1、What is small cap strategy (1) Factor investment When it comes to quantitative strategies, factor investment is always inevitable. Since the CAPM model was proposed, factor investment has continued to develop and grow, becoming an area of widespread interest in the market. A large proportion of the strategies on the market have been created based on a variety of factors and the application of factors in the equity and bond markets has been no less successful. In the 1960s, the Capital Asset Pricing Model (CAPM) was introduced to reveal the relationship between an asset's expected rate of return (expected excess return) and risk, giving the first intuitive expression for pricing capital assets. The formula states that the expected return of an asset is determined by a set of factors and their factor exposures plus an error term. The aim of factor investment, in turn, is to find the factors that explain the return on an asset. Given that the expected return on an asset is determined by a number of factors, what is a factor? How do you find factors? According to the definition in the book Factor Investing Methods and Practices, "a factor describes some systematic risk to which many assets are jointly exposed, that risk is the driving force behind asset returns, and the factor return is formally the risk premium or risk compensation for this systematic risk, which is the common return on these assets." Translated, to be a factor, it must be able to explain the return profile of multiple assets and be able to deliver a positive return. The expected return on an asset is made up of two components, in addition to λ, there is an alpha term, called the error term, which represents the part of the expected return on an asset that cannot be explained by λ. There are two possible reasons for the appearance of alpha, either because the model has been set up incorrectly and an important factor has been missed on the right hand side, or because there may be some bias in the sample data chosen, resulting in the appearance of an alpha term under that sample data. In order to determine which of the two reasons for the occurrence of alpha, a statistical test needs to be used to make a determination. If α is significantly zero, it means that the occurrence of α is merely coincidental and does not indicate an error in the pricing model. if α is significantly zero, it means that the occurrence of α is just by chance and does not indicate an error in the pricing model. If α is significantly non-zero, it means that there is still a part of the expected return on the asset that is not fully explained by the pricing model. This situation, then, becomes an anomaly. Thus, the factors can be broadly divided into two types, a pricing factor, or λ component, and an anomaly factor, or α component. (2) Size factor In 1981 Banz found, based on 40 years of NYSE data, that the average monthly return of small-cap stocks was 0.4% higher than that of other stocks. The reason behind this may be the general reluctance of investors to hold shares in small companies, making these small companies generally underpriced, even below cost, and therefore would have a higher expected return. This has given rise to the small cap strategy, which invests in stocks with smaller market capitalisation. The market capitalisation factor has also been incorporated into the venerable Fama three-factor model and the five-factor model. Is the size factor effective in the A-share market? The study found that before 2016, the size factor was even more significant in the A-share market than in developed markets such as Europe and the US. However, during 2017-2018, large-cap stocks significantly outperformed small-cap stocks, making the validity of the size factor in the A-share market doubtful. 2. In addition to relying on a scientific strategy, quantitative trading of speculative coins also requires finding ways to save money. One of the easiest ways to do this is to take advantage of the discounted transaction fees. Although the handling fee is small, it must not be ignored. I once calculated that as long as the transactions are frequent and the transaction time is long, the accumulation of small amounts may lead to more than 10,000 U. Next, I will introduce several common ways to reduce the handling fee for large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you will not get the 20% cashback percentage.

(3) Lower FTX fees FTX is currently a very fast-growing exchange with a large number of contract players, you must sign up for FTX if you play contracts. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692

3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community to study trading, add telegram friends to pull you into the community.

1、What is small cap strategy (1) Factor investment When it comes to quantitative strategies, factor investment is always inevitable. Since the CAPM model was proposed, factor investment has continued to develop and grow, becoming an area of widespread interest in the market. A large proportion of the strategies on the market have been created based on a variety of factors and the application of factors in the equity and bond markets has been no less successful. In the 1960s, the Capital Asset Pricing Model (CAPM) was introduced to reveal the relationship between an asset's expected rate of return (expected excess return) and risk, giving the first intuitive expression for pricing capital assets. The formula states that the expected return of an asset is determined by a set of factors and their factor exposures plus an error term. The aim of factor investment, in turn, is to find the factors that explain the return on an asset. Given that the expected return on an asset is determined by a number of factors, what is a factor? How do you find factors? According to the definition in the book Factor Investing Methods and Practices, "a factor describes some systematic risk to which many assets are jointly exposed, that risk is the driving force behind asset returns, and the factor return is formally the risk premium or risk compensation for this systematic risk, which is the common return on these assets." Translated, to be a factor, it must be able to explain the return profile of multiple assets and be able to deliver a positive return. The expected return on an asset is made up of two components, in addition to λ, there is an alpha term, called the error term, which represents the part of the expected return on an asset that cannot be explained by λ. There are two possible reasons for the appearance of alpha, either because the model has been set up incorrectly and an important factor has been missed on the right hand side, or because there may be some bias in the sample data chosen, resulting in the appearance of an alpha term under that sample data. In order to determine which of the two reasons for the occurrence of alpha, a statistical test needs to be used to make a determination. If α is significantly zero, it means that the occurrence of α is merely coincidental and does not indicate an error in the pricing model. if α is significantly zero, it means that the occurrence of α is just by chance and does not indicate an error in the pricing model. If α is significantly non-zero, it means that there is still a part of the expected return on the asset that is not fully explained by the pricing model. This situation, then, becomes an anomaly. Thus, the factors can be broadly divided into two types, a pricing factor, or λ component, and an anomaly factor, or α component. (2) Size factor In 1981 Banz found, based on 40 years of NYSE data, that the average monthly return of small-cap stocks was 0.4% higher than that of other stocks. The reason behind this may be the general reluctance of investors to hold shares in small companies, making these small companies generally underpriced, even below cost, and therefore would have a higher expected return. This has given rise to the small cap strategy, which invests in stocks with smaller market capitalisation. The market capitalisation factor has also been incorporated into the venerable Fama three-factor model and the five-factor model. Is the size factor effective in the A-share market? The study found that before 2016, the size factor was even more significant in the A-share market than in developed markets such as Europe and the US. However, during 2017-2018, large-cap stocks significantly outperformed small-cap stocks, making the validity of the size factor in the A-share market doubtful. 2. In addition to relying on a scientific strategy, quantitative trading of speculative coins also requires finding ways to save money. One of the easiest ways to do this is to take advantage of the discounted transaction fees. Although the handling fee is small, it must not be ignored. I once calculated that as long as the transactions are frequent and the transaction time is long, the accumulation of small amounts may lead to more than 10,000 U. Next, I will introduce several common ways to reduce the handling fee for large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you will not get the 20% cashback percentage.

(3) Lower FTX fees FTX is currently a very fast-growing exchange with a large number of contract players, you must sign up for FTX if you play contracts. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692

3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community to study trading, add telegram friends to pull you into the community.