How do I know if I have the math skills necessary to become a quant?

Well, I'm a freshman currently finishing up calc 2, it was pretty easy to be honest finished with a 97%

36 on the math section of act

800 math 2 subject test

I've head stories of people doing quant now when they won math Olympiads during high school, I thought my math skills were up there when I realized what some other kids have accomplished a lot more with math.

So how do I realize if I'm good at math and I'm cut out to become a quant? I feel like I have great social skills so going into something corporate is an option for me.

I don't want to waste my time doing something that won't work out when I have so many other career options that I know I can handle.

 

The thing is I don't want to start wasting my time doing courses or going on a different path when I'm competing with gods in the field and end up not being able to compete on that level

than what is only required of me to go into the other jobs on ws

 
Controversial
Bob-Jones123:
The thing is I don't want to start wasting my time doing courses or a different path

than what is only required of me to go into the other jobs on ws

Quant and programming are basically the only growing jobs in high finance. Worst case scenario is that you end up working for google or whatnot.

Everybody's scared of being replaced by an algorithm. Being the guy that builds the algorithms isn't a bad gig.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

Back in 4th grade I will always remember a quote my friend told me. We were very young and innocent at the time so please do not judge his quote. He said "No matter what you do or how good you are at something; there will always be a 12 year old Chinese boy who is better than you". I took this to heart and discovered very early in life that I will never be the best at what I do, but I can still do my best. I accept the fact that I will never have a photographic memory like Bill Gates and Elon. I will never build a company like Bezos. And I will never be able to write better than Hemingway.

But it does not hurt to try to do these things. Considering the people that I mentioned are in the top .0001% or less I am fine being in the top .01%.

 
Most Helpful

Based on some internship experience, interviews, and networking (but not any real first-hand experience as a full-time quant), I might be able to offer some ideas.

I'm certain you don't need to be an extraordinary genius to be a quant, even at top hedge funds. I think if you can put up a >99th percentile score on the SAT and place in the top quarter of your college class, you probably meet the smart-enough threshold.

But the quant life is not for everyone. It definitely was not right for me despite my engineering/STEM background. Deciding whether that's what you want will take some upper-level math or computer science courses. I think when you get to algorithms, graph theory, and applied time series methods, you'll probably have a decent idea about whether you want to keep with it. The downside is it takes three years to get there.

 

Update:

Quant life seems tough tbh

Since I would say I have decent social skills to pursue something where I'm much more confident I can rely on my soft skills to get ahead

But I want to something self fulfilling and quant seems to be more up that alley, the competition is mind boggling though

 

If you want to set yourself up for the math needed, take classes in:

  • Statistics (Multivariate stats, Time series and stochastic processes, Inference, data intensive / big data statistics, stochastic calculus)
  • Machine Learning ("Classical" ML, Deep Learning)
  • Basic Optimization classes
  • General Big Data classes - you'll often be working with large data sets and huge amounts of inputs
  • CS classes (Data structures and Algorithms, Database systems, Concurrent / data intensive computing)

Quants work with a wide variety of data. You have tons of potential inputs, and you're going to work with large amounts of data - one thing is to know how to deal with that data in theory, another thing is to do it in practicality.

 

Will add that stochastic is actually only used in a few areas of quant strats; most important classes you will take are Statistics, Optimization/overfitting, and by far the most important and fundamental item in applied math: Linear Algebra.

"one for the money two for the better green 3 4-methylenedioxymethamphetamine" - M.F. Doom
 

Take some upper-level math and computer science classes, if you like them and/or can do well in them, you can probably get through quant interviews.

For starters:

  • Linear Algebra / Vector Spaces
  • Calculus-based probability and statistics
  • Stochastic Processes
  • Algorithms and Data Structures
  • Machine Learning
  • Parallel Computing

There are a lot of types of quants, from mathematics PhDs who use stochastic calculus on a daily basis to glorified programmers.

 

Idk brah, society we live in roles are pretty defined. See if you can get a makeover, try empty frames and stuff. Need to look 110% like a numbers nerd...personally I wouldn't trust the numbers coming from a quant that doesn't look like one

thots & prayers
 

You may actually be good at math, but asking your question only after calc 2 is beyond useless--simply insufficient data. You should try a few other math classes: multivariable, linear algebra, induction, etc… they are still considered basic in Math anyway and they won't waste your time, believe me.

