Wow I watched this video when I was just coming out of my first year of bachelors. I really want to become a quant one day so i stuck to your methodology. I’m happy to say that I’ll be starting next week as a data analyst for an asset management firm in London. Let’s see how far I can get :)
From time to time I come back to check on my path, I have just started, reviewing calculs and Taylor series and some other stuffs and I am so happy that I found a path drawn here in your channel, thank you so much
Thanks for the video, I've seen a few of yours and I will continue watching as they seem to be very helpful. I am planning to start my BS in math this fall so I am trying to soak in any info like this I can find.
Should we be more specific when we use the term quant ? Like im sure there are researcher, developer and trader ? And do each of them have different skill sets? What i heard when it comes to quant trader is that they are not expected to write a single line of code. Unless there are quants out there who hold those 3 roles simultaneously.
Yes they all require very different skills. Traders need to think fast. Quants (researchers) need to know a lot of math and stats and being able to use stats languages for research. Quant dev "developer" needs to be able to understand the basic model given to them by a quant and optimize it so a trader can use it.
Great video. Im currently a cs major/ stat minor undergrad. I am planning on continuing my education, with a masters in cs/machine learning. I fall into the category of those with limited finance knowledge. Would an online course be sufficent in bringing my finance skills up to par or is a master in FE really a neccesity?
It seems you are wanting to work in data science which is different than being a quant. Machine learning and CS are good if you want to program at a hedge fund however they will consider you a programmer and not a quant. To really become a quant you need heavy amounts of mathematics such as stochastic calculus, PDE, ODE, and advanced stats such as copulas. A good MFE should cover math, stats, computer science, and finance however the math and stats should be at a masters or PhD level. These programs are much harder than other masters programs. If you really like math and stats then chose an MFE. If you love programming then get a CS or Machine Learning masters.
Hi Dimitri, thanks for taking the time to provide this great content, I'm heading into my final year of a mathematics, computer science and finance combined degree and have had exposure to a broad range of these topics, but I have a couple questions which I think would help me to select subjects next year. (1) Would taking a course on big data mining be of much use for the potential fields a 'quant' would work in? (2) If I choose a computer science course which is a semester long group based project I can graduate with a double major in computer science and statistics, but I am considering taking a level 4 course on statistical machine learning in its place. Given I have already completed a level 3 course on artificial intelligence would this higher level knowledge be beneficial or would obtaining the double major be viewed more favourably by employers? (3) I have had brief exposure to PDE's in a second year course I did on DE's, but I have forgotten a great deal of what I have learned since then. To what level should I try to self teach myself on these topics to be up to standard as I don't have room to take a PDE's course next year. (4) Do you think the qualifications I'll have in a years time will be enough to break into the industry as a 'quant' considering I will have all of this base knowledge covered? Thanks again!
First off a masters is usually a minimum requirement so I will assume you are working on a masters. If you are working on an undergrad it is possible to get a job as a quant...usually doing programming for hedge funds. 1) Big data is popular in some areas of quant finance. I currently work in credit risk and usually work with data that has over 1mill observations. I've even seen a final data set that was 100Gb. 2) This is a tough decision. Personally I would take the last CS class and get the double major. You'll always have the double major to list on your resume which will make finding a job easier. That and you can always take a free Coursera on machine learning. 3) Typically PDEs are only used in options pricing. Most people don't work in options pricing so I wouldn't worry too much about learning PDEs. There are always other topics you'll want to learn more about however getting the degree is the most important for getting the first job. After graduation I have spent a lot of time reading and learning as there are an infinite number of quant topics. 4) Like I mentioned at the beginning, I'm not sure if you are working on a masters or undergrad degree. If you are working on an undergrad degree it is possible to get a job being a quant but very rare. In that case I would recommend applying to grad school and getting a masters. If you are currently working on a masters degree then you should have most of the base topics however depending on what university you went to will effect how easy it will be to get a job. Overall being a quant is a continual process. I've been in the banking sector for a few years now and am still trying to learn everyday.
Excellent Video Dimitri. You mentioned that you are into model validation, would it be possible to share / make a video on AtoZ of model validation by taking an example of one model on risk side may be?
With regards to the Computer science requirements like the stats and programming languages, how would I go about meeting these requirements? Would I just look at books which involve learning Finance in relation to R for example? In a real world setting what would you need these languages for?
Traditional finance typically uses Excel to do financial "models" however I don't really consider these models as they are more like calculations. For quantitative finance we use statistical models for pricing assets, measuring risk, and decision making. Using R, SAS, or another stats language is the main tool to build these statistics models. I work in risk management and the majority of my job is working with statistics theory and programming in SAS or R. Pure programming languages such as C, C++, and Python are used for model implementation. For example, a model might be built in SAS however a bank might want to implement it in C++ for increased speed. Speed is necessary for a few reasons. 1. If you are doing high frequency trading, you want to be the first one to place your order. 2. Some models can take days to run due to the size of data (100gb+) and the complexity of the model. If a bank is trying to make a decision they might need results within a few hours. So having the model optimized in C++ would be more practical. Programming skills can be learned through school, books, and online resources. For me I prefer learning through a project. I usually encourage people to try and model a specific set of data. For example, model a stock price with macro economic data from the Federal Reserve (US---free online).
