Category Archives: Quant Opinion

Awesome tips from CEOs and directors on how to get thriving Quant job!

Awesome tips from CEO and directors on how to get thriving Quant job!

You got to like the guys over at QuantNet.com

These guys posted another good article for student of any quant-wannabees. This is posted on his site. Here are some highlights from CEOs and Directors at various New York based companies. These includes tips on how to get in to this lucrative career path. Here are some high lights:

Questions about what school you got:
• Partner: Depends on the skills of candidates, not depend on the programs.
• CEO: Honestly, I really have not focused on where they came from as long as it sounded nerdy and I’ve heard of it before.
MFE vs MS:
What I generally look for is the ability to think “outside the box” or be able to withstand the stress of a trading environment. I also look for candidates that can potentially turn into good “risk managers” on the desk. I also look for a sense of passion to learn and to continue expanding their knowledge base.
We need some one really can do the job and get the profit. But if you compare MS or MFE, I may choose MFE, but if you choose MS from MIT or a MFE from a university and I never heard about it,
Doesn’t matter to me. I look for high GPAs for one. It says that the candidate took school seriously, then I look for something special about the resume, like first place in Math Olympics etc. social things like class President not as interesting to me.

Technical::
• Partner: C++ VBA, Modeling skills.
• CEO: Good programming skills in R, Matlab, C, or C++.
Top 5 things they look for:
• MD 2:
1. Strong Communications Skills
2. Strong Mathematics
3. Strong programming skills
4. Ability to think out-side the box type of mentality.
5. Good interpersonal skills.Don’t really pay much attention to the brand name of the school they went to.
• Partner: Good Communication , passion,
• High GPA, tells me they took their studies seriously,
• “The Fit”, will the candidate fit in with the others in the group, or will he/she be too difficult to assimilate into corporate life,
• Past accomplishments and anything that took initiative,
• Charity work, or mentoring shows maturity and selflessness
• University is the last thing, although I notice that I’m kind of partial to places that I’ve been to. (but that shouldn’t really matter, as long as (1) is satisfied.)

Misconceptions:
WE DON’T CARE IF YOU HAVE A PRM/FRM/CFA THOSE REPRESENT MEANS AND NOT ENDS. It’s not. It’s the fast track to mediocre bucks combined with high stress and long hours. Do this if you find it inherently interesting

Last Words:
If you put it on your resume, be ready to explain it. I’ve dinged many people for stating they knew how to do Monte Carlo simulation, but who couldn’t tell me what a random walk was (for time series MC) or what a Gaussian Copula was (for a VaR or credit risk MC).
Show me why you are better than everyone else that has a resume and test scores that looks just like yours. Show me one thing that makes you unique in all the world of quants. Good luck!

More detailed tips at:
http://www.quantnet.com/quant-job-advice-from-wall-street-executives/?goback=.gde_90917_member_29184629
Another excellent article from QuantNet.com

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

One asks how to pursue Quant career after grad school? PHD help?

One asks how to pursue Quant career after grad school? PHD help?

From Linked In:

Computer Science Undergrad Interested in Financial Engineering – Grad School?
I am a senior computer science student at DePauw University. I recently completed a summer internship developing software (not related to trading though) and I have identified automated trading and its related fields as a general area of interest (I can go more in-depth on this if you would like). My senior year project is aimed toward this goal by developing an automated arbitrage trading platform targeting online betting exchanges.

In your opinion, is grad school (for masters or a Phd.) the way to go if I want to enter this field? I am driven to succeed and interested in furthering my education. Is there any department or school you would recommend taking a look at? I have been looking at more general Computer Science programs, but should I be looking at something more specific to financial engineering?

Thank you for your time and recommendations!

Help this guy out people.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

What do people think as Goldman Sachs closes quant prop trading desk?

What do people think as Goldman Sachs closes quant prop trading desk?

Everyone is going to hedge funds. Also, it represents of 10% of their profits.

Comment below:

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Is it my imagination or are there are not so many quant job postings I have seen?

Is it my imagination or are there are not so many quant job postings I have seen?

I am seeing nowhere near the level of quant jobs posted in my Linked In groups. Am I wrong or are you seeing that too?

