Recruiting for Prop Trading

The alternative prop trader recruitment guide (Originally Posted: 10/11/2012)

I've been on the job search to be an algo trader since Winter 2010. I worked for one briefly until the office closed on all of us, and worked at Big 4 since. Finally received an offer to work in a prop shop (and an offer to work in a more quanty role in big 4).

The company that has finally taken me first met me over a year ago (summer 2011), after a broker introduced me to them ( of his clients) after my previous employer (another client of his) closed the office I was in. I was paid off well (the best evidence that I wasn't let go because of incompetence), but well and truly screwed in the job climate.

I applied EVERYWHERE with some very mixed responses. My sample size is pretty high, and I've interviewed and tested at many decent places, with varying results.

This guide is for people that dont have a perfect resume (my GPA was low and I'd had a few jobs held for not a long period of time), but know they are good enough for the job and REALLY want to do it.

Side note: This guide could easily be adapted to dating as well (not all of it), but there are some significant crossovers. The reason you cant get the girl you want is probably the reason you cant get the job you want either.

Here's a list of tips, some new, some old but still important.

1) There is 100% correlation between places that interviewed me, and places that I didn't just apply to using the online application form. They are looking for a reason to reject you, if you are in my situation, then they have a reason to reject you. It's so much harder to say no to someone to their face or over the phone (in that order). I've been rejected outright by some average companies, and interviewed by the best in the world. All it took was effort to build a relationship.

2) Careers fairs at a university are a great way to meet the recruiters. This may sound obvious but notice my use of the indefinite article. It doesn't have to be your university. While I did use my own one (a UK target), the security is non existent at other events and you can say you're alumni and you'll get in. Not a single recruiter cared, some even found it pretty resourceful.

3) Do something extraordinary. I wouldnt have had the offers I've had without a single piece of paper. A solution to a brain teaser, which I'd made harder. For clarity (and at the risk of revealing my identity to employers that see these), thos of you familiar with brain teasers will be aware of the question. I have 2000 cards in a deck .I discard the first one and put the 2nd one to the button of the deck. i repeat this process until I have 1 card left, what is it? I didn't just solve this question, I solved the case for an N card deck, putting the Xth card to the bottom of the pile. By god that got me places.

4) Break rules: Alumni services were only for people more than 2-3 years out of university? That's you. Noone checks this stuff, its pathetic how little they care. Use that to your advantage.

5) Apply to companies that aren't recruiting. It shows initiative and gives you a prescreen. Call them up, ask to send your CV (they wont say no), send it, call back a day later, they'll look at it. Ask whats missing, go and do whats missing or find a substitute.

6) Apply to companies that dont have a public profile. How to find them? Linkedin and 3 degrees of freedom. Find a random guy at a company you would like to apply to. Then click on the "people that looked at this profile also looked at." After 2-3 clicks you'll find a whole list of companies you didnt even know existed. These are largely populated by 2-3 years of experience traders from bigger firms, or founded by their ex head traders. These are great for people that dont want a formal training course, and learn by doing (like me). In prop trading, one factor counts, do you make money. Where? Fewer care. Yes brand is important but if you're in my shoes or similar, you just need a shot to prove yourself.

7) Keep learning. Coursera etc. are a great way of demonstrating you have a self drive,and picking up new skills to learn. There are a million threads on which language is best. It doesnt matter which you learn. Pick one and learn it. Make something with it that does something trivial but cool. It's an AWESOME topic at an interview.

8) Take a low paying job and do it spectacularly. People assume if noone employs you, then there's something wrong with you. When people ask what are you doing at the moment, saying between jobs is just awkward. NOONE will judge you on what you do, they WILL judge you on how you do it. Find a new process, be more efficient. Dig deeper into things that aren't in your remit. I saved my company huge amounts of money. I was a mispricing in the labour market, and was exploited hugely. Word got around that I was a cheap techie person that could automate anything and I did. resulted in a back up job offer in case this trading thing doesnt work out.

9) Big 4 is incredible for opportunities and contacts and life. Amazing work place balance (its like snatch alley here). The money is average, but the opportunities are not. They are constantly recruiting,especially in the contract labour market. and its a foot in the door with a branded company (and you can white lie that you have a full time position with them). Employing someone in demand by someone else is so much easier (as is dating). You will also have a work life balance that allows you to do other opportunities (starting a business) and their extensive training network is awesome for picking up qualifications and skills.

10) Have a Plan B. It takes the edge off each application. Prop trading is hard to get into. If it isn't going to happen for you, you need a backup plan. Mine was Big 4 (and still is), until another opportunity presents itself.

11) Dont take no for an answer, unless its from HR. They have no authority to change the procedure. However, if you're dealing with the owners or someone higher up, then you can make a counter offer, of either a trial period, or working for less money or a course that gives you the skills they say you miss. This got me 2 offers.

Oh and one last thing, learn to deal with rejection. I now embrace it. YOU ONLY NEED ONE PERSON TO SAY YES. Even with a 2% chance of getting a job. apply to 50 places. I've probably applied to over 100 firms, and the one I'm working at is a decent outfit, in the top 10 volume providers on some of the exchanges they operate on.

Will answer any questions I see in the thread. This is long enough for now.

Best of luck, stay hungry.