Quant Prop firm vs. Chop Shop
I think this question may seem like a no-brainer to many on this forum, but I would still really like to hear some outside opinions - I have two offers from proprietary trading firms. One is focused on quantitative analysis in order to minimize risk. I would be paid a starting salary here, but most likely won't be making any type of bonus until I am moved onto my own desk. The other is from more of a chop shop (think Chimera/T3/etc.).
Aside from the obvious draw backs of going to a chop shop ( putting up own starting capital, higher risk, no real salary to depend on, lack of exit opps ) does anyone have any experience they could share from similar positions?
I am also wondering if working for a quantitatively based firm would provide me more exit opportunities into other roles in quantitative finance, or if I'm going to be pigeonholed to prop trading the same as taking an offer from a chop shop.
Any advice is appreciated, thanks!
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It depends on what you make of it. I was in your boat, I chose the quant firm. I just happened to have entered the prop industry in 2015 right before prop firms went belly up across the board due to all time lows in volatility. I can't speak for your firm but my firm was structured where you'd do about 1y in training and then be rolled off into your book with the expectation of becoming profitable by your second year. This is the prototypical Chicago prop trading model I believe.
I don't recommend a trading arcade unless you already have a handful of strategies formalized and you just require access to capital.
I am currently transitioning out into a similar role at a bank so if you are concerned about being pigeonholed, don't be. If you're young you can definitely lateral out. Quantitative finance is a growth sector within finance, especially with your programming skills.
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