From equity vol to macro desk

To transition from an equity vol trading desk to a macro-oriented desk, here’s what you need to know based on the most helpful WSO content:

1. Timing Your Move

• Internal Moves: Timing is crucial. Generally, you should aim to stay in your current role long enough to build a strong track record (2-3 years is typical). This demonstrates commitment and allows you to develop transferable skills.
• External Moves: If internal opportunities are limited or the firm lacks a macro desk, consider external moves after establishing credibility in your current role. Networking and timing your move during hiring cycles for macro desks can be advantageous.

2. Building the Right Skillset

• Macro Knowledge: Deepen your understanding of macroeconomics, central banking, and monetary policy. Resources like "Macroeconomics for Professionals" and "Central Banking 101" are highly recommended.
• Quantitative Skills: A strong quantitative skillset is increasingly critical in macro trading. Enhance your coding abilities (Python, R, or similar) and focus on analytics that align with macro vol trading.
• Product Knowledge: Familiarize yourself with macro products like rates, FX, and their derivatives. Understanding STIRs (short-term interest rates), convexity, duration, and bond math is essential.
• Idea Generation: Start developing macro trade ideas and sharing them with PMs or desk heads for feedback. This demonstrates initiative and helps refine your macro intuition.

3. Internal vs. External Pivot

• Internal Pivot: If your firm has a macro desk, this is often the smoother route. Build relationships with the macro team, express your interest, and look for opportunities to collaborate or shadow them.
• External Pivot: If internal mobility is limited, moving externally can make sense. Highlight your transferable skills (e.g., risk management, coding, macro intuition) and tailor your pitch to the specific needs of the macro desk.

4. Positioning for a Macro/MM HF Desk

• Sell-Side Experience: Use your time on the sell-side to build a strong foundation in macro products and strategies. Focus on developing a robust understanding of carry, relative value, trend following, and policy trades.
• Networking: Build relationships with buy-side professionals and recruiters. Attend industry events and leverage platforms like WSO to connect with macro-focused professionals.
• Specialization: If you’re not in the top 1% of quant skills, consider specializing in a niche area of macro that’s harder to replicate systematically (e.g., hybrids or cross-asset strategies).

By focusing on these areas, you’ll position yourself as a strong candidate for a macro-oriented desk and, eventually, a macro/MM HF role.

Sources: https://www.wallstreetoasis.com/forum/hedge-fund/developing-macro-understanding?customgpt=1, Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions, https://www.wallstreetoasis.com/forum/job-search/help-me-formulate-a-career-plan?customgpt=1