Thank you, I appreciate it! I'm currently finishing a Master of Commerce (Finance Major) as we speak, with two elective units left and was thinking of doing some more mathematic and computer science based units. One of them is called Multivariate and Categorical Data Analysis which involves Bayesian techniques using R and utilises the Pattern Recognition and Machine Learning (Chris Bishop) textbook. The other is a straight forward Econometrics unit where we learn basic OLS, unit-root testing, GARCH, ARCH etc. from the Principles of Econometrics (R. Carter Hill et. al) textbook which I have done before in my undergraduate degree. The only issue is that the unit uses EViews to compute the data, which I don't believe is used anymore in a real-world setting, so not sure if the unit is worth it. Another alternative for that unit was one which involves learning the basics of C#, which from what I've heard, is very similar to learning Java? What do you think? EDIT: There's also a Machine Learning unit which involves using Python and covers topics such as clustering, K+ means, K++ means, Neural Networks, Bootstrap Aggregation etc. and uses the same Bishop textbook.
Jered I'd do the class with R and Bishop's book. Time series as a topic is very interesting and the topics can go very deep. If you feel the class will cover the same depth as an undergrad I'd take something else. Time series is actually my specialty in the risk world.
hey dimitri how yow you doing so far ? hope its going well . first of all i would to thank you for your videos as it helped and saved a lot of time for me and i am sure for many others . well i would like to know your advice for me as i am a business student and majoring finance and i want to be a quant but in my university they don/t give us the good math you mentioned so shall i start my bachelor again in the states as my bachelor from egypt and my gpa will not help for getting a masters in financial engineering . really appreciate your help
I would finish your current degree but try to take math or statistics as electives. Another option would be to consider a dual major at your current university. US degrees hold more weight but if you've already invested a few years into an undergraduate degree I would finish it. Most quant programs are mainly non-US students so you should be fine as long as you take a few more quantitative courses on top of your business degree.
Thank you for the video. You said at the beginning that you're not becoming quant, rather it's a repetitive process of learning. I have few years experience as a programmer in C++ and Python and I hold BSc and 2 MScs. Neither is quantitative related. So if I do MSc financial engineering or quantitative finance, will employers not give me the opportunity to work as quant since I have not done that previously? In other words, do they want graduates fresh from university in their 20s? Thank you
I have a more detailed video on it which I'll link below but no you don't need work experience. My statement is pointing out that being a quant is a journey not a destination. Many people think if they get a degree or a job that somehow they are done. They now they will all of a sudden be smart and make a lot of money. This isn't true though. The more experience you gain you realize you have even more to learn. Also more money comes with more experience. ruclips.net/video/j59p8E3mOvw/видео.html
Thank you. Valuable video. I guess my dilemma is my age. You said the best thing would be to go from undergraduate to graduate because later companies will want you to build your expertise into statistics, mathematics, modelling, computer science, sleeping, chewing and dreaming mathematics. I don't know if I go now and do a 3rd MSc at 47 (which means I'll get it toward 50), if any employer will appreciate it... Have you ever seen 'older' candidates as quants? I'm getting the impression I will compete with candidates 20 years younger than me. Are there other roles which quantitative finance can open doors to when I have programming experience? Or will 3rd MSc come across as 'desperate' or 'unfocused'? My other MScs are in advanced information systems and cloud computing. Thank you
Hey I know you uploaded this a long time ago, but wondering if I have a chance at breaking in in your opinion? I’m by no means a genius, but I just finished my first semester in my bachelors in mathematical finance, and got a 4.0 with a 97% in calculus 2. Obviously this isn’t a full proof indication of anything, but can I break in with enough hard work even if I’m not necessarily a rocket scientist level math student? Thanks!
Yes. Most quants in the industry aren't rock stars or super geniuses. They are people who enjoy doing math, stats, programming, and finance. Many get a good job and stay at it for many years as the pay is good and the work is interesting. Not everyone wants to climb the crazy corporate ladder of quant finance.
The best way is to get a solid base through a Masters or PhD and then continue to add new topics and depth of each topic through textbooks. I use online materials to support my textbook reading however there is a TON of incorrect information on the internet. I do book reviews on this channel and also have a quant reading list. ruclips.net/video/pOThNItNuqE/видео.html
@@DimitriBianco You talk as if one can quickly get a phd 🤣. On a serious note, is getting a phd a requirement, im currently doing a bachelors in CS and planning on doing a Masters in FE. But i would seriously consider changing career path if i dont have a reasonable chance with a masters (my initial plan would have been just a bachelors with a lot of internship experience) Thanks for your answer
Would more advanced forms of technical analysis be included as an input in a Quantitative model. I'm trying to understand the boundaries between the two approaches. For instance if i have tested and validated a certain indicator or technical trading system using proper methods of testing (in sample , out of sample data, Walk forward analysis ) could that then be implemented and integrated into a quant model alongside various other indicators such as Macro indicators and Sentiment.
Hey Dimitri thanks for the video. Do u think knowledge of all these topics is necessary for Financial Risk Management? Do you have to be a quant to work in risk management?
Yes these topics are necessary for financial risk management. Being a quant is not required to be a risk manager however in the US and many other places, a Masters of PhD is required. I personally prefer candidates with a statistics background or a financial engineering background.
