Leave Your Emotions at the Door!
Emotion is an Investor's worst enemy. Fear causes us to sell low. Greed causes us to buy high. Comfort often results in complacency.
iQUANT.pro models are quantitative - they follow a set of rules that are unemotional and time-tested. We've built these models in an attempt to answer an investor's most pressing questions:
- What to buy
- When to buy
- When to sell
The majority of investors ask the wrong questions and everyone is looking for the next home run. iQUANT.pro realizes that it is not the individual stock that matters; it is the process that matters.
Objectivism asserts that logic is man's means of concept formation/knowledge, and that truths are absolutes. Emotions and intuitions are not means of knowledge: that you feel strongly that 2+2=5 doesn't matter. The “Investment Objectivist” believes that investment decisions should be based on facts without distortion by personal feelings or prejudices. iQUANT.pro's models do not focus on hope but evidence.
Quantitative investing is an investment approach that uses cutting-edge mathematics (facts) to identify patterns among decades' worth of stock prices and other financial market data. The ultimate goal is to find investment strategies that may have been successful in the past and may be likely to keep working in the future; then, use that knowledge to help consistently outperform the market. This is a fundamentally different approach than many investors use. For example, a typical investor might try to size up a company and its stock by examining current financial statements and then form an opinion about the firm's future prospects by evaluating the quality of its management, customers and competitors. In contrast, quantitative investing is based entirely on data and facts — the hard numbers.
Potential Advantages of Quantitative Investing
Quantitative investing offers the following potential advantages…
- Unemotional. Quantitative investing uses logic and historical facts to drive decisions. iQUANT.pro strategies strip away the human bias that trips up many investors who often buy into market trends at precisely the wrong time and overlook real values.
- Back-Testable. A fact-based approach is consistent and repeatable. It is based on historical performance data to help provide results and help manage investment risk. At the heart of every iQUANT.pro investment model is the process of back-testing. A back-test is a simulation of how a real-life investment strategy might have responded to historical markets. Back-testing allows an Investor to see how successful a strategy has performed in the past, so as to have a better idea as to the probability of success in the future.
- The potential for market-beating returns. By examining years of stock returns and other financial data using powerful technology, fact-based investing seeks to identify investment strategies that were previously successful and have qualities that indicate their likelihood to succeed in today’s markets. If a time-tested set of rules has consistently outperformed in the past, that same set of rules should have a higher probability of success moving forward.