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WarwickGrad
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Posts: 41
Joined: May 16th, 2007, 5:46 pm

Prop trader

May 20th, 2007, 10:29 am

I'm a day trader, looking to develop longer term trading strategies that are scaleable, therefore increasing my attractiveness to prop desks at inv banks/hedge fundsany advice as to how i can make the transition? is the quant route the right way forward?thanks in advanceps: i am 30 this year, have an MSc Economics & Finance and a BA in Accounting anf Finance from Warwick, so not the ideal quant background
 
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PDiCarterY
Posts: 102
Joined: March 15th, 2005, 7:46 pm

Prop trader

May 20th, 2007, 3:00 pm

How successful are your intra-day activities in a monthly or yearly basis?
 
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WarwickGrad
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Posts: 41
Joined: May 16th, 2007, 5:46 pm

Prop trader

May 20th, 2007, 8:02 pm

........
Last edited by WarwickGrad on May 20th, 2007, 10:00 pm, edited 1 time in total.
 
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StatTrader
Posts: 168
Joined: January 19th, 2007, 3:57 pm

Prop trader

May 20th, 2007, 9:16 pm

QuoteOriginally posted by: WarwickGradI'm a day trader, looking to develop longer term trading strategies that are scaleable, therefore increasing my attractiveness to prop desks at inv banks/hedge fundsany advice as to how i can make the transition? is the quant route the right way forward?thanks in advanceps: i am 30 this year, have an MSc Economics & Finance and a BA in Accounting anf Finance from Warwick, so not the ideal quant backgroundI don't think the quant route is your best option. Few quants ever make it to the prop desk.I think getting a prop trading job at an IB is going to be tough. Daytrading experience isn't going to count for much with these firms.I think you already have the best game plan. Develop a scalable trading strategy, build a track record, then approach some hedge funds. There are funds which essentially operate a trader pool whereby each trader is given as little as $10MM in capital. These firms might be your best bet.
 
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WarwickGrad
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Posts: 41
Joined: May 16th, 2007, 5:46 pm

Prop trader

May 20th, 2007, 10:38 pm

thanks for the useful info, advice takenany ideas as to how i can go about developing a scalable trading strategy? being a day trader, this is new territory for me
 
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StatTrader
Posts: 168
Joined: January 19th, 2007, 3:57 pm

Prop trader

May 21st, 2007, 1:35 am

duplicate post - ignore
Last edited by StatTrader on May 20th, 2007, 10:00 pm, edited 1 time in total.
 
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StatTrader
Posts: 168
Joined: January 19th, 2007, 3:57 pm

Prop trader

May 21st, 2007, 1:36 am

duplicate post - ignore
Last edited by StatTrader on May 20th, 2007, 10:00 pm, edited 1 time in total.
 
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StatTrader
Posts: 168
Joined: January 19th, 2007, 3:57 pm

Prop trader

May 21st, 2007, 1:36 am

QuoteOriginally posted by: WarwickGradthanks for the useful info, advice takenany ideas as to how i can go about developing a scalable trading strategy? being a day trader, this is new territory for meA few pointers....Trade execution obviously becomes a bigger bottleneck the more frequently your model turns over. I would be very conservative with your execution assumptions.Things you don't worry about as a day trader (stock borrow, dividends, financing, event risk) become a factor. Stock borrow can be surprisingly limited (and expensive) even in liquid names. Impact of dividends can again be significant.Market impact becomes an issue sooner rather than later if you're trading any size of note. I would recommend studying a couple of market impact models so you have some guidelines as to what sort of slippage to factor into your model.
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Prop trader

May 21st, 2007, 4:00 am

QuoteOriginally posted by: StatTraderMarket impact becomes an issue sooner rather than later if you're trading any size of note. I would recommend studying a couple of market impact models so you have some guidelines as to what sort of slippage to factor into your model. Can you give us a reference to a practical market impact model please?
 
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WarwickGrad
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Posts: 41
Joined: May 16th, 2007, 5:46 pm

Prop trader

May 21st, 2007, 8:20 pm

......
Last edited by WarwickGrad on May 31st, 2007, 10:00 pm, edited 1 time in total.
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