Hi Dimitri, great video, all interesting and informative. I am currently taking a Finance, Investment and risk degree at university which has heavy focus on some of the mathematical and statistical methods you mentioned. Unfortunately I do not have a perfect academic record due to extenuating circumstances but for my degree I am on-track to get a first class(4.0 gpa equivalent), with hope in doing a masters in computational finance. With hard work is it possible to get into quant trading/research at a smaller fund with this background? Thanks for the help.
Yes, it is possible. Getting into these areas is challenging in general and career development is usually non existent but really worth it if you can break in.
Solid video. I just read your conversation with a commentator who has a similar background to me except I’m a double major Math and Bio. I have programming classes such as MatLab. I’ve also taken 10-week course on Python where I learned a ton. You recommend that he go for grad school. Specifically which type of grad school would you recommend? I see myself doing quantitative analysis for a hedge fund company or banking industry.
Hi Dimitri, Do you have an update or additional suggestions/insights for this topic as of 2022, after gaining 5 more years of experience? I have a BA in economics and accounting (CPA, unfortunately), and is currently about to start MA in data science, which is heavy in stats. Just want to make sure my curriculum includes all the needed subjects. Also, I am more inclined to quantitative algorithmic trading than exotic instruments engineering and pricing. Thank you for your videos, they help a lot, Random internet stranger.
Is a master's degree in Artificial Intelligence a good way for becoming a Quant ? How would you compare it to the MFE program in terms of suitability ?
This is a tough question. First off I will assume the AI degree is within a computer science (CS) program at a good university such as CMU, Stanford, or MIT. If your goal is to write code for a hedge fund or trading desk an AI degree would be a good fit because you will be good at coding and AI is starting to become more common in hedge funds and trading firms. The whole banking industry will slowly adapt to AI but it will take more time. The down side of an CS degree focused in AI is that you most likely won't get the amount of math, stats, or finance that an MFE degree will get. There are many paths to becoming a quant and CS and AI is one path. When comparing a top MFE to a top CS/AI I think the MFE is better. The MFE will cover a broader range of quant topics in greater depth. If you really like programming and want to program in a quant setting than the CS/AI would be a better fit. If you want to work more on pricing, research, or model development I think the MFE will be better.
Hi, I have been following your videos for a while as I'm planning to become a quant. However my major in university was economics. I am planning to enroll in the CQF program offered by Fitch learning. Do you have any review about the program? Any answer would help, thanks a lot :)
I don't have a video on this but this question has been asked before. I do like Paul Wilmott who founded the program and feel they do go into depth on financial engineering topics however my concern is that the program is only 6 months. If it is compared to a financial engineering masters at a top university it will lack a lot of material as these programs spend 1.5 - 2 years educating. If I were you I would consider the program as it has a good reputation however I would also consider applying to top university programs such as the ones listed on quantnet.com.
Dimitri Bianco thanks a lot! I'm in Vietnam where this field is relatively new and employers do not require a MFE to be eligible but I think I will go for one after the Cqf, so that I'm able to work in a foreign country
Hi Dimitri Bianco, Is a master's degree in Financial Risk Management sufficient to be a quant. I am currently taking this degree with electives such as applied computational finance ( C++ and Python) , math for algorithmic and high frequency trading (using stochastic optimal control), Equities ,FX , commodities modelling and financial engineering which are offered by math department. the compulsory modules include portfolio thoery and risk measures, statistics and stochastic processes. All modules offered by my university are quite quantitative.
I am masters student student in physics. I have decided to leave academia but I want to continue doing math and solving problems. In fact I have learnt stochastic calculus for statistical physics and I can code(as of now just the basics, but i can learn quickly) Quantitative finance seems like a dream however I have no industry experience.any idea how i can actually land an internship as a quant and eventually get taken seriously?
Do u think that is necessary to see some topics of economy like microeconomy or macroeconomy rather topics of math? Whats the importance of economics topics to be a quant?
Yes I do think it is necessary to understand economics to be a quant however it is not required. Almost everything we do is economics related and is taught to some extent in masters programs. Economics overlaps with finance, mathematics, statistics, and programming. Some topics: Supply and Demand Interest Rate Dynamics in Markets Econometrics (matrix algebra, linear regression, time-series, and almost any other econometrics topic) Numerical Methods and Optimization
I am going to study Economics at university soon.I would like to be a quant.From some of the quant funds' website, like Citadel, they require applicants to have a degree in highly quantitative fields, such as Physics, Stat, Math and Computer Science, but no Economics. I have experience in programming in Python without any qualification stuffs.It is obviously not enough to convince the recruiters. How should I prepare myself for a quant career?Would it be useful to take as many Econometrics courses as I can to be considered as capable of "highly quantitative works"?
Patrick firms like Citadel require a PhD as a minimum but I'm not a fan of this. Many other good firms require a master's degree which is reasonable. As for economics, yes it is possible to have an economics background and be a quant. I personally have an applied economics master's and many of my colleagues have PhDs in econometrics. A general econ degree could lack rigor but it really depends on the programs.
I am a recent Mathematics graduate who is really interested in getting involved in quant analytics. Is there any literature you could recommend that I could start learning to help me with this process?
