Sep 08, 2021

Got selected for the flow traders Math Test, but have no idea how well I'm prepared for that. I saw some previous posts here, but it seems quite outdated? considering there is not TradersTest available right now.

So I only have arithmetic zetamac, and rankyourbrain for practicing.

Currently I'm getting 80s for the former and around 50 at expert level for latter one.

For those who took the test before, or worked there, could you please give feedback one my current score, and hopefully other websites I could practice on that are close to flow traders math test?

Region

Any chance you have other cases/model tests from other firms? I have a copy of the Flow Traders test from a couple years ago hoping to trade

Unfortunately not..

I am interested. pm me.

Not sure if the FlowTraders math test is similar to the one of Optiver gives, but my scores were terrible compared to yours on Zetemac and RankYourBrain and I still passed Optiver's test. This site should be helpful for you: https://tradingjobs.net/. Good luck!

Hey this link is great!! Thanks a lot!

I went through the entire process. The first round is fill-in-the-blank math with the last 15 questions being multiple choice. Optiver this year was 80 questions 8 minutes and all multiple choice. Then you have an interview with recruiting and HR, which leads into a technical phone interview with a trader, and the final round case study. Considering there was zero things online to help me prepare for the case study in the way they tested it, I'm not going to give out any information on that, but I will say that for the technical phone interviews they reuse questions all from glass door.

The final round is an ETF case study so prepare by knowing the ins and outs of ETF arbitrage. Example ETF A is 50% stock X, and ETF B is 25% stock X, hedge ETF A in terms of ETF B as well as stock X. To hedge in terms of stock X, you could buy 1 share of ETF and short 1/2 of stock X to be delta neutral. In terms of hedging A with ETF B, you could be long 1 share ETF A and short 2 shares of ETF B. That kind of stuff but on a whole nother level. This is what really threw me off though - they mess with you the entire time to get you off your game. If it was a basic case study I would've been good, but the entire time they would say things are wrong that are actually correct, they would say your mic/video cut out when it actually didn't just to see how you perform under pressure. The case study is easy but be aware of them messing with your psychology. I didn't do well on the case study because of how much second-guessing I did. For me it was second nature to agree with the interviewers when they said things were wrong and I went down a rabbit hole of saying... wait  a second dude I was right the entire time and I was just trying to prove the way you got it which wasn't actually possible - they'd just say yep you were right the first time.

I just realize I kind of gave away everything about the case study that was hard lol. I applied to it back in 2020 for full-time2021, but if they didn't change anything (which I assume they didn't since interviews are still virtual) then it should be the same this year. Focus on staying calm and cool under pressure and just know the in's and outs of ETF arbitrage and how to hedge.

I didn't expected this kind of detailed explanation of how the rest of the process would be. Thanks a lot! Really appreciate it.

So they were essentially asking how to hedge a (basket/portfolio of) 0.5 shares with the share itself? Or put differently, you have N apples, how many apples do you sell to minimize the number of apples you have? I don't think it can get any more elementary, and it sounds like a screening question to decide whether it's worth digging deeper (and leak the interesting questions out).

A more interesting question would be, you have a basket consisting of two apples and one orange, how do you hedge with apples and limes?

Oh yeah you’re 100% right. The case study goes very in depth for the final round interview and I assure you that’s the final round. I’ve gone in depth enough for the case to give you help but I got denied because I didn’t have the resources to know what to study so im not giving you the entire case especially after signing something that said I wouldn’t go out of my way to release their study

any tips on resources to learn about ETFs?

i'm not even trying to be rude but the poor lad has gone and written out a sample template for what you're likely to be asked. The least you can do is put in some effort to look around on the internet and try to find out about ETF arb yourself

Sure thing, but there is plenty of incorrect information on the internet which isn't obvious unless you already possess the knowledge. Options trading and greeks is an example of an area that is notorious for having incorrect information posted all over the internet; when asking employees in the space about it, they acknowledged that there are only a few, niche, resources worth reading into for correct information. I only asked to save myself/others time when trying to learn about the concept.

Now that TraderTest.org is down I can recommend TraderMath.org, they seem to have completely mimiced the 75q/3 sections/10minutes format that Flow has. Problem with stuff like zetamac or rankyourbrain is that the questions are too easy and the format of the test is just completely different.

I heard flow traders were going downhill recently anyway, traders leaving to crypto, bad firm performance, pay down as a result and of the remaining pay it's tied up in shares + long vesting.

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