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When it comes to subjective trading, trading coaches often emphasize the importance of establishing psychological models for traders. Some traders mistakenly believe that subjective trading means having no constraints, but trading coaches view this as creating uncontrollable risks. In reality, subjective trading allows traders to make decisions autonomously within their own psychological framework. This framework, which we emphasize in training, helps traders make sound decisions based on their personal understanding of the market. One challenge of subjective trading is that it is difficult for outsiders to detect when a trader loses control and becomes emotional. As a result, traders who use subjective trading methods need to have higher levels of self-awareness compared to other traders. Additionally, short-term trading may not be suitable for subjective trading, and younger traders may also be less suited for this approach. In contrast, quantitative trading involves quantifying decision factors to implement trading models. This approach enables back-testing of trading models, which reduces the time required to optimize models and improves risk control. Trading coaches who work with quantitative traders prioritize team cooperation, as this approach tends to facilitate mutual cooperation in trading rooms. To be effective, coaches must have a deep understanding of individual traders' models as well as the potential for cooperation among different trading models.
Now that we have a basic understanding of subjective trading and quantitative trading, let's turn our attention to the final types: programmatic trading and semi-programmatic trading. Programmatic trading involves using programs to execute specific trades based on quantitative analysis, which minimizes human interference but also reduces flexibility in strategies. On the other hand, semi-programmatic trading retains some flexibility by incorporating subjective decision-making within the context of quantitative analysis, which also reduces human/>