Below are a few videos that cover this in more details. My time-series video are also a good starting point. Best Free Math, Stats, and Financial Engineering Resources ruclips.net/video/_1c1UrAWXwU/видео.html Quant Reading List 2019 | Math, Stats, CS, Data Science, Finance, Soft Skills, Economics, Business ruclips.net/video/pOThNItNuqE/видео.html Time-Series ruclips.net/p/PLBfqPS8Xvt2D2pagOjSEkQYCcn_8X-vzg
Hi dimitri, I’m currently doing my undergrad in finance and economics, I’m considering taking the quantitative finance route for my early career, I already took mathematical economics and econometrics modules. I have the options to go further with time series econometrics and financial econometrics route or to take the financial derivatives and engineering pathway (with both pathways complemented by a mathematical finance module), which one would be more appropriate and useful to lower my bar to get into a quant role?
I don't think it will matter much either way but you'll need a masters to get into quant finance. If you want to work get an analytical job in finance (non quant) without a masters I would go with econometrics.
hey dimitri, I have a bachelor's in business economics and an associate's degree in accounting. I'm also studying for CFA level 1. I know this isn't enough to become a quant because it looks like I need more advanced math and programming skills. what should I do to build this skillset to become a quant? should I get a masters in financial engineering? could I just take community college courses in the necessary subjects like linear algebra or python, etc.?
It depends on what your goals are and what country you want to work in. In the US it's very competitive and a masters is a minimum. I would consider a variety if masters degrees though such as statistics and financial engineering/ quantitative finance. In some small countries it's possible to do quantitative finance without a degree however it's rare to cover all the material you would cover in a well put together masters or PhD.
It depends where you are located. The countries with a lot of quant jobs will require masters in something quantitative such as statistics, math, engineering, or quantitative finance. There aren't too many ways to work in another position and switch over. Even for hiring directors we look at their education from 15+ years ago.
It depends how you define a quant. Some consider guys coding as quants however I view these as CS people and not quants. Quants should be defined as those applying scientific methods (math and statistics through programming) to finance. I would review the CS masters and see if the topics I mention in this video are taught. My guess is that it would be lacking a lot of statistics.
@@DimitriBianco thx... right know im doing computational finance and algorthmic trading as my personal project, wish me luck .and keep up the good work sir!
Take up related math classes to cover the topics mentioned in the video. Minor in Finance/Ecnomics. Intern as a quantitative researcher/trader at either bulge bracket or hedge funds.
Unfortunately I haven't found online courses that go very deep into quant topics. Perhaps some of the subscribers on here might know of a few but all of my learning outside of school as been through books and RUclips. One of the goals of this channel is to teach these topics such as time-series and neural networks. I do have a video on a bunch of books by topic. ruclips.net/video/pOThNItNuqE/видео.html
It's not likely as you are missing many of the base skills in mathematics (I assume). You would have to be able to show the skills you have that are needed in the quant space
@@DimitriBianco Thank you for your answer! After I commented just realised its a 7 years old video so I really appreciate your answer. Yes I trying to learn math, statistics more. I will start my Math Bsc in September.
I have a Masters in Financial Maths from one of the top 10 universities in the world. I graduated in 2019 and I've been applying for Quant positions for 3 years. In the past 3 years, I've attended 30 if not 40 final stage interviews but nothing came to fruition. I feel like I'm the only exception in my Masters class. Do you think the interviewers have biased opinions toward those great but not genius graduates? If not why do I continue to fail? How many more years do I have to endure to get that entry level job? I feel like I have a little bit Aspergers, with a tested IQ of 132. Can I still have a shot?
Finding the reason for why you aren't getting a final offer will be challenging but the only real solution. Often the final interview is decided on how you would fit a specific team (think culture and soft skills) and not as much of the technical side. The industry wants bright people but also people who are easy to work with and fit their specific team. Every company has a different culture though so it can be a challenging process.
How do you expect these to change? Will AI ever be better than people at the statistics portion? Will everyone in this field who isn’t an AI Genius be out of a job in 5-10 years? Lol just curious I’m nowhere near being a quant and completely ignorant.
That's actually a good question. No, I don't think AI will take over model development or statistics as a whole. AI models do very well with non linear relationship however traditional statistics outperform AI in linear space. There is also a lack of understanding of the relationships between cause and effect which is important to a lot of businesses. I do think we'll eventually find ways to extract these relationships from AI but it will take some time. I view AI as a new layer of tools to solve problems we weren't able to solve in the past but traditional statistics is still needed.
Would a Finance major with a math minor be good to break into Quant finance? I don’t want to be someone who codes rather the person who’s actually implementing quant methods. I do not really want to take CS in college but I am starting to realize that it’s very important to atleast have some cs knowledge. Any suggestions ?
Wow I watched this video when I was just coming out of my first year of bachelors. I really want to become a quant one day so i stuck to your methodology.
I’m happy to say that I’ll be starting next week as a data analyst for an asset management firm in London.
Let’s see how far I can get :)
Congrats on the data analyst job!
From time to time I come back to check on my path, I have just started, reviewing calculs and Taylor series and some other stuffs and I am so happy that I found a path drawn here in your channel, thank you so much
Hey Nico, how's your path been? Starting now myself, just wondering :)
Also interrelated on your path, how’s its going?
@@dissociate_dThat’s a One Piece character
Been working as a quant in asset management. Good video to quickly divide/structure your prep especially when you're looking to switch jobs!
100% the best quant channel out there!
Thanks!
Thanks for the video, I've seen a few of yours and I will continue watching as they seem to be very helpful. I am planning to start my BS in math this fall so I am trying to soak in any info like this I can find.
Chuck Earnest thanks for watching!
