Quantitative trading refers to trading tactics that are based on quantitative analysis and that uncover trading opportunities using mathematical computations and number crunching. Price and volume are two of the more often utilized data inputs in quantitative analysis, serving as the primary inputs to mathematical models.

Quantitative trading is the practice of using mathematical formulas and algorithms to make financial decisions. Quantitative traders use quantitative analysis to identify trends in data that can be predicted. These traders then create, test, and analyze their models to determine which are most profitable.

Quantitative trading is defined as an investment strategy involving securities transaction in which investment managers rely primarily on computer models to select trades in order to generate profits.