How much math and probability theory do you use in prop trading
Thinking about moving from a fundamental L/S HF seat at a multi-strat to prop trading - I like trading more and making quick decisions / trading around events and earnings and am not a big fan of deep analysis that consumes a lot of time.
I’m def not a quant however, so wondering how much math and probability theory, etc in the interviews do you actually use on the desk?
Based on the most helpful WSO content, math and probability theory play a significant role in both the interviews and the day-to-day work of prop trading, especially at top firms. Here's a breakdown:
Interviews:
On the Desk:
If you're transitioning from a fundamental L/S HF seat, you might need to brush up on these areas to stay competitive. However, your ability to make quick decisions and trade around events could align well with the fast-paced nature of prop trading.
Sources: I'm Trying to get into Prop-Trading From a Non-Target School, https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, I'm Trying to get into Prop-Trading From a Non-Target School, From poker to prop-trading, Quantitative Analysis and Probability in Trading (Market Makers, HFT, Quant Firms)
Bump, if anyone has experience at a prop shop and can comment it would be much appreciated
"I'm not a big fan of deep analysis that consumes a lot of time" I mean this is pretty typical for almost any human. Do you mean you don't like to do difficult work? Do you like to do easy and quick analysis?
To answer your question though, yes plenty. Based on friends at prop shops, esp probability theory
Generally it is a deep understanding basic stats and probability. And by deep understanding I mean you could teach an intro to prob and stats class and the students would walk away thinking that your knowledge of the material was great and it felt like you knew it so well that you could explain anything on the subject.
Ty, helpful answer. How much would you say is done through on the job training vs already knew when joining?
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