I would like to say your video is incredible and helpful! Thank you!
Should we be more specific when we use the term quant ? Like im sure there are researcher, developer and trader ? And do each of them have different skill sets? What i heard when it comes to quant trader is that they are not expected to write a single line of code. Unless there are quants out there who hold those 3 roles simultaneously.
Yes they all require very different skills. Traders need to think fast. Quants (researchers) need to know a lot of math and stats and being able to use stats languages for research. Quant dev "developer" needs to be able to understand the basic model given to them by a quant and optimize it so a trader can use it.
Hey Dimitri under Computer Science, what books do you recommend for matlab SPSS ,R ,python , Sas and machine learning?
Great video.
Im currently a cs major/ stat minor undergrad. I am planning on continuing my education, with a masters in cs/machine learning. I fall into the category of those with limited finance knowledge. Would an online course be sufficent in bringing my finance skills up to par or is a master in FE really a neccesity?
It seems you are wanting to work in data science which is different than being a quant. Machine learning and CS are good if you want to program at a hedge fund however they will consider you a programmer and not a quant. To really become a quant you need heavy amounts of mathematics such as stochastic calculus, PDE, ODE, and advanced stats such as copulas. A good MFE should cover math, stats, computer science, and finance however the math and stats should be at a masters or PhD level. These programs are much harder than other masters programs. If you really like math and stats then chose an MFE. If you love programming then get a CS or Machine Learning masters.
Your videos are really helpful. Thanks.
Hi Dimitri, thanks for taking the time to provide this great content,
I'm heading into my final year of a mathematics, computer science and finance combined degree and have had exposure to a broad range of these topics, but I have a couple questions which I think would help me to select subjects next year.
(1) Would taking a course on big data mining be of much use for the potential fields a 'quant' would work in?
(2) If I choose a computer science course which is a semester long group based project I can graduate with a double major in computer science and statistics, but I am considering taking a level 4 course on statistical machine learning in its place. Given I have already completed a level 3 course on artificial intelligence would this higher level knowledge be beneficial or would obtaining the double major be viewed more favourably by employers?
(3) I have had brief exposure to PDE's in a second year course I did on DE's, but I have forgotten a great deal of what I have learned since then. To what level should I try to self teach myself on these topics to be up to standard as I don't have room to take a PDE's course next year.
(4) Do you think the qualifications I'll have in a years time will be enough to break into the industry as a 'quant' considering I will have all of this base knowledge covered?
Thanks again!
First off a masters is usually a minimum requirement so I will assume you are working on a masters. If you are working on an undergrad it is possible to get a job as a quant...usually doing programming for hedge funds.
1) Big data is popular in some areas of quant finance. I currently work in credit risk and usually work with data that has over 1mill observations. I've even seen a final data set that was 100Gb.
2) This is a tough decision. Personally I would take the last CS class and get the double major. You'll always have the double major to list on your resume which will make finding a job easier. That and you can always take a free Coursera on machine learning.
3) Typically PDEs are only used in options pricing. Most people don't work in options pricing so I wouldn't worry too much about learning PDEs. There are always other topics you'll want to learn more about however getting the degree is the most important for getting the first job. After graduation I have spent a lot of time reading and learning as there are an infinite number of quant topics.
4) Like I mentioned at the beginning, I'm not sure if you are working on a masters or undergrad degree. If you are working on an undergrad degree it is possible to get a job being a quant but very rare. In that case I would recommend applying to grad school and getting a masters. If you are currently working on a masters degree then you should have most of the base topics however depending on what university you went to will effect how easy it will be to get a job. Overall being a quant is a continual process. I've been in the banking sector for a few years now and am still trying to learn everyday.
Its not a destination, but a journey....
Excellent Video Dimitri. You mentioned that you are into model validation, would it be possible to share / make a video on AtoZ of model validation by taking an example of one model on risk side may be?
I will consider that. If I do a validation example video it will most likely be a part of the time series videos I've been making.
@@DimitriBianco thank you Dimitri...kindly continue enlightening us...
As a quantitative trader, are you likely to get fired if you aren’t performing? I’d imagine it makes it stressful?
Had the same question
Extremely informative video!
Thanks
Well, I didn't know I was a quant as I have been doing all this in my room
A very good summary, Thank you for the video
+tsing yang thanks for watching!
With regards to the Computer science requirements like the stats and programming languages, how would I go about meeting these requirements? Would I just look at books which involve learning Finance in relation to R for example? In a real world setting what would you need these languages for?
Traditional finance typically uses Excel to do financial "models" however I don't really consider these models as they are more like calculations. For quantitative finance we use statistical models for pricing assets, measuring risk, and decision making. Using R, SAS, or another stats language is the main tool to build these statistics models. I work in risk management and the majority of my job is working with statistics theory and programming in SAS or R.
Pure programming languages such as C, C++, and Python are used for model implementation. For example, a model might be built in SAS however a bank might want to implement it in C++ for increased speed. Speed is necessary for a few reasons.
1. If you are doing high frequency trading, you want to be the first one to place your order.
2. Some models can take days to run due to the size of data (100gb+) and the complexity of the model. If a bank is trying to make a decision they might need results within a few hours. So having the model optimized in C++ would be more practical.
Programming skills can be learned through school, books, and online resources. For me I prefer learning through a project. I usually encourage people to try and model a specific set of data. For example, model a stock price with macro economic data from the Federal Reserve (US---free online).