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Here are some very good tips to ace BOA and other investment bank job interviews for quant or developers

Here are some very good tips to ace BOA and other investment bank job interviews for quant or developers

This was from Linked In. Here is a question on what to focus when it comes to Quant based jobs:

Hi people,
I an a new member to the group.
I have an interview with BOA for equity derivatives quantitative analysis. Does anybody know what kind of questions could be asked for this position?
What should I prepare? Should I brush up my VBA and C++

You should revise black scholes, some standard stochastic calculus problems (involving the use of Ito’s lemma, simple stochastic integrals), revise probability theory (conditional, marginal, joint, independence, expectations, moments), look at various option greeks, pricing of digitals, local volatility and stochastic volatility (at least conceptually). In C++, look at inheritance, virtual functions, sorting algorithms. Good luck.

Got more. Add them by commenting below:

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Does the Goldman Sachs promote lawlessness from within? From James The Total Dipsh*t

Does the Goldman Sachs promote lawlessness from within? From James The Total Dipsh*t
From an article over at:
http://www.businessinsider.com/what-its-like-to-be-a-quant-at-goldman-sachs-2010-8
Another author was accused of a being a total dipsh*t as the comment said:
That Jesse dude is a total dipsh*t. He’s like a child that wanders into the middle of a conversation….

http://jessescrossroadscafe.blogspot.com/2010/08/road-to-serfdom-inside-goldman-sachs.html
Jesse’s article seems to be well written with gold nugget gems like:

The investment banks and brokers are an adolescent culture, high on macho and low on expansiveness in thinking to put it politely.
The difficulty is that over the past ten years the financial sector, including the once staid commercial banks, has been absolutely overwhelmed by the hedge fund and investment banking mentality, which in turn has been influencing serious policy discussions in Washington to the detriment of the nation. Most of it had to do with deregulation smearing the boundaries, and opening new opportunities for control frauds through innovation in complexity.
Goldman Sachs is primarily a big hedge fund with a lot of political clout and an inside line with the Fed. They have a trading, hedge fund culture these days. It was not always like this. At one time a firm’s reputation and their word was everything in a system founded on confidence. With a trading culture it’s all about the bottom line, with profit as virtue, and deceit in the name of profit is no vice. You do not wish to have fellows with this mindset running any substantial part of your country.

Even worse, their self-centered and short term thinking and clever manipulation of the rules has become the tail wagging the big dog of the country, because the political climate in Washington, and elsewhere, has been largely corrupted by money. And in a bubble economy, the financial centers are where the money is.
en worse, their self-centered and short term thinking and clever manipulation of the rules has become the tail wagging the big dog of the country, because the political climate in Washington, and elsewhere, has been largely corrupted by money. And in a bubble economy, the financial centers are where the money is.
Greed is indeed the greatest good, the fatal flaw behind the decline of the ‘me generation.’
Love it, read the entire article at: http://jessescrossroadscafe.blogspot.com/2010/08/road-to-serfdom-inside-goldman-sachs.html
He also left some juicy gold nuggets opinions on start ups and venture capitalists:
Note to Antonio. I have been where you are now. Watch out for the venture capitalists, and who they attempt to place on your board. They will steal your company and beggar your common shareholders if you allow them, and clap you in financial chains. Keep a close eye on cashflow and burn rates, because if you ever need second tier financing, you’re done unless you are very, very lucky. Sandhill Road is the new Tortuga.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Seriously, are Goldman Sachs quants a bunch of ‘porn fluffers’? Or is it the traders? #quant #goldman sachs

Seriously, are Goldman Sachs quants a bunch of ‘porn fluffers’? Or is it the traders?

At first, when I heard this I laughed my head off. The one comment at this articles asked, what is a ‘porn fluffer.’ It went something like this:
Reply
Ty Gibson on Aug 5, 12:41 PM said:
@Adam Smith:
It’s the “Invisible Hand” of pornography.
@007:
A “fluffer” is the behind the scenes person keeping the porn star aroused, and penis erect…
Reply
1
0
Flag as Offensive
badbob on Aug 5, 1:28 PM said:
@007:
You’re kidding….right?
Reply
4
0
Flag as Offensive
Adam Smith on Aug 5, 11:45 AM said:
Yes Courtney, can you help those of us who did not go to Penn, please do tell us, what is a “fluffer”. Since we are slow here in the BI readership community, please be specific.

Shall I continue? Anyhow, this accuses the Goldman Sachs traders to be very shortsighted and literall stealing the the thunder from the ingenious quants that invest in the heavy research at Goldman Sachs. Is it no wonder quants are underpaid for what they do?

