6 Types of Quants
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- Опубликовано: 27 июл 2024
- There are 6 types of quant finance positions in general and this video covers those 6 types of jobs in greater detail. This video should provide students an idea of the types of jobs available after graduating from a quant degree like financial engineering or mathematical finance.
1) Front office/desk quant
2) Model validating quant
3) Research quant
4) Quant developer
5) Statistical arbitrage quant
6) Capital quant
Quant Advice Doc (updated link):
drive.google.com/file/d/1ENm1...
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Very informative. Thank you Dimitri!
Under appreciated legend. Great videos man.
Ahmed Bafadal thank you! I love getting feedback from my subscribers. Let me know if there is any topic you want covered. There is a video on quant compensation coming soon which should be good.
Hey Dimitri, thanks for the information!
Thanks for sharing your knowledge!!
Man, you are honestly the best, and you are helping me so much on thinking what to do in the future. Wish you a lot of success in your job and family, and I hope one day I can get you at least a beer to compensate you for your great job!
Thanks! I appreciate the feedback. I actually will be announcing some personal accomplishments over the next few months.
Great video! Thanks.
Thank you for the resources!! Great video!! New sub here
Thanks for the helpful insight...content is concise and easily digestible.
Thanks
*Thanks for the document*
Karim Tit no problem. Happy to help!
such a great video thanks
Hey Dmitri,
Loved the video! Do you know how much a Quant Researcher is typically compensated relative to the other types of quants mentioned in the video, and what type of educational background they have (Bachelors, Masters, PhD)?
All quant roles will require a masters or higher in the US. Research jobs are mainly PhDs though. The compensation between quant roles is usually similar. Most start at a base salary around $70-120k.
So where does a quant trader fall into
Hey Dimitri! Thoroughly enjoying your videos so far. I would love to download the document you mentioned but the link is broken.
I've uploaded a copy to my Google Drive. For some reason people keep taking down the document.
drive.google.com/file/d/1ENm1RH9rwrnCuSq8cc9awuwekaETEDIA/view?usp=sharing
Hi DImitri, I am a business technology management student in university and I have coding knowledge in Python. I actually am really interested in quant and wanted to kind of figure out what type of quant I want to become. I love statistics and pretty good in math and slowly learning to code as well. But I am kind of lost into how i become a quant; is there a specific path? For example do I have to do a specific master's degree? or can I self learn? I am new to this and I feel kind of confused.
It's a confusing field to get into but most quants come from a variety of backgrounds. To start with, most quant jobs are in the US and so my advice will be more tailored to the US job market.
Quants need at minimum a quantitative masters degree or a quantitative PhD. Common areas of study are financial engineering and statistics. The focus should be on getting the required skills while getting a degree. The skills needed to be a quant are mathematics, statistics, and computer science. Depending which skill you enjoy most will help direct you into the right quant position. Quants that are more mathematical typically go into areas that work with derivative pricing. Quants that are more statistical typically go into risk management or quant research (this is where I work), and those more driven by computer science usually go into trading, tools development, or implementation. I would work on your graduate degree and decide what area you like best based on the courses you take.
Dimitri, thanks for the video. I cannot open Quant Advice Doc. Can you tell me how to download it? Thanks!
www.google.com/url?sa=t&source=web&rct=j&url=publication.tbs-education.fr/projets/pole-finance/job/doc/Becoming%2520a%2520Quant%2520by%2520Mark%2520Joshi.pdf&ved=2ahUKEwiipLWYgKrgAhUBQK0KHfyHB3IQFjABegQIBhAB&usg=AOvVaw0SVrKiUE7Y9AbhBhZ1dOCN&cshid=1549555538066
Just a quick one Dimitri , what kind of quant work in high frequency trading firm ? Are they quant developer to code the super computer that does trading ? Is the HFT market in the USA heavily regulated? there are purported instances of market rout in China and the government stepped in few years back . What are your thoughts on HFT ?
PS: sorry if my question sound stupid :) I'm an engineer working in oil field , and I have no knowledge on quant .
On a side note , don't you think quant knowledge can be use to help some airline with their fuel hedging strategy and predict oil price ? My country's national airline Singapore airline fuel hedging strategy is know to be disastrous . The pandemic makes it even worst .
People in oil and gas industry tries hard to predict oil price , but often its politics from OPEC and many places that determine prices . I'm not sure if that's quantifiable.