You might like this book:
www.amazon.com/Statistical-Analysis-Financial-Springer-Statistics/dp/1461487870
Thank you, I appreciate it! I'm currently finishing a Master of Commerce (Finance Major) as we speak, with two elective units left and was thinking of doing some more mathematic and computer science based units. One of them is called Multivariate and Categorical Data Analysis which involves Bayesian techniques using R and utilises the Pattern Recognition and Machine Learning (Chris Bishop) textbook. The other is a straight forward Econometrics unit where we learn basic OLS, unit-root testing, GARCH, ARCH etc. from the Principles of Econometrics (R. Carter Hill et. al) textbook which I have done before in my undergraduate degree. The only issue is that the unit uses EViews to compute the data, which I don't believe is used anymore in a real-world setting, so not sure if the unit is worth it. Another alternative for that unit was one which involves learning the basics of C#, which from what I've heard, is very similar to learning Java?
What do you think?
EDIT: There's also a Machine Learning unit which involves using Python and covers topics such as clustering, K+ means, K++ means, Neural Networks, Bootstrap Aggregation etc. and uses the same Bishop textbook.
Jered I'd do the class with R and Bishop's book. Time series as a topic is very interesting and the topics can go very deep. If you feel the class will cover the same depth as an undergrad I'd take something else. Time series is actually my specialty in the risk world.
hey dimitri how yow you doing so far ? hope its going well . first of all i would to thank you for your videos as it helped and saved a lot of time for me and i am sure for many others . well i would like to know your advice for me as i am a business student and majoring finance and i want to be a quant but in my university they don/t give us the good math you mentioned so shall i start my bachelor again in the states as my bachelor from egypt and my gpa will not help for getting a masters in financial engineering . really appreciate your help
I would finish your current degree but try to take math or statistics as electives. Another option would be to consider a dual major at your current university. US degrees hold more weight but if you've already invested a few years into an undergraduate degree I would finish it. Most quant programs are mainly non-US students so you should be fine as long as you take a few more quantitative courses on top of your business degree.
Thank you for the video.
You said at the beginning that you're not becoming quant, rather it's a repetitive process of learning.
I have few years experience as a programmer in C++ and Python and I hold BSc and 2 MScs.
Neither is quantitative related.
So if I do MSc financial engineering or quantitative finance, will employers not give me the opportunity to work as quant since I have not done that previously?
In other words, do they want graduates fresh from university in their 20s?
Thank you
I have a more detailed video on it which I'll link below but no you don't need work experience. My statement is pointing out that being a quant is a journey not a destination. Many people think if they get a degree or a job that somehow they are done. They now they will all of a sudden be smart and make a lot of money. This isn't true though. The more experience you gain you realize you have even more to learn. Also more money comes with more experience.
ruclips.net/video/j59p8E3mOvw/видео.html
Thank you. Valuable video.
I guess my dilemma is my age. You said the best thing would be to go from undergraduate to graduate because later companies will want you to build your expertise into statistics, mathematics, modelling, computer science, sleeping, chewing and dreaming mathematics.
I don't know if I go now and do a 3rd MSc at 47 (which means I'll get it toward 50), if any employer will appreciate it...
Have you ever seen 'older' candidates as quants? I'm getting the impression I will compete with candidates 20 years younger than me.
Are there other roles which quantitative finance can open doors to when I have programming experience?
Or will 3rd MSc come across as 'desperate' or 'unfocused'?
My other MScs are in advanced information systems and cloud computing.
Thank you
Hey I know you uploaded this a long time ago, but wondering if I have a chance at breaking in in your opinion? I’m by no means a genius, but I just finished my first semester in my bachelors in mathematical finance, and got a 4.0 with a 97% in calculus 2. Obviously this isn’t a full proof indication of anything, but can I break in with enough hard work even if I’m not necessarily a rocket scientist level math student? Thanks!
Yes. Most quants in the industry aren't rock stars or super geniuses. They are people who enjoy doing math, stats, programming, and finance. Many get a good job and stay at it for many years as the pay is good and the work is interesting. Not everyone wants to climb the crazy corporate ladder of quant finance.
Hey Dimitri great video! How would you suggest to go about learning these topics, do you have any recommended resources?
The best way is to get a solid base through a Masters or PhD and then continue to add new topics and depth of each topic through textbooks. I use online materials to support my textbook reading however there is a TON of incorrect information on the internet.
I do book reviews on this channel and also have a quant reading list.
ruclips.net/video/pOThNItNuqE/видео.html
@@DimitriBianco You talk as if one can quickly get a phd 🤣. On a serious note, is getting a phd a requirement, im currently doing a bachelors in CS and planning on doing a Masters in FE. But i would seriously consider changing career path if i dont have a reasonable chance with a masters (my initial plan would have been just a bachelors with a lot of internship experience) Thanks for your answer
Would more advanced forms of technical analysis be included as an input in a Quantitative model. I'm trying to understand the boundaries between the two approaches. For instance if i have tested and validated a certain indicator or technical trading system using proper methods of testing (in sample , out of sample data, Walk forward analysis ) could that then be implemented and integrated into a quant model alongside various other indicators such as Macro indicators and Sentiment.
Hey Dimitri thanks for the video. Do u think knowledge of all these topics is necessary for Financial Risk Management? Do you have to be a quant to work in risk management?
