【Why can quantitative trading also incur losses?】
Many people believe that automated trading programs should generate consistent profits.
But this is a misconception.
Every trading strategy works well in some market conditions and poorly in others.
📊 Trend-following strategies: generally suit markets with a clear trend.
🔄 Range-trading strategies: generally suit markets moving within a defined range.
⚠️ When market conditions change, a strategy that was previously effective may suffer consecutive losses.
💡 A truly mature quantitative system doesn’t mean it never loses; it means it can identify risks, limit losses, and continuously improve its strategies.
Many people believe that automated trading programs should generate consistent profits.
But this is a misconception.
Every trading strategy works well in some market conditions and poorly in others.
📊 Trend-following strategies: generally suit markets with a clear trend.
🔄 Range-trading strategies: generally suit markets moving within a defined range.
⚠️ When market conditions change, a strategy that was previously effective may suffer consecutive losses.
💡 A truly mature quantitative system doesn’t mean it never loses; it means it can identify risks, limit losses, and continuously improve its strategies.