I’ve recently gotten very interested in ways to stat arb, but without the use of high tech computers. Since as a normal investor, or even a trader, we don’t have access to highly sophisicated software, let alone machines.

If I had a brokerage that allows me to program my own logic, calculate prices, compare against other prices then execute buy and sell, that would have been great. But I doubt we have any brokerages like this, and especially able to link our orders directly to the exchanges, and a buggy program will go haywire sending buy orders wrongly.

When talking about quantitative analysis on finance, its amazing that they could use Maths to figure out mis-priced securities. I would had study hard on my Maths if I knew it could be applied.

Could there be a arb strategy with a higher time horizon, where the mispricing could exist in 1-3 months time >? Im in fact exploring it, but until then let this research work be untold.

So what do we have here, traders on fundamentals, technical, trend following, swing, and finally… quant. A special breed of maths, science, and engineering on Wall Street?