This was further described as a life as a quant at Goldman Sachs:
We were basically the trader’s little bitches, and any quant who’s honest with himself realizes that. In time, we quants developed knee callouses from genuflecting to service the traders, on whose profits our livelihoods depended.
The only time we shone as stars was when some particularly hairy deal came up, and a befuddled trader came by, dropping off some thick bond indenture document, and asking for help4.
Peering into these deals was kind of like the zoomed-in penetration shot in a cheesy porn video: you could barely tell which end was up, which part was which, or, more importantly, who exactly was screwing whom. The quant aspect didn’t really matter at the end, as one lacrosse-playing Penn graduate would agree on price via phone with another lacrosse-playing Cornell grad, and life would resume its speedy course to another deal.
The sad truth is: quants were the eunuchs at the orgy. The fluffers on the porn set of high finance. We were the ever-present British guy in every Hollywood WWII film: there to add a touch of class and exotic sophistication, but not really matter much to the plot (and maybe even conveniently take some bad guy’s bullet).

Read more: http://www.businessinsider.com/what-its-like-to-be-a-quant-at-goldman-sachs-2010-8#ixzz0xQp1pK00
Also, from:
http://www.businessinsider.com/what-its-like-to-be-a-quant-at-goldman-sachs-2010-8
Interesting huh?

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Would you want this guy to be your quant genius or trader?

Would you want this guy to be your quant genius or trader?

Another pitch on good old Linked In. Check this guy’s 5 second elevator speech:

Here we propose automated strategy on FOREX – Wonabru strategy. It uses mathematical formulas and principles. This strategy is based mainly on Objective Value theory published in Physica A in 2007.
Here is the PnL of portfolio in time 2000-now (backtest is done using MetaTrader 5)

http://vivivi.eu/WonabruHFT/TesterGraphReport2000-2010.png

If you would like to see backtest details statistics or short theory description please follow the link:

http://www.wonabru.com

If you think the approach and the style of strategy building is interesting for you please contact me by email or phone.

Currently I am looking for a job, so I am ready to transfer my knowledge to your trading systems if you hire me.

Today we release the working expert ‘Wonabru HFT v1.0’ for download. This expert is responsible for presented results.

See www.wonabru.com for details

I see that announce of job searching with presenting the results of making money strategy is misleading many people. I would like to explain that I do not have enough capital to making money myself now. Second I am not good trader. I specialize rather in building strategies not using them. In trading very important is psyche and undertake the risk, not everybody like this. I am rather scientist and love in creation of something new. Of course I think of making money with my strategies, that is why I have Wonabru Technology firm, but I am thinking rather of selling signals from my strategies. In further future I will trading myself with my strategies but when other more basic needs will be satisfied, yet they are not, so trading make me very nervuos.
We release new version of strategy ‘Wonabru HFT’. This version is more reliable and stable, having two servers for getting signals, so if one is down second is working. Signals are the same, only way of getting signals is different. Please visit http://www.wonabru.com for details.

Our prominent signals ‘Wonabru HFT’ is consequently making profit. Check statistics of ‘Wonabru HFT’ signals on mt4i.com:

http://www.mt4i.com/users/wonabru

We are also present on rentasignal.com site:

http://www.rentasignal.com/signal/view/31888

Also we have set a signal providing service on zulutrade.com site

https://www.zulutrade.com/TradeHistoryIndividual.aspx?pid=19678

We release new installation package, which should in simple and easy way get you through installation of ‘Wonabru HFT GetSignals v2.0’.

Link for download a new release:

http://www.wonabru.com/download/WonabruHFTGetSignals.exe

Wish you positive profit…
wonabru.com team

1) On backtest – the sharp ratio is given in MetaTrader 5 Report on www.wonabru.com tab ‘FOREX Forecasting’ and it is 1.23, 1.8, 1.5, 0.13, 1, 0.71 for years 1999-2000, 2001-2002, 2003-2004, 2005-2006, 2007-2008, 2009-2010.
2) On live trading – we do not have such a calculated parameter.
2) More than two weeks of running ‘Wonabru HFT’
http://wonabru.com/backtest/Live5,08,2010.jpg

We are working on application of physics in financial analysis, nonlinear and linear time series analysis, statistics etc. We are ready to help you in doing quatitative analysis, building new trading strategies, doing research. If you are interested in outsource doing some projects, we are ready to be your partner. We provide breakthrough ideas, high math standard and affordable prices.

