What Is Quant Trading? Core Concepts in 10 Minutes

Definition: Quant trading = trading rules coded as programs using math models. 4 cores: Strategy, Backtest, Risk, Execution.
ConceptPlain English
StrategyWhen to buy/sell
BacktestPretend trade on past data
RiskHow much to lose before stopping
ExecutionActual order placement (slippage!)

Common Strategies

Trend Following: buy strength, sell weakness. Mean Reversion: fade extremes. Arbitrage: price differences across exchanges. Grid: buy dips sell rips in a range.

Note: Quant does not equal guaranteed profit. Anyone claiming otherwise is scamming.