One of the core elements of the AQTIS ecosystem is our Quant Tech. This unique approach to generating yield has been tested and honed using billions of data points across several years. But what is it and how does it work?
In this week’s AQTIS Explained, we’ll be walking you through our Quant Tech, how it works and how it helps fuel the AQTIS ecosystem.
What is Quant Tech?
First of all, we need to explain a few key ideas before we can get to explaining what Quant Tech is.
Quant trading is trading based on quantitative analysis. Quantitative analysis, or QA as it’s sometimes referred to, refers to methods used to understand the behavior of financial markets and make more informed investment or trading decisions.
In essence: it’s the combination of mathematical and statistical techniques to analyze financial data.
At AQTIS, we use QA to build models based on the relationships between the data we gather. These models help us to predict when to enter and exit trades, and optimize the position size.
It’s a systematic approach typically found in large financial institutions that uses mathematical models combined with both historical and real-time trading data to make trading decisions, powered with our AI/Machine Learning algorithms.
It’s a continuous improvement approach, meaning the systems are always learning and looking to make improvements on each trade.
In summary: AQTIS Quant Tech is a unique set of models we have built that uses QA to help inform when to enter and exit certain trades. These models are then backtested and optimized.
Do you like AQTIS and the content we’re releasing? Support our efforts by subscribing and clicking the “Clap” 👏 button, boosting the Medium algorithm, increasing our visibility! 👍
What trading strategies does AQTIS use?
In Q1 2024, we have created eight different trading strategies — with six currently deployed, two are in testing. These have taken several years to develop. Each of these strategies is designed to take advantage of certain market conditions. These strategies are:
- Breakout Long
- Breakout Short (in testing)
- Mean Reversion Long
- Mean Reversion Short
- Trend Following Long
- Trend Following Short
- Momentum Long
- Momentum Short (in testing)
The AQTIS trading strategy is built around assessing market conditions and performing trades that are most beneficial during the current market phase. Because some strategies will underperform during times when others might overperform, we re-allocate capital in the portfolio to the strategies that deliver the best returns in that moment.
Other traders may use one strategy during all market conditions, but by combining multiple strategies we can take advantage of all market conditions, helping AQTIS generate consistent yield.
We are developing new strategies that can also be deployed and will share those at a later date.
Where does AQTIS get its data from?
We purchase datasets from exchanges but also analytics companies. The more data we have access to, the more information our machine learning systems can learn from, which will help improve decision-making.
What data does AQTIS use to inform its trades and trading strategies?
We use a wide range of data to help power our quant tech. This includes:
- Price data
- Trading Volume
- Open Interest
- Funding rates
- Market sentiment
- Order books
Using this raw data, we create multiple custom indicators to get insights into the market.
❓ Questions or Feedback?
As always, we’re eager to answer all your questions and consider your suggestions. We’d love to hear your thoughts, so please share them in our Telegram or Discord.
Would you like to better understand and eventually beat the markets?
AQTIS is delivering an institutional-grade Market Insights Newsletter straight into your inbox, for free! ▶️ Subscribe here!
That’s all for now. Stay tuned for more exciting updates, and we’ll catch you in the next one!