Please visit http://www.wonabru.com for some probe of our work and contact details.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

R, Marketcetera, ActiveQuant, and QuantLib. Is open source relevant in the world of Quant?

Our new online video courses of open source high frequency trading and QuantLib/QuantLibXL are posted here and here respectively!

R, Marketcetera, ActiveQuant, and QuantLib. Is open source relevant in the world of Quant?
Over the last twelve months, I have tinkered around with these open source projects like R, Marketcetera, ActiveQuant, and QuantLib. I kind of question the reason of these projects that have small amount documentation and community support. When I discover yet commercial platforms like Matlab, it seems to make me question why open source is still relevant.
My answer is simply. It is very relevant. There are tonnes of small quant prop shops that may not be able to afford the commercial products like Visual Studio, Matlab, and other trusted/mature tools.
First off, let me know I have no real beef with QuantLib. It is contains thousands of lines of code to support any real coder that needs the different quant models and algorithms out there. Interfacing to them is a real pain. Their other products of QuantLibXL and QuantLib SWIG is a mess. I never got it worked and it is enormously bloated. It became a complete waste of my time overall. I even email the contributor of QuantLibXL who just said the project was no longer under development. Too bad, I saw the real potential of it.
ActiveQuant is another mess. No documentation. I have posted my opinions on that.
Marketcetera looks really solid but if I want to use the Future component in Photon, I need to pay up. I don’t see the point in forking out $3000 a month on a subscription basis. I could easily get the same functionality out of Matlab. I just think I just get it done faster.
I have not really used R but I do know there is a steady momentum of this language. I have seen some demos of it. It looks just as easy and effective in Matlab’s language in terms of manipulating vectors and matrices. I cannot really say anything about this other than I question the community support as I get stuck.
When you look at the included toolkits, context help, available webinars, and central software repository, I wonder why someone would not want to use Matlab to be really productive in the involvement of quant.

Like this post? You can learn more quant secrets by registering for our newsletter. We send out frequent announcement and discoveries.

 

WE NEW HAVE SOURCE CODING SAMPLES AS PART OF OUR MEMBERSHIP. GET ACCESS HERE

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

No more bank quant jobs? Hiring freeze at Barclays, Credit Suisse, and RBS Royal Bank of Scotland?

No more bank quant jobs? Hiring freeze at Barclays, Credit Suisse, and Royal Bank of Scotland?

Here are some highlights from a relevant Bloomberg article:
Quotes:
Now that trading revenues are dropping there’s a hiring freeze on,” said John Purcell, managing director at executive search firm Purcell & Co. in London. “I wouldn’t be surprised to see people shedding traders again.”

“It’s a tough market for investment banks at the moment,.. Equity issuance is low and debt issuance fell off a cliff in the second quarter. Freezes won’t be odd.”
“We continue to be proactive about monitoring the size of our business relative to client opportunities and market conditions,”
“The war for talent has meant that the cost of hiring has gone up significantly,” UBS Chief Financial Officer “I wouldn’t expect that we’d be taking on enormous numbers.”
“A lot of the hires that companies were trying to make did not get approved by management especially those with guaranteed bonuses,”
“They are saying: sorry there is a freeze of guarantee-type hires. It’s on base-pay only.”

Stats:
Fixed-income, currencies and commodities trading was the biggest revenue contributor at investment banks from Deutsche Bank AG to Goldman Sachs Group Inc.
The sovereign debt crisis caused bonds of Portugal, Greece and Spain to plunge, making the trade less profitable and made investors more cautious in taking on risk.

Credit Suisse and Barclays Capital said on Aug. 11 they plan job cuts. Credit Suisse said it will eliminate 75 posts in the U.K. Barclays Capital is cutting 300 administrative jobs, a person with knowledge of the matter said at the time.

Bankers who would once have received between 1 million pounds ($1.6 million) to 3 million pounds in guaranteed compensation are now being offered base pay of about 200,000 pounds to 300,000 pounds, he said.
Just remember, I am just the messenger from this article.
http://www.bloomberg.com/news/2010-08-13/credit-suisse-barclays-may-be-start-of-investment-banking-hiring-freeze.html

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!