Yes these topics are necessary for financial risk management. Being a quant is not required to be a risk manager however in the US and many other places, a Masters of PhD is required. I personally prefer candidates with a statistics background or a financial engineering background.
Hi Dimitri, great video, all interesting and informative. I am currently taking a Finance, Investment and risk degree at university which has heavy focus on some of the mathematical and statistical methods you mentioned. Unfortunately I do not have a perfect academic record due to extenuating circumstances but for my degree I am on-track to get a first class(4.0 gpa equivalent), with hope in doing a masters in computational finance. With hard work is it possible to get into quant trading/research at a smaller fund with this background? Thanks for the help.
FYI the masters would be at UCL so quite reputable.
Yes, it is possible. Getting into these areas is challenging in general and career development is usually non existent but really worth it if you can break in.
Solid video. I just read your conversation with a commentator who has a similar background to me except I’m a double major Math and Bio. I have programming classes such as MatLab. I’ve also taken 10-week course on Python where I learned a ton. You recommend that he go for grad school. Specifically which type of grad school would you recommend? I see myself doing quantitative analysis for a hedge fund company or banking industry.
Thank you so much
Hi Dimitri,
Do you have an update or additional suggestions/insights for this topic as of 2022, after gaining 5 more years of experience?
I have a BA in economics and accounting (CPA, unfortunately), and is currently about to start MA in data science, which is heavy in stats. Just want to make sure my curriculum includes all the needed subjects. Also, I am more inclined to quantitative algorithmic trading than exotic instruments engineering and pricing.
Thank you for your videos, they help a lot,
Random internet stranger.
If you're wanting to be a quant then why would you go for a masters in data science? Just curious.
Did you start trading after getting your degree? I assume you can trade and make money on your own while looking for a job?
Dude, it would take years to learn all this stuff!
Yes........
It does. That’s why being a quant is such a high paying and prestigious profession.
Brilliant video！！！
Is a master's degree in Artificial Intelligence a good way for becoming a Quant ? How would you compare it to the MFE program in terms of suitability ?
This is a tough question. First off I will assume the AI degree is within a computer science (CS) program at a good university such as CMU, Stanford, or MIT. If your goal is to write code for a hedge fund or trading desk an AI degree would be a good fit because you will be good at coding and AI is starting to become more common in hedge funds and trading firms. The whole banking industry will slowly adapt to AI but it will take more time. The down side of an CS degree focused in AI is that you most likely won't get the amount of math, stats, or finance that an MFE degree will get.
There are many paths to becoming a quant and CS and AI is one path. When comparing a top MFE to a top CS/AI I think the MFE is better. The MFE will cover a broader range of quant topics in greater depth. If you really like programming and want to program in a quant setting than the CS/AI would be a better fit. If you want to work more on pricing, research, or model development I think the MFE will be better.
Thank you for the specific and informative answer. Keep up the good work ! ;)
Hi, I have been following your videos for a while as I'm planning to become a quant. However my major in university was economics. I am planning to enroll in the CQF program offered by Fitch learning. Do you have any review about the program? Any answer would help, thanks a lot :)
I don't have a video on this but this question has been asked before. I do like Paul Wilmott who founded the program and feel they do go into depth on financial engineering topics however my concern is that the program is only 6 months. If it is compared to a financial engineering masters at a top university it will lack a lot of material as these programs spend 1.5 - 2 years educating. If I were you I would consider the program as it has a good reputation however I would also consider applying to top university programs such as the ones listed on quantnet.com.
Dimitri Bianco thanks a lot! I'm in Vietnam where this field is relatively new and employers do not require a MFE to be eligible but I think I will go for one after the Cqf, so that I'm able to work in a foreign country
I'm majoring in finance and minor in stats. I'm almost done. My question is, should I get masters in stats or finance to be a quant
malik awan stats
I work in risk management and almost 100% of my job is stats. It is very versatile.
Dimitri Bianco thanks a lot
malik awan no problem. Thanks for subscribing!
Hi Dimitri Bianco, Is a master's degree in Financial Risk Management sufficient to be a quant. I am currently taking this degree with electives such as applied computational finance ( C++ and Python) , math for algorithmic and high frequency trading (using stochastic optimal control), Equities ,FX , commodities modelling and financial engineering which are offered by math department. the compulsory modules include portfolio thoery and risk measures, statistics and stochastic processes. All modules offered by my university are quite quantitative.
Jang Hyuk that sounds like a great program and should be good for preparing you to be a quant.
I am masters student student in physics. I have decided to leave academia but I want to continue doing math and solving problems.
In fact I have learnt stochastic calculus for statistical physics and I can code(as of now just the basics, but i can learn quickly)
Quantitative finance seems like a dream however I have no industry experience.any idea how i can actually land an internship as a quant and eventually get taken seriously?
That's the main question - how to land an internship. Especially if one is not from a top ranked/ well known University.
Do u think that is necessary to see some topics of economy like microeconomy or macroeconomy rather topics of math? Whats the importance of economics topics to be a quant?
Yes I do think it is necessary to understand economics to be a quant however it is not required. Almost everything we do is economics related and is taught to some extent in masters programs. Economics overlaps with finance, mathematics, statistics, and programming.
