Mastering Market Momentum: The Power of Quantitative Trading in Today's Financial Landscape

Diamond Ridge Financial Academy Students, Hello!

I’m Charles Hanover, and I’m honoured to explore the world of quantitative trading with you. With over 30 years in finance, I’ve learned that in today’s volatile market, making quick and smart decisions is critical. Quantitative trading is the key to handling this challenge.

It’s not just a technical system—it’s a new way of thinking that improves investment efficiency and maximises returns. We’ll dive into leading quantitative trading strategies, find opportunities in complex market conditions, and manage risks effectively.

Let’s begin today’s learning and exploration!

Today, the UK stock market continued its strong momentum. The FTSE 100 hit a new high, boosted by market optimism around the Fed’s rate decision and strong earnings expectations from big tech companies. At the same time, positive developments in UK-based companies also helped push the market higher.

At the industry level, Smiths Group stood out. The company announced it would spin off its Interconnect and Detection division to focus on higher-growth areas. The market saw this as a move to unlock value, sending the stock soaring and making it the top gainer of the day. Meanwhile, BAE Systems rebounded strongly after a short-term pullback, showing the resilience of the defence and tech sectors. Investors remain highly focused on these industries’ long-term growth potential.

In the energy sector, despite Shell PLC’s quarterly earnings missing market expectations, improved cash flow and a $3.5 billion stock buyback plan helped ease concerns, pushing the stock slightly higher. This possible shift also shows how energy giants are carefully weighing their options during the transition process.

Overall, the FTSE 100 is up 6.1% this month, marking its best monthly performance since November 2022. In the short term, market movements are still influenced by policies and economic data. Global interest rates, corporate earnings, and geopolitical events will continue to drive volatility. Investors should closely watch policy changes to spot potential trading opportunities.

At the same time, the US stock market also performed well. All three major indexes moved higher as the Fed’s inflation data met market expectations, and strong earnings from big tech companies boosted sentiment. Although the DeepSeek incident caused a sharp sell-off in tech stocks earlier this week, the market remained strong. The Nasdaq steadily recovered, reinforcing the tech sector’s core position as solid.

On the policy side, the Trump administration announced plans to impose a 25% tariff on goods from Canada and Mexico, set to take effect on 1st February. This move could disrupt North American supply chains, particularly in the energy sector. The market is closely monitoring whether oil will be included in the tariffs. Currently, ExxonMobil and Chevron’s refining profits have plunged by 67% and 72%, respectively, putting significant pressure on energy stocks.

In the industry sector, tech stocks continue to lead the market. Apple reported a 4% revenue increase to $124.3 billion, surpassing market expectations, with earnings per share also beating analysts’ forecasts, pushing its stock higher. Meanwhile, AI and software stocks performed well—Atlassian’s earnings exceeded expectations, sending its stock up 18%, while SoundHound AI gained 6.8%. The market remains highly focused on the growth of AI-related companies, especially with news that OpenAI plans to raise $40 billion, keeping the AI sector hot.

On the Fed side, core PCE inflation data met expectations. The market widely believes aggressive rate cuts are unlikely in the short term, though the rate-cutting cycle remains in play. Gold prices hit a record high of $2.82K during the session on safe-haven demand before pulling back to $2.811K, reflecting market caution about future uncertainty.

Chicago Fed President Goolsbee stated that inflation is steadily moving towards the 2% target and expects rates to gradually decline over the next 12–18 months. However, Trump’s new round of trade policies could further disrupt global supply chains, potentially impacting the Fed’s policy direction. The market needs to remain alert to these developments.

In this market environment, the recent public test of the quantitative trading system has provided many students with a new perspective on short-term trading. Initially, some students doubted whether achieving over 10% short-term returns under current market conditions was realistic. However, after three days of large-scale public testing, the data provided a definitive answer. Market volatility and trading pace have actually created great opportunities for short-term trading, and the results of this test confirmed it.

We also applied this mindset to the stock market. Take COIN as an example—our analysts suggested buying or adding positions around $260, setting a short-term resistance at $305. When the price broke above the middle Bollinger Band and hit $305 as expected, we advised reducing positions. Later, the price pulled back to the middle Bollinger Band, which is also the 21-day moving average, with the lowest point right around the previous high of $265. This matched the support level our analysts suggested for adding positions.

