SERVING THE QUANTITATIVE FINANCE COMMUNITY

 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 27th, 2011, 10:07 am

I am new to this space and have been doing quite a lot of research into the quant world and how the various different components fit together (pure quant, quant developer, quant trader etc).I have a good (basic but good) understanding of what the pure quants and quant developers do, but can any tell me exactly what a quant trader does (general and day to day)? No one I have asked has come up with a comprehensive and sound answer, and from my understanding the pure quants essentially write the models which seem to do the trading, am I correct in thinking this?? I fully appreciate if this is a tad more simple that the other conversations on here, but any insight would be greatly appreciated.Thanks in advance...
 
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newbanker
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Joined: June 10th, 2007, 6:30 am

What exactly does a Quant Trader do??

April 27th, 2011, 11:09 am

Forgive my boldness, but wouldn't the answer be a union of what a quant does (pure, unpure, doesn't matter) and what a trader does?
 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 27th, 2011, 1:27 pm

thanks for replying newbanker.Perhaps that is the case, can you explain in further detail please?Also, by "unpure quant" do you mean "developer" as opposed to someone that writes the original model?thanks again.
Last edited by RBLondon1 on April 26th, 2011, 10:00 pm, edited 1 time in total.
 
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AndyNguyen
Posts: 166
Joined: December 10th, 2007, 4:08 am

What exactly does a Quant Trader do??

April 27th, 2011, 2:45 pm

Some reading would not hurthttp://www.markjoshi.com/downloads/advice.pdf
 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 27th, 2011, 2:57 pm

Hi, thanks for the link.I have read that before and found it very useful, however it still does not answer my question as to what exactly a trader does?? As I mentioned before I know what the pure quants and quant developers do, but not exactly what the traders do day to day, are they making the strategic decisions and then asking the pure quants to create the relevant models or are they using the human brain to modify and over ride the quants models?thanks for the help so far....
 
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Hansi
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Joined: January 25th, 2010, 11:47 am

What exactly does a Quant Trader do??

April 27th, 2011, 3:06 pm

I've never seen quant trader applied to anything other than just regular traders who use their own or black box models to support their decisions (or just models; black box monkey traders).Honestly it can mean anything, it's just a label. If you ask 10 random people in a large bank about it you'll most likely get 5 different answers and 5 will ask what a quant is (I'm not kidding).
 
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awm55
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Joined: January 14th, 2010, 4:49 pm

What exactly does a Quant Trader do??

April 27th, 2011, 3:19 pm

QuoteOriginally posted by: HansiI've never seen quant trader applied to anything other than just regular traders who use their own or black box models to support their decisions (or just models; black box monkey traders).at my bank this is exactly what a quant trader is.
 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 28th, 2011, 10:59 am

thanks everyone for your advice and help.I will take it that the lines between pure quant and quant trader are becoming increasingly blurred and as things stand, a quant trader could be considered as someone who "runs" the models that are written by pure quants (unless the person the writes the model also trades it). I get the feeling that "trader" is something that is a dying term and soon (if not already) they will not excist (as it seems they excist in name only at the moment). If any of this is not the case please let me know and correct me.Regarding one of my comments above, is it the case that traders still excist due to political reasons (as in its hard to "get rid" of a senior trader so quickly and its simplier to let the idea just slowly die rather then cut it out)? Thanks once again for your advice.RBLondon1
 
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Hansi
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Joined: January 25th, 2010, 11:47 am

What exactly does a Quant Trader do??

April 28th, 2011, 12:41 pm

QuoteOriginally posted by: RBLondon1I get the feeling that "trader" is something that is a dying term and soon (if not already) they will not excist (as it seems they excist in name only at the moment). What? What do you even base such a claim on.... I think you're not quite sure about how the different roles work in finance, might I suggest grabbing a copy of this:
 
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frattyquant
Posts: 362
Joined: March 4th, 2010, 8:10 am

What exactly does a Quant Trader do??

April 28th, 2011, 1:09 pm

Basically a quant trader is anyone who uses more mathematics than simple arithmetic to make trading decisions. Theres different types of quant traders too including (forgive me for making up names and being quite inexact):"Prop/Fund Quant Traders" - Basically what Hansi said"Quant Execution Traders" - Build and High Frequency Algorithms for banks"Quant Market Makers" - Trade Exotic derivatives Then there are "buyside quant traders"I'm interviewing for a trading job that would basically require me to hedge an insurance portfolio at the moment. There are similar trading roles in bank treasuries/ALM.This is by no means an exhaustive list, there's so many other possible variations. I think that a lot of non-quant traders will find them selves obsolete in the next 10 years, many already have, but "quant traders" (I think it's kind of a silly term) are here to stay.
 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 28th, 2011, 1:12 pm

Hi Hamsi,you are right, I am not 100% sure of the terms. Since my last post I have learnt that that part of the post in incorrect, I now understand the quant traders monitor, adjust and "manage" the model as it is live in the market. I also understand they are part of (a key part of) the team that develop the strategy from which the pure quants then build the models... apologies if I insulted any quant traders, not my intention at all!!If any of the above is incorrect or should be added to, please let me know.Thanks for the link BTW, I have "inside the black box" and "the big short" on order and expect them soon... will order this one aswell.Cheers
 
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RBLondon1
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Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 28th, 2011, 1:15 pm

thanks frattyquant,its all starting to make sense to me now!! best of luck with your interviews.
 
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frattyquant
Posts: 362
Joined: March 4th, 2010, 8:10 am

What exactly does a Quant Trader do??

April 28th, 2011, 1:21 pm

The first book I read was How I Became A Quant: was doing asset allocation at a private bank at that point, but reading the book inspired me to want to become a "quant". I highly recommend it!
 
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RBLondon1
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Posts: 11
Joined: April 20th, 2011, 11:24 am

What exactly does a Quant Trader do??

April 28th, 2011, 2:09 pm

interesting, thanks for that.
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