Quants and Trader?

[claudewang]

Hi, everyone:

I am a newbie here. I know here is mainly about "Quants" jobs and related stuff. How about "Trader" jobs? Especially those need to share some similar quants background. Or if here is not the right place, can someone please recommend me some right links? Thank you very much & best to your careers!

Claude.

 

[Muting]

Quants' job is to support traders and provide them with trading analytic tools. Not every desk needs quant skills (but quick math is very important to all of them). However, if you work in derivatives trading or exotics, you must know all the important ideas conceptually. And you also need to form your trading strategies in a very dynamic environment. For example, you dont need to know what is the derived process of greeks in swaptions, but you must know how the greeks will changes if the curve moves and what's your view on the movement of curves.

 

[claudewang]

Quants' job is to support traders and provide them with trading analytic tools. Not every desk needs quant skills (but quick math is very important to all of them). However, if you work in derivatives trading or exotics, you must know all the important ideas conceptually. And you also need to form your trading strategies in a very dynamic environment. For example, you dont need to know what is the derived process of greeks in swaptions, but you must know how the greeks will changes if the curve moves and what's your view on the movement of curves.

Thanks for your reply. So in the job market for Traders, the competition is more intense than Quants market or not? I mean is it more difficult or not to get a Trader job?
I am a PhD candidate (will finish in ~6 month) in experimental Physics (MSc. in theoretical physics) and have 10 years of private financial investment experience (forex, index futures and options). Considering my personality and interest, I would like to give a try for Trader jobs. Can anyone share with me some of your experience or knowledge about how to get a Trader job? Thanks very much.

 

[cstassen]

Hi

I'm currently doing an internship in a major investment bank, and I'm looking to be either a structurer or a trader. With your background, a trader job doesn't seem out of reach, but you need to do an internship! Doing a MFE is not a bad idea either!

 

[Andy Nguyen]

And don't forget about quant traders. I happen to work with Math PhDs, who design and trade with very complex models. They understand every technical details of the model as well as the underlying market goings that explain the model behavior.
I like to believe this is the way forward. Traders need to be highly technical, not just some MBA kids who can hardly do math or write some code.

 

[claudewang]

Yeah..."quant trader"... that's exactly what I want. I like to develop models and enjoy the process just as I was doing academic research. And further implement the model with programming to profit...and revise...and debug...etc. What else more can be like this to combine one's career and interest?

Andy, can you say something about the complex models your colleagues designed? I know it's kinda confidential, but can you tell us for example, what kind of mathematics they used in the modeling? Thanks~

Claude.

 

[Andy Nguyen]

Andy, can you say something about the complex models your colleagues designed?
I can tell you but I have to kill you.
Keep in mind that almost everyone in a specific product space is doing exactly the same thing, whether it's prop desks or hedge funds. They use the same models, software.
The competitive edge is the people running those desks. How you implement and use the tools make a different between you making $$ and everyone else losing $$.

 

[claudewang]

Understood, Andy! Thanks a lot.

Claude.