Using statistics to help optimize entry/exit points in trading securities
Quantitative Trading
When we trade stocks based on quantitative measures we take into account the mean, standard deviation, sentiment. We develop strategies that take movement relative to a strong quantitative measure and back test that strategy and develop a quantitative model to give a buy or sell signal in the underlying security.
Mean Reversion
Linear/polynomial Regression
Using stock prices as data points, we run the security of interest through a machine learning algorithm depending on the pattern of the stock into a linear regression or polynomial regression to help predict support/resistance levels.