Making into Prop/Quant Trading

Background 

I'm in my final semester for a financial economics degree at a target school. Honestly, my GPA is atrocious with the degree deferred by a few semesters with virtually no relevant work experience. To be completely transparent, for most of my degree I hated it and was completely lost on what I wanted to do with my life and struggled with finding anything that felt purposeful or meaningful to me. I've grown out of that now and promised to myself regardless of that, I was going to pursue life with some drive and proactively find that meaning or passion. 

My parents had encouraged me into trading at a young age from primary school, and there was a period where I actively traded with simulation accounts and spent all my time reading books about great traders like reminiscences of a stock operator. But over time, I drifted away from that interest from burnout in high school, whilst somewhat following a finance route on autopilot. 

Akuna 201 Options Course 

Apologies for that long introduction, but recently I was selected for a final round interview at Akuna, which I bombed, for a junior trader role from the Akuna options 201 course. That awoke a passion in me and never in the last few years of my life had I felt so alive and fascinated by something, as when I was preparing and studying in those past two weeks. 

I understand it's extraordinarily difficult to break into quant, especially with my degree and academic history. But I'm so obsessed, I'll spend my whole life dedicated to making it and becoming the best if I have to. And I was wondering what I can do to improve my chances? 

My transcript is terrible so a masters in financial engineering is most likely not an option. But what kind of side-projects can I work on to get past the CV/transcript screening more easily (relatively fluent in python)? I was lucky that the Akuna junior trader role didn't check for a transcript surprisingly. So are there similar roles that often don't put so much emphasis on a transcript/CV? 

I'm currently studying hull and natenberg, whilst working on brain teasers/probability questions from a few other books, for interviews. I'm currently working on the heard on the street book, are there any other similar must-have books? Also what other aspects of interviews will likely come up and how can I prepare for them (sequences, mental math, market making games etc)? 

If it's also relevant, I have a few chess accomplishments reaching the state/national levels during high school and enjoy poker pretty regularly.  

Thank you so much if you've read all this, and I understand I have a higher chance of setting up my own market-making firm than breaking into quant...but I'm determined because even trying and failing is more enjoyable than any other alternative life I had prior to this.  

TLDR: 

Need tips for making into trading with these as my main questions: 

- But what kind of side-projects can I work on to get past the CV/transcript screening more easily (relatively fluent in python)? 
- What additional activities can I do to make up for my weak CV & transcript? 
- Are there similar roles that relatively don't put so much emphasis on a transcript/CV? 
- What must-have books are there for making through interviews? 
- Also what other aspects of interviews will likely come up and how can I prepare for them (sequences, mental math, market making games etc)? 
- What other routes can I take to transfer into trading?

3 Comments
 

To break into prop/quant trading with your background, here’s a focused game plan based on the most helpful WSO content:

1. Side Projects to Boost Your CV

  • Algorithmic Trading Strategies: Build and backtest trading algorithms using Python. Platforms like QuantConnect or Interactive Brokers’ API can help you simulate real-world trading.
  • Portfolio Optimization Models: Create a project showcasing your ability to optimize portfolios using Python libraries like pandas, numpy, and scipy.
  • Market Data Analysis: Analyze historical market data to identify patterns or inefficiencies. Use tools like Bloomberg Terminal (if accessible) or free data sources like Yahoo Finance.
  • Game Simulations: Develop simulations for poker or chess strategies and relate them to trading decision-making. This can highlight your strategic thinking and quantitative skills.

2. Activities to Compensate for a Weak CV/Transcript

  • Networking: Attend trading-related conferences, webinars, and meetups. Build genuine relationships with professionals in the industry. As one WSO thread suggests, long-term relationships matter more than quick networking events.
  • Competitions: Participate in trading competitions (e.g., Rotman International Trading Competition) or Kaggle challenges related to financial data.
  • Certifications: Consider certifications like the CFA Level 1 or CQF (Certificate in Quantitative Finance) to demonstrate your commitment and technical knowledge.
  • Online Courses: Complete advanced courses in Python for finance, options pricing, or quantitative trading. Platforms like Coursera, Udemy, or WSO Academy can be helpful.

3. Roles That De-emphasize Transcripts

  • Prop Trading Firms: Firms like Akuna, Jane Street, and Optiver often focus more on your problem-solving ability and less on your academic record.
  • Startups: Smaller trading firms or fintech startups may prioritize skills over formal qualifications.
  • Internships: Even unpaid internships at hedge funds or trading firms can provide valuable experience and a foot in the door.

4. Must-Have Books for Interview Prep

  • Options, Futures, and Other Derivatives by John Hull: A foundational text for understanding derivatives.
  • Option Volatility and Pricing by Sheldon Natenberg: Essential for options trading.
  • Heard on the Street by Timothy Crack: Great for brainteasers and probability questions.
  • Market Wizards by Jack Schwager: Offers insights into the mindset of top traders.
  • Come Into My Trading Room by Alexander Elder: A practical guide to trading strategies.

5. Interview Preparation

  • Mental Math: Practice quick calculations, percentages, and probability problems. Apps like Mental Math Trainer can help.
  • Market Making Games: Familiarize yourself with bid-ask spreads, inventory management, and pricing strategies.
  • Sequences and Probability: Continue working through books like Heard on the Street and explore additional resources like Quantitative Finance Interviews by Xinfeng Zhou.
  • Behavioral Questions: Be ready to explain your passion for trading, your chess/poker accomplishments, and how they relate to trading skills like risk management and strategic thinking.

6. Alternative Routes into Trading

  • Quantitative Research: Start in a research role and transition into trading once you’ve proven your quantitative skills.
  • Data Science Roles: Leverage your Python skills to enter data science roles in trading firms, which can serve as a stepping stone.
  • Sales & Trading: Consider roles in sales & trading at banks, which can provide exposure to markets and trading desks.
  • Graduate Programs: If possible, apply to rotational programs at firms like Citadel or Two Sigma, which may have less stringent GPA requirements.

Final Thoughts

Your chess and poker background is a huge asset. Highlight these accomplishments in interviews to demonstrate your strategic thinking, risk management, and ability to perform under pressure. Combine this with strong Python projects, networking, and relentless preparation, and you’ll significantly improve your chances of breaking into trading. Remember, persistence and passion often outweigh a rocky start!

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

My general sense is that historically grit had counted for more than academic achievements at many prop trading firms but less so in the quant world. The other barrier you face is most bigger firms recruit university students via on campus recruiting and have a separate process for experienced hires but don't usually recruit recent grads without any work experience. I think networking can overcome the latter barrier especially at smaller firms where the campus recruiting process is not as structured and then doing very well on brainteasers/coding could land you the full time position but it will definitely be an uphill struggle.

 

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