Understanding automation & quant trading question

Ah, you've got some great questions there! Let's break it down:

1. Automation in Equity Trading: You're right on the money. In highly liquid markets like equities, automation can handle the high volume of trades, even if there are small losses. The sheer volume makes up for it through commissions. For less liquid products like distressed debt, the potential for significant price losses necessitates a human touch to navigate the complexities.

2. Volatile Markets and Equity Automation: In volatile markets, automation can struggle due to rapid, unpredictable price changes. In such scenarios, human traders often step in to manage the situation. This would typically fall under the purview of an electronic trading desk.

3. Quantitative Trading Desks: Yes, there are quantitative trading desks. They use mathematical models to identify trading opportunities. However, it's not just about research. The models also need to be implemented, which is where the trading comes in.

4. Merger Arbitrage Desks: There are still merger arbitrage desks around, although the landscape has changed with the rise of algorithmic trading. These desks profit from the price discrepancies that occur when a company announces a merger or acquisition.

Remember, the world of trading is vast and complex. It's always evolving, so it's important to keep learning and stay adaptable. Hope this helps!

Sources: HF PM Q&A, Anyone here in ‘Electronic Trading’?, https://www.wallstreetoasis.com/forum/trading/what-are-the-top-volatility-trading-desks-at-jpm-gs-and-what-differentiates-them?customgpt=1, Cash Equities in This Day and Age