For medium- to long-term holders, COIN’s price is still near the cost level, meaning short-term gains are not yet obvious.

As shown in the chart above, if students followed the short-term trading strategy, the first round of buying at $260 and selling at $305 gave a 15% return. The second round of buying at $265 and selling at $305 again brought another 15%. In just half a month, two short-term trades resulted in a total return of 30%.  

The key to this trading method is to accurately capture market fluctuations and keep locking in short-term profits instead of just holding positions and waiting for trends to develop. Based on the chart above, you can see that price movements follow a clear pattern if a quantitative trading system can capture real-time trading signals even more accurately.

Not just COIN, INOD, which we recommended buying on Tuesday, also follows a short-term trading pattern. INOD’s short-term resistance is around $38.5. Today, its price has already tested this level during trading hours. For short-term investors, taking partial profits or exiting is a good point, then waiting for a pullback before entering again.  

The short-term trading approach was even more obvious in this public test. The quantitative trading system took advantage of the major market swings caused by Trump taking office and captured profits from price differences. Many students have started to understand the logic of short-term trading through this public test. However, some still struggle to distinguish between short-term and medium to long-term trading. This is one of the key reasons why some traders don’t perform well.

There are many ways to trade in the market, and each strategy has its own use case. Short-term trading usually means holding a position for just a few days. Some traders even buy and sell multiple times in one day, which is called day trading. The biggest advantage of short-term trading is its fast profit cycle and high capital efficiency. Even in a choppy market, traders can keep making money by buying low and selling high while avoiding long-term uncertainty. However, short-term trading also comes with challenges. Since price movements happen quickly, bad trades can easily occur if not executed properly. This is especially true in volatile markets, where emotions play a huge role. Many investors panic and sell at the bottom when the market drops, then chase at the top when it rebounds, leading to losses.

On the other hand, medium to long-term trading is for investors who focus more on fundamentals and long-term trends. Medium-term trading usually means holding for weeks or months, while long-term trading can last years. The advantage of the medium to long-term trading is that it requires fewer trades, allowing investors to benefit from overall market trends. However, the downside is that positions may go through temporary market corrections, requiring more patience and risk management skills. Especially in today’s complex global economic environment with high market volatility, external factors can easily affect a pure medium to long-term holding strategy. In contrast, short-term trading allows for quicker adjustments, making it more effective in uncertain market conditions.

This is why the quantitative trading system performed so well during the public test. It accurately captured short-term market fluctuations and helped traders make quick profits in a choppy market. In the past, many investors relied on personal experience and gut feeling. But in today’s market, it’s hard to keep making profits based on intuition alone. Prices are affected by fast-changing information such as policies, economic data and earnings reports. Making precise decisions in a short time is extremely difficult. The biggest advantage of a quantitative trading system is that it can analyze market data in real-time, compare it with historical trends, predict future price movements and generate high-probability trading signals. More importantly, the system is not affected by emotions. Its logic is entirely based on market patterns and data analysis, helping investors avoid bad decisions caused by fear or greed.

For instance, on Monday, tech stocks plummeted. Many investors, fearing for AI's future growth, hastily sold at the lows. However, this was a golden buying opportunity. As the chart illustrates, even on Tuesday, amidst the market's continued descent, we recommended buying INOD. Regrettably, some students, still reeling from the previous day's losses, hesitated and missed out.  

By today, as the market rebounded, some investors feared missing out and started chasing at high prices. The result is selling low and buying high, getting trapped by the market over and over again. This is the main reason why most investors lose money. Fear and greed take over their decisions, leading them to do the exact opposite of what they should, becoming a counter-indicator in the market.

During this public test, many students realized they had serious issues with their trading psychology. One problem was the lack of systematic technical analysis experience, and they couldn't correctly identify support and resistance levels, making their trades blind guesses. Another issue was unstable trading emotions, leading to frequent impulsive actions. For example, some students expected instant profits after buying. The moment they saw a small floating loss, they immediately cut their position, missing out on a normal market pullback. This is precisely why the public test was so valuable. It helped students truly see the power of the quantitative trading system. The quantitative trading system can not only quickly catch short-term trading opportunities in the market but also help traders get rid of emotional bias and make smarter investment decisions based on data and logic.

