tech driven prop MMs: what do humans do?
Hi
To quote another poster from months /years ago:
"Anyone know what a "trader" at one of these market making shops does, since I'm guessing almost everything is algorithmic and automated? Especially at shops where they have separate roles for "trader" and "quant developer/programmer", so the trader can't be the one that builds the quant models."
the poor guy never got a reply. But Id be greatly interested to hear the answer from anyone in the know?
thanks
P.S. as a corollary, I'm in pursuit of a trading assistant position at a prop, but it is not abundantly clear to me what it would involve:
"executing market orders"... well beyond clicking "market buy" on any old trading platform, what more could there be to that? Besides, any number of algos can more effectively disguise and execute - shurely?
"managing trading book/portfolio at night" ... again... in practical terms what could that entail? Rearranging resting orders because the senior trader cannot reach his mouse from his bed?
And the very notion of market making... I don't see where humans realistically come in to play. Are there guys frantically smashing mouse to load up every bid / offer all day and night haha?
thanks again
oh hai?
They babysit algorithms. The trader & developer are divided in larger firms, smaller shops however those roles have merged. (unless your working for someone with 20+ years trading exp and is too rich to care about learning programming)
For your trading assistant questions; I hope you don't act like that when your at your interview. Generally speaking, your correct. Point&click into/out of positions. Or turning on executing algorithms that have a particular 'execution pattern' -- I think you're giving way to much credit to prop shops, they don't have the development teams on the scale of larger firms in the automated trading sphere. Usually, all algorithms are stand-alone applications that perform one particular function... not necessarily some magical software that has all the features; market data, oms, etc, etc. built in -- that stuff is expensive to develop.
" "managing trading book/portfolio at night" ... again... in practical terms what could that entail? Rearranging resting orders because the senior trader cannot reach his mouse from his bed? "
You have to understand how insignificant you are to the eyes of a senior trader. It has nothing to do with lazyness of the senior trader or "he cannot reach his mouse from his bed." Respect goes a long way in this business. And your view is very destructive IMO. If the guy/gal tells you to clean the dogs crap or go get his/her coffee; you do that with a smile-- and not find character faults. Be happy your getting paid to use a mouse.
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