Gareth Henry Discusses Quantitative Investing

Before the Y2K period, a number of investors often rejected fundamental analysis as a method of picking stocks. This group of investors was quite odd and mysterious to many experts. Along with being a mysterious group of investors, they were also capable of making dramatic changes in the markets in terms of stock prices. These investors were known as program traders where they would use computer programs to create a large flow of stock orders. The investors were allowed to trade under the rules of the New York Stock Exchange and Nasdaq but there was little difference between what they were doing compared to those who use pump and dump stock schemes. Gareth Henry has used program trading throughout his career.

Back in the early 2000’s, there was a lack of techniques for measuring the impact of trading stocks and other securities. However, Program trading was able to generate big and quick profits on a consistent basis. Anyone with enough capital and skill was able to make large amounts of money within a short period of time. While the methods have not been verified in how effective they are, the techniques have been copied and resulted in massive profits. As a result, program trading became more commonplace among investors. According to Gareth Henry, program trading would soon become the backbone of a new trading method known as quantitative analysis.

Over time, program trading morphed into quantitative investing. This method of trading was based on quantitative analysis. Investors would crate and rely on mathematical calculations and number crunching to identify opportunities to make profitable trades. With quantitative analysis, investors are able to find and understand the behavior of financial securities by using mathematical and statistical models along with research and measurement. Using quantitative analysis is used to analyze a number of variables such as asset price. In recent years, quantitative analysis is used by financial institutions and hedge funds to make better investment decisions. Throughout his career, Gareth Henry has been involved in using quantitative analysis to help firms to improve their methods in evaluating investment opportunities.

With quantitative analysis, a number of investors such as Gareth Henry and financial institutions are able to more easily find ideal investment opportunities. The methods used allow investors to carefully evaluate a given security and determine its likelihood of being profitable. Since the development of quantitative analysis, investors now have a proven method to reach investment goals and ensure profitable trading on a regular basis.

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