The market moves fast, and many opportunities disappear in seconds. Traditional human analysis struggles to keep up. However, the quantitative trading system can detect market signals in real-time, analyze multiple indicators, and generate strategies with a much higher success rate. In this public test, the system performed beyond expectations. Many students saw much higher returns compared to traditional trading methods, proving that smart trading tools can significantly boost investment efficiency. During the public test, we saw that the system accurately identified short-term market opportunities, and its trade signals had an extremely high success rate. This explains why students' overall profits during the test exceeded expectations. In the past, many thought a 10%-15% return was already good. However, with the optimized short-term strategy of the quantitative trading system, many students achieved much higher returns. This is the real edge of quantitative trading.

Now, many students are asking how to buy this system and want to keep using it in real trading. Some want to get it as soon as possible and apply it to their trades immediately, while others think the price is high and prefer to earn enough profit before buying. Actually, both approaches work. The quantitative trading system is still being upgraded and improved. Before the official launch, I will continue using the current version to provide free trading guidance. Once the system is officially released, the project team will start charging fees. For those who want to be among the first buyers, you can contact my assistant to reserve your spot. Early buyers will get more discounts.

Some students also asked how to follow the upcoming trades. First, let me be clear: before the system officially launches, I will keep using the current version to offer free trading guidance. This ensures that every student can find their own profitable strategy in the market and improve their trading skills through real practice. Second, please prepare your funds in advance and get familiar with the trading process. This way, when key opportunities appear, you can act fast and won’t miss out due to hesitation. Many times, the best market opportunities only last for a short time, and a trader’s reaction speed and execution ability will directly determine their final profit. Short-term trading, in particular, is not just about technical analysis. It’s about reading market signals and acting decisively. I hope everyone can stay disciplined in the next trades, follow the strategy strictly, make the best use of their capital and maximize their profits.

Before the quantitative trading system officially launches, I will continue leading everyone in profitable trades for free. Especially for those who have pre-ordered or want to trade first to earn money for the system purchase, make sure to stay on track with the upcoming trades. With the rapid development of the global tech revolution and the ongoing bullish signals in the Crypto market, we are in a once-in-a-lifetime investment opportunity. Both the traditional financial markets and the digital asset space are going through major changes. In this era, investing is not just a way to make money but a necessary tool to fight inflation and grow your wealth.  

The current market environment requires accurate market judgment more than ever and relies on technology to improve trading efficiency. The old way of trading based on personal judgment can no longer keep up with the fast-changing market. Quantitative trading is the natural direction of this trend. For those who want to stay ahead of future trends, investing in technology and data-driven trading strategies will be a key factor in building wealth.

This public test is not the end but a new beginning. Based on the public test results, the system has shown strong adaptability to the market. Once it officially launches, it will be able to capture short-term trading opportunities in US stocks in the crypto and forex markets accurately. As the system continues improving, its features will become even more advanced, such as adding cross-asset arbitrage functions, improving trade signal timing, and enabling full automation to provide a smarter trading experience. After the test ends, we will gather all student feedback and real market data to further refine the system, ensuring it maintains stable win rates across different market conditions.

The future of investing is undoubtedly moving toward intelligent trading. The traditional method of relying on manual analysis and experience is being replaced by data-driven quantitative trading. Whether for individual or institutional investors, achieving long-term stable returns requires using more advanced tools. The true value of a quantitative trading system isn’t just about increasing win rates; it’s about helping traders break free from emotional decisions and making trading more scientific, precise, and efficient.

With high inflation and rapid AI development, more and more traditional industries are being replaced by AI technology. In this environment, relying only on a paycheck is no longer enough to grow wealth. Smart investors must learn to use the market to keep their wealth growing in the future economy. The essence of investing is not just about making short-term profits; it’s a key way to fight currency devaluation and achieve financial freedom. Those who can follow market trends and use technology to improve their trading skills will have a stronger position in future financial markets.

Next week, we will officially start our investment actions. With the support of the quantitative trading system, we will provide more precise trading guidance to help everyone achieve their profit goals. I hope every student can prepare in advance. Whether it’s fund management, trading discipline or mindset, you need to adjust to your best state and get ready for the upcoming market opportunities. Every market shift is the best chance to build wealth. The key is whether you’re ready to seize the rewards of this change. Let’s move forward together, follow market trends, and grab our own opportunities during the global financial shift to achieve steady wealth growth! If you have any questions, feel free to contact our assistant.