Energy Trading -> Quantitative Trading Career Path
Hello all,
I am currently a software engineering student in Canada exploring a front-office analytics internship opportunity at a major Canadian power trading firm. From my understanding, the role and industry are highly quantitative, with a large focus on statistical modelling, machine learning/AI, and general quantitative modelling. I was thinking about potential exit opportunities from internships or a stint in the field - would aiming for quant-focused roles at firms like Citadel coming out of this kind of firm be a longshot? Impossible? Perhaps an avenue to explore? Any guidance is appreciated.
Not a long shot at all. I’m not a quantitative person, currently at a major and have been hit up by quant shops to be their fundies person a few times. As a fundamental trader, the best way to get to a citadel is after several years at a major. But if you want to go quant right away and see a path, go for it. If you stay at a major for a year or two on the power desk, you’ll get hit up by funds I’d imagine. The longer you stay (3-5 years) the better the fund roles will be and maybe you go straight to trading as opposed to being their fundies person
When looking at power trading in particular here in Canada, how would you say the firms we've got compare in prestige/experience/general appeal to headhunters & setting up a career vs down south? Some sample firms here would be Powerex/TransAlta/Brookfield/OPG, from what I understand the provincial generators and subsidiaries like Powerex/OPG/Quebec Hydro/Manitoba Hydro dominate the export market in terms of volume, though I'm not sure how that relates to the appeal of experience.
Not sure on any of this to be honest. I’m in houston and in gas, not power but have been hit up by Squarepoint, and Brookfield fwiw. Said no to both, though I think Squarepoint just wanted to try to get trade ideas.
Here’s the thing though, if you’re on a power desk at a super, you’ll have people who are far smarter than you might be expecting. To work in power you need to be smart and on the spectrum of degrees, a software engineering bachelors degree will be on the lower end of the education spectrum
what do you mean by major?
Agree with above. I’ve had HH and fund approach me in the past. You’ll be noticed for having a much better idea about fundamental side of things. From the HH who mentioned about Citadel, the team is always looking for quantitative ability. But if you’re looking for quant researcher, grad school is probably a better bet unless your role showed very significant track record of building smt from scratch.
Really depends who you work under and how are mentored. But people who worked for those firms end up at funds all the time.
Quant abilities usually end up at more FTR/systemic shops which is not Citadel’s strength (on power side).
As an actual quant who has gone through this interview process, I have a different perspective.
Most of quant trading is across traditional asset classes and requires investment/buildout of tech/infrastructure. Typically, energy firms do not have what it takes to even be comparable to a quant firm. It will be extremely hard to switch into a HFT/MM/Stat arb shop at a later point (i've tried and it was too much of an uphill fight).
Most quant firms also don't trade power and they don't particularly care about your power expertise.
Sounds like a good idea tbh. Trading is trading in the end and any xp in that regard can be valuable, go for it dude.
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