Quantitative Trading•寒蝉•5dOpinion

Is More Quantitative Data Always Better? Precise Ambiguity and Ambiguous Precision

The core of quantitative investing is data plus factors plus strategy: data is the raw material, factors are the processing, and strategy is the decision-making. The more data you have and the richer its variety, the more accurate the strategy should intuitively be—the more complete the information, the more accurate the judgment, which aligns with common sense. But common sense does not necessarily mean correctness. In quantitative investing, there is an invisible wall between having more data and having a good strategy. Precise Ambiguity vs. Ambiguous Precision Adding more and more pixels to an image makes the picture increasingly clear; this is an increase in resolution.