Categories below utilize the following definitions for trading and quant:
- Trading means engaging with the market to extract a statistical (repeatable) profit -- this is called "edge."
- Quant means spelling out what you think that edge means into numbers.
Types of trading is various methods to impact the market as function of capacity and turnover and volatility. These can be categorized roughly as:
- Pairs Trading
- Structural (Carry)
- Narrative (Fundamental)
- Factors / dollar-neutral, e.g. "Grinold and Kahn style"
- Signal, e.g. "Avellaneda statarb style"
- Crypto Arbitrage / MEV
You might hear that there are only two types of trading at a high level: momentum and mean-reversion. We can further break these down into the following:
- Momentum (trend-following)
- Mean Reversion
Creating and scaling a repeatable process.
- Project Management
- Research & Development
- Alpha development
- Risk monitoring
- Metrics development