Quantitative researcher compensation
Hello.. Can you comment on your compensation structure as the quantitative researcher at your firm? Does it differ much from the trader compensation executing your alphas?
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How are execution traders compensated at quant shop? How does this progress?
Essentially the question is about the comp structure difference between quant researcher and quant trader
In general higher upside in quant research than execution trading. It depends how much discretion the execution traders have, but at funds it all comes down to “how much value are you adding”, at a place that is very high frequency and a lot of value (PnL) is based on transaction costs, intraday liquidity, and traders also have discretion (actually making alpha choices), the pay will reflect this. At places where the quant research is the main thing and in general execution is making sure those ideas are properly implemented in the market (and mostly just making sure they don’t screw it up) the pay will be lower. Again, it comes back to where your alpha is coming from.
What would entry level execution trader comp be and how would this typically progress?
Again extremely dependent, from what I’ve seen $100-150k entry level (if we are talking about just execution), can grow to $300-500 and obviously more if you are doing heavy lifting on the algos that improve trading performance.
Edit
Again depends on the firm. At many quant places the research and signal generation is separate from the execution and trading of them, and in certain places silo’d so is the construction of the portfolio (so you don’t see the combination of all the views). All of this is very firm dependent.
Thank you for your wonderfully detailed comment...I wonder if you can detail the comp structure for quant researchers at your fund? Do they get decent % of pnl?
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