HFT is an interesting area. Over the years I have narrowed my thinking on the number of types of quants. But every firm needs quants to do research and do model development as well as validate those models. You need computer science experts to optimize code and set up hardware infrastructure (I usually label these jobs as implementation), and then you'll need traders to use the systems and tools built by the developers and implementation teams.
Oil and gas can be modeled. The OPEC politics do play a large role in oil prices however they typical have the same goal which is to balance the supply so they can earn some sort of target profit. The dynamics of OPEC players is interesting as well as not everyone cooperates. Another big issue is the education gap. The longer you work in any industry, you realize there really aren't many experts. Quant finance is the same but made worse by the amount of education and training needed to build solid models. Model development in my opinion is half science and half art. Crafting a stable model is a challenge in itself without considering accuracy. Balancing the two sides takes a lot of expertise.
Do Front office/desk quants need more math knowledge or programming or finance?Who are usually front office quants?
They would be more focused on the programming side as they ensure proper implementation and use by the traders.
Hey Dimitri, what are the "must have" courses to become a Quant?
I have a video on this, see link below.
ruclips.net/video/qvFYzJ8-zbQ/видео.html
Dimitri, is there such a thing as a performances delivered by the average strategy using quantitative models?
Can you clarify what you mean by "average strategy?" Are you thinking about mean reversion?
Or are you thinking of the benefits of averaging multiple quant strategies?
@@DimitriBianco Hey, thanks for answering. Despite knowing quant models and computation investing is still in its infancy and takes a ton of costs.
If there was a fund operating and taking investors, how much draw down and returns would they be making?
It's hard to say as everyone has different structures and fees. Quant funds require large amounts of capital to create profit which reduces the overall cost of running them. If your search online you can find approximations to returns and performance. Most firms keep all of this information private.
This article should give you some insight on performance in 2018. www.cnbc.com/2019/01/04/hedge-fund-returns-in-2018-the-good-the-bad-the-ugly.html
In the paper by Mark joshi 'On becoming a quant', he states 'All forms of quants spend a large amount (i.e. more than an half) their time programming'.
I'm a student of mathematics BSc going for an MFE and i'm not attracted by a coding focused job. Is It true that as a quant i'm going to spend so much time programming?
Thanks
Quants do a fair amount of coding. However it is required to explore our ideas. Most quants are functional programs though and not at an expert level such as a computer scientist.
I love your videos
Thanks!
The document link doesn't work anymore. Could you please upload a copy somewhere or message me for my email? Thanks for the video, this is the best coverage of the broader quant roles I've seen.
For some reason Mark's whole website is down. You can find the pdf at the link below. Thanks for the positive feedback on the video!
www.google.com/url?sa=t&source=web&rct=j&url=publication.tbs-education.fr/projets/pole-finance/job/doc/Becoming%2520a%2520Quant%2520by%2520Mark%2520Joshi.pdf&ved=2ahUKEwiipLWYgKrgAhUBQK0KHfyHB3IQFjABegQIBhAB&usg=AOvVaw0SVrKiUE7Y9AbhBhZ1dOCN&cshid=1549555538066
@IShortYou ThenLol That's sad. Thanks for the info.
I am currently working as an analyst in a consulting firm where i validate the clients financial pricing and risk models and have got an offer to work as a quant developer in a hedge fund…is this a good career move…..i like both the finance and programming…also is quant developer a good route to take to move to desk quant role???
It depends what you are wanting to do in the long run. If you enjoy quant dev I would take the offer. It's always possible it could lead to a front office quant job.
which type of quant utilizes the most advanced mathematics?
Those who work in exotic option creation (sell side). They are actual financial engineers in the sense that they engineer products.
As for the types of quants, research usually does more math and usually requires a PhD.
6 squant
What does a quantitative trader do?
They monitor portfolios and strategies to ensure they are performing as expected. You might like the video linked below where I interview a friend of mine who is a derivatives trader.
ruclips.net/video/z0E2ug1rfgg/видео.html
My mum being Mary quant; aka brap brap brap you're bangarang
Who's the Quantitative Trader then?
Many consider then front office. I don't consider them quants though. They are just traders at a quant fund.
Thanks a lot Fancy Quant Dimitri, very useful information. Such a shame that your friend Mark passed away a few years ago. Not sure if that info is legit, but at least that's what wiki says. If so, I'm sorry man.
Yeah it is a tragedy. I never met him but he made some great contributions to the field.
Why is he yelling at me
I never like videos. I liked yours
Thanks!
WHY IS HE SHOUTING AT US THOUGH!!!>
Speaking too loud
This guy really likes yelling, doesn't he.
Piss off