Q&A: Quantitative Derivatives Trader, 1 year in

Question

Hey guys, Figured I'd do a Q&A because this site has helped me quite a bit in the past, and hopefully I have something to offer back. For a quick background, I graduated from a semi target as a math major, interned in IBD at a top bulge bracket, decided it wasn't for me, and now have been working as a derivatives trader at a top Chicago OMM firm for the past year or so. Feel free to ask anything, and I'll try to answer as best as I can. Apologies if it takes me a day or two to respond.

Tryna Trade · Accepted Answer

Sure - I get in around 6:15, and start my day on the trading desk. I'm actually trading until about 3:30pm (this includes both manual trading and overseeing algorithmic systems, call it a 50/50 or so split). After that, most days I'm around until 5-5:30 or so, whether that means working with devs to improve our systems, actually running quantitative projects myself to try and find a better way to trade (mostly python, little R), or something else. Very rarely am I coding the actual algorithm myself, more often I'm analyzing data to find a potential opportunity.

Tryna Trade · Answer

It's definitely crossed my mind, but I don't think I'll ever be "coded out of a job." I think as the industry becomes more and more technologically advanced my job will change with it. I think the amount of manual trading I do will decrease over time, but there will still be a need for a deep understanding of the logic and on how to manage a position.

In terms of PnL, I know the firm aims for 50% paid out to employees, but that does not mean that I get 50% of my PnL.

Tryna Trade · Answer

I would say above 70%, but it depends on your definition of "make it." Almost all new hires get to the point that they're able to actually trade, but very few get to the point where they're real ballers and make a ridiculous amount of money. 70% or so make it to the point that they are given what I consider actual responsibility, in that they have enough responsibility to potentially make or lose the firm a lot of money.

Tryna Trade · Answer

I wouldn't necessarily say harder, but there are different skills involved. For my firm, you have to definitely be the best of the best in terms of mental math ability and problem solving using logic. At a bank, knowing the markets very well is important.

In terms of breaking in, it is certainly possible and I know many people who have done it, but it will always help make you more attractive to know a coding language.

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Q&A: Quantitative Derivatives Trader, 1 year in

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Q&A: Quantitative Derivatives Trader, 1 year in

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