a good understanding of math and staying up to date. It's not for everyone, to be honest.