Hi all - thanks in advance for your help.
I am a quant-leaning analyst on a discretionary pod. I mostly handle data/models though I talk a lot with my PM about trade ideas, markets, tweaks to the book. I don’t have a clear contribution to pnl.
My boss has made it clear he wants me to remain data focused but I want to get an opportunity to trade. I also am getting more and more bored with model/data work especially now that ChatGPT can basically code for me.
I’ve been thinking about applying to sell-side trading roles. Is that crazy? I could apply to other pods but I think it would be hard to come in and trade day 1.
To be clear, I’m not saying I can be a PM or anything, I just want to learn more about managing risk, balancing a book, and the intricacies of actually getting trades done.
Any ideas besides applying to sell side trading roles ?
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Based on the most helpful WSO content, here are some actionable ideas for transitioning from a quant-leaning analyst role to trading:
Internal Transition Within Your Pod:
Lateral Move to Another Pod:
Sell-Side Trading Roles:
Develop Trading Skills Independently:
Networking and Mentorship:
Highlight Your Value Proposition:
Consider Smaller Quant Pods or Proprietary Trading Firms:
By taking these steps, you can position yourself for a smoother transition into trading while leveraging your existing skill set.
Sources: My Experience as a Market Risk Analyst, Advice On a Career, My Experience as a Market Risk Analyst, Q&A: Quantitative Analyst - Machine Learning, Analytics, & Quantitative Research/Investing, How do you become a Quant Trader?
I hope what you mean is you want to make the decisions. Moving to the sell side to trade, the way you're saying it, sounds like you'd be waiting for your client to call and tell you which button to click. Which is boring as hell.
Yes, the ultimate goal is to eventually make decisions as a PM, but I feel like it’s unrealistic to expect to get there without real experience managing trades and risk. From what I understand, sell-side trading gives exposure to those mechanics even if it involves less directional risk. That said, I could be off on both counts, so definitely open to being corrected.
Assuming this is bridgewater. Your experience is a common complaint I hear from my friends there. I've seen a number move to sell side macro trading rates/fx options and then move to another HF later in their careers. Noting that sell side macro traders are able to take on decent amounts of directional risk -- certainly enough to get looks from HF down the road.
Thanks for that - exactly what I had in mind. Any idea how that transition went for them? Did they have to come in very junior?
He says he’s in a pod but it does read like a Bridgewater experience. Maybe his PM is ex Bridgewater? That place is structurally designed to make sure you don’t learn anything of value. If his PM is copying that structure it’s bad news.
It could also just be a PM that wants to keep you in the dark for obvious reasons. If you’re a quant and he’s not, if you learn how to manage risk there’s nothing separating you and him. Maybe working for another PM that won’t perceive you as a threat is a better seat.
Thanks - yea I agree that going to another pod is probably a good move but I am weary of having to put in the months (more likely years) to get the new PM comfortable with me actually taking risk. Do you not see merit in the sell-side approach ?
Imo it’s really a question about the experience you will be getting. If you’re going to be moving to the same exact position in another pod it’s bad. If the pod seat has work that directly impacts PnL - the PM unambiguously uses the material you produce - it’s better than sell side.
Im (relatively) junior and feel I’m in a similar situation
bridgewater is such a wierd company - their interview process was so random and i dont understand how u identify top talent through that
everyone on here calls them a "cult" due to their approach/structure/culture
but they do post very solid returns, are the largest HF by AUM and until last year had the largest cumulative PnL of any HF (citadel overtook them)
Their China on-shore fund posted like 30% return last year which is absurd considering how challenged the mainland equity mkt has been.
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