As corny as it sounds, college is really there to explore your potentials, to discover who you are and who you aren't. Don't overlook this, because you won't be given another chance like that once you graduate. Try things as much as you can so you don't regret it later in your life. It's too sad to abandon your potential just because of what others have already achieved.

Personally, I think solid quant background + great social skills will set you up better than any of your business major peers…

 

A quant background also makes you a much better learner. You feel like a god learning applied concepts in fields like finance, because you get really used to seeing how logic flows from any given axioms to conclusions with more adaptability than any other field.

 
Henri Poincaré:
A quant background also makes you a much better learner. You feel like a god learning applied concepts in fields like finance, because you get really used to seeing how logic flows from any given axioms to conclusions with more adaptability than any other field.

It's true, CFA was a fucking cakewalk compared to some of the stuff of nightmares I sat at uni. CFA and other such knowledge based or process based topics (i.e. Business, Econ) you can study more and you will learn/know more. With maths, you either get it *or you *don't and if you don't, it could take an hour, it could take a week until it clicks.

Non-STEM will rain the MS on me but it's beyond true. The training STEM (and really, the Physics part of S and of course M, given they are the most pure theoretically, the latter moreso) gives you through the first 2X years of your life sets you up for learning advanced concepts later rather easily, because you learn how to take the axioms and think outside the box.

Offshore liffe
 

As someone who slogged through an applied math double major and hated almost every course, the answer will become apparent over time.

First course I took was Calc 3. I had an A going into the final because each exam had been a variation of: if you did the homework and know how to apply the theorem as written in the book you are fine.

The final was very theoretical in nature. No longer 'Repeat the theorem to solve for a discrete answer' but 'given how this theorem works, give me a set of solutions/very general answer that displays an actual understanding of the math'. There was a set of questions which was 'true/false, if false explain why' that I just wrote true to all of them. Ended up with a fking B- in the class solely of that final grade.

Other math courses took the same route. The theoretical ones kicked my ass, the ones which were practical I did much better in. Long story short, if you want to be a quant you need to love math and have a deeper understanding of it than monkey see monkey do repetition.

 

Use the social skills you’ve alluded to (multiple times) and go network with some people in the field in person.

If that feels more uncomfortable than asking strangers online, maybe being a quant IS the right path for you....

Life's is a tale told by an idiot, full of sound and fury, signifying nothing.
 

Quantitative finance is quite vast. There are people who succeed with just a bachelors degree and people who have PhDs from top institutions and everything in between.

There are specific areas of quantitative finance that require PhD level mathematics knowledge. These are usually roles involving derivatives pricing requiring stochastic calculus or some obscure field of math. These are usually sell side roles at banks.

Surprisingly, buyside quant is actually significantly less complex in terms of the type of math that you need to know. Mostly upper level undergraduate math is fine. Multivariate stats, linear algebra, optimization, etc. A lot of the difficulty is centered around making sure that you don't misuse the mathematics that you know as well as ensuring that data is high quality. What separates the best buyside quants is the ability to be creative with what you know and conduct research effectively and efficiently. Having a PhD often makes you better at this as it gives you a lot of practice in both being creative and doing research but I think people often think that PhD level mathematics is required. Usually it is not.

 

I'm on the s/s but I talk to these buy-side guys all day (surprise surprise), specifically the upper level guys i.e. C-/Head Researcher/PM and I completely agree, there is no need to be outstandingly good and a lot of the "hard technicals" is in fact putting in place multiple disciplines rigorously and creatively. In fact, the guys using the craziest mathematics generally don't have the best returns. The best returns are the guys who as you say, find a niche through thinking laterally.

The one thing I've seen on profiles/heard from friendly recruiters is that without a MSc it's difficult to get in to, even though BSc can be considered. Is this true?

Offshore liffe
 

Frankly it is rather humorous for you to be judging your skillset for quant at Calc 2 level. I majored in Stats - Data Science focus at a tech-heavy uni. Going in, I LOVED math, and incidentally scored 800 in the subject on SATs, so ended up qualifying for intermediate calcs from the get go. Despite their more accelerated rigor, those classes were a poor indication of ability because everybody in the "accelerated" program aced them, but only about 60% passed Stats come next semester.

The whole major was about machine learning, prediction, and reading massive data sets, so the areas we hit hard, and are an excellent indicator of field aptitude, were multivariable calc and linear algebra, stats (intermediate/advanced levels especially), and computer science. If you want to pursue the focus then incorporate some of these in your academics early on, if possible, and if you ace them or feel a lot of comfort with them then you've got the skill to proceed into the heavy stuff.

 

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