As programmed intelligent investment has become a key application scenario in the field of financial technology, quantitative investment institutions have become an important force in the domestic multi-level capital market. At present, the transaction proportion of quantitative investment in the A-share market has exceeded 20%. For individual stock speculators, for every five transactions, you are fighting against the machine. 

The industry is in a state of letting a hundred flowers blossom. On the one hand, 10 billion-level quantitative private equity firms continue to emerge; on the other hand, the development of domestic quantitative strategies is still in the initial stage, stock Alpha, CTA, stock flexible hedging, options and other strategies are widely used, overseas quantitative institutions to enter the domestic market players are still very few, the market has not encountered much impact.

Future development: 
1. How to compete under overseas advantages? 

Quantitative investment comes from overseas markets. From a global point of view, quantitative investment in overseas markets has a history of at least 50 years. Take the Bridge Water Fund in the United States as an example, the latest data show that the size of the Bridge Water Fund is 140.1 billion US dollars, ranking first in the world. The spring tide of quantitative investment in China began after the listing of Shanghai and Shenzhen 300 stock index futures, the first stock index futures in China, in 2010, and only ushered in the rapid expansion in the bull market from 2014 to 2015. At present, the largest quantitative hedge fund in China is only 10 billion yuan. 
Compared with domestic strategies, foreign strategies have the advantage of crushing, which will have a strong impact on domestic quantitative managers, learn the experience of foreign quantitative strategies, improve the ability of technological iteration, and introduce talents with overseas strategy research and development experience. it will be the running direction of domestic quantitative institutions. 

two。. Deep or wide? 
At the level of investment strategy, each strategy has its own life cycle and capacity, and the best strategy is different under different market characteristics. Next, in the increasingly crowded market environment, what direction can private equity firms develop? 
Compared with public offering funds, although the resources of private equity funds are not so rich, the advantage lies in the tolerance of supervision and more room for operation. Based on the above environment, private equity funds continue to improve the effectiveness of the strategy and optimize the iterative speed of the technology in the single strategy direction, so as to constantly expand the capacity of the advantage strategy or open up other sub-strategies, and make their own competitive advantage in the subdivision track. in order to achieve the effect of single-point breakthrough. 

3. Is the strong always strong? 
Quantitative investment is a game in which smart people use machines to play games with other smart people. Whether the game can be won or not mainly depends on four aspects: 1. What players are there in the market; 2. The cleverness of the opponent player you choose; 3. Does your ability of strategy optimization iteration continue to be better than that of the other party after each move; 4. The total number of players the game can accommodate. 

To win the game, you need to get it all right, from strategic formulation to tactical practice. if you miss any step, it may reduce your winning rate and eventually lose the game. 

The ability quadrant that a strong person needs to have is far more indistinguishable than the historical return on investment we have seen. Short-term effectiveness does not mean long-term effectiveness, historical effectiveness does not mean that the future is effective, and present effectiveness does not mean that overseas strategies are still effective after coming in. 

But there may be some dimensions other than the law of numbers that can help to confirm the temperament of the strong: 1. The trading team has an orthodox academic background in financial and mathematical statistics and more than 3 years of practical background; 2. The strategy is best tested by the full competitive environment of overseas capital markets; 3. With the investment of well-known venture capital institutions, small workshop-like short-term market survivors can be excluded from the corporate governance structure. 

Quantitative investment is a long way to go, but that's what makes it attractive, isn't it?