Research on Financial Quantitative Trading Based on Hybrid DEA Data Envelopment Analysis and Integrated System Modeling

This article deals with the analysis and fine-tuning of financial quantitative trading strategies which are developed by a hybrid approach involving both DEA (Data Envelopment Analysis) and integrated system modeling. Firstly, DEA is employed in the design of a performance evaluation model that measures the risk-return efficiency of several strategies. Subsequently, there is a description of the integrated system modeling application which is used to do the mode of movement (technical trend) and behavior of the trades on the financial market, which are the natural interactions in the system. Research results show that the hybrid model overshadows traditional single models in terms of prediction accuracy, risk control, and strategy selection, laying the ground to the best of both the new theoretical and practical developments in financial quantitative trading.