Some topics:
Supply and Demand
Interest Rate Dynamics in Markets
Econometrics (matrix algebra, linear regression, time-series, and almost any other econometrics topic)
Numerical Methods and Optimization
I am going to study Economics at university soon.I would like to be a quant.From some of the quant funds' website, like Citadel, they require applicants to have a degree in highly quantitative fields, such as Physics, Stat, Math and Computer Science, but no Economics.
I have experience in programming in Python without any qualification stuffs.It is obviously not enough to convince the recruiters.
How should I prepare myself for a quant career?Would it be useful to take as many Econometrics courses as I can to be considered as capable of "highly quantitative works"?
Patrick firms like Citadel require a PhD as a minimum but I'm not a fan of this. Many other good firms require a master's degree which is reasonable. As for economics, yes it is possible to have an economics background and be a quant. I personally have an applied economics master's and many of my colleagues have PhDs in econometrics. A general econ degree could lack rigor but it really depends on the programs.
Very good bro nice very helpful
I am a recent Mathematics graduate who is really interested in getting involved in quant analytics. Is there any literature you could recommend that I could start learning to help me with this process?
Hey Dimitri! What resources online or books would you recommend for learning the topics in Math, Stats, and Finance as mentioned in this video?
Below are a few videos that cover this in more details. My time-series video are also a good starting point.
Best Free Math, Stats, and Financial Engineering Resources
ruclips.net/video/_1c1UrAWXwU/видео.html
Quant Reading List 2019 | Math, Stats, CS, Data Science, Finance, Soft Skills, Economics, Business
ruclips.net/video/pOThNItNuqE/видео.html
Time-Series
ruclips.net/p/PLBfqPS8Xvt2D2pagOjSEkQYCcn_8X-vzg
@@DimitriBianco Thank you so much. I'll check them out.
Some quants say technical analysis doesn’t work, does it?
Hi dimitri, I’m currently doing my undergrad in finance and economics, I’m considering taking the quantitative finance route for my early career, I already took mathematical economics and econometrics modules. I have the options to go further with time series econometrics and financial econometrics route or to take the financial derivatives and engineering pathway (with both pathways complemented by a mathematical finance module), which one would be more appropriate and useful to lower my bar to get into a quant role?
I don't think it will matter much either way but you'll need a masters to get into quant finance. If you want to work get an analytical job in finance (non quant) without a masters I would go with econometrics.
hey dimitri, I have a bachelor's in business economics and an associate's degree in accounting. I'm also studying for CFA level 1. I know this isn't enough to become a quant because it looks like I need more advanced math and programming skills. what should I do to build this skillset to become a quant? should I get a masters in financial engineering? could I just take community college courses in the necessary subjects like linear algebra or python, etc.?
It depends on what your goals are and what country you want to work in. In the US it's very competitive and a masters is a minimum. I would consider a variety if masters degrees though such as statistics and financial engineering/ quantitative finance. In some small countries it's possible to do quantitative finance without a degree however it's rare to cover all the material you would cover in a well put together masters or PhD.
Good morning. Which profession are more closer to be a quant or which professional way can help me to become a quant?
It depends where you are located. The countries with a lot of quant jobs will require masters in something quantitative such as statistics, math, engineering, or quantitative finance. There aren't too many ways to work in another position and switch over. Even for hiring directors we look at their education from 15+ years ago.
Do math Ph.Ds with no background in finance get jobs as quants? Are you expected to learn something about finance before starting a quant job?
It is possible and happens however knowing some finance helps during the interview process.
Im majoring in math and planning to take master degree in cs, is it good route to be a quant?
It depends how you define a quant. Some consider guys coding as quants however I view these as CS people and not quants. Quants should be defined as those applying scientific methods (math and statistics through programming) to finance. I would review the CS masters and see if the topics I mention in this video are taught. My guess is that it would be lacking a lot of statistics.
@@DimitriBianco thx... right know im doing computational finance and algorthmic trading as my personal project, wish me luck .and keep up the good work sir!
What do you suggest for a software engineering student to follow as a path to become a quant? Which internships & skills should I focus on?
Take up related math classes to cover the topics mentioned in the video. Minor in Finance/Ecnomics. Intern as a quantitative researcher/trader at either bulge bracket or hedge funds.
@@aaryanmehta4609 thank you so much!!!🙏🏻
I agree this is a good path.
Someone could tell me what books are best for stats topics? Thank u!
I would start with this book.
ruclips.net/video/uK8ZmKWnBuQ/видео.html
can you please give some online courses link for more information
Unfortunately I haven't found online courses that go very deep into quant topics. Perhaps some of the subscribers on here might know of a few but all of my learning outside of school as been through books and RUclips. One of the goals of this channel is to teach these topics such as time-series and neural networks.
I do have a video on a bunch of books by topic.
ruclips.net/video/pOThNItNuqE/видео.html
@@DimitriBianco thanks for your help!
I'm 31 years old webdeveloper. Is it possible to transform to Quant? I have a degree in Business and Management and 10 years webdev experience.
It's not likely as you are missing many of the base skills in mathematics (I assume). You would have to be able to show the skills you have that are needed in the quant space
@@DimitriBianco Thank you for your answer! After I commented just realised its a 7 years old video so I really appreciate your answer. Yes I trying to learn math, statistics more. I will start my Math Bsc in September.
I have a Masters in Financial Maths from one of the top 10 universities in the world. I graduated in 2019 and I've been applying for Quant positions for 3 years. In the past 3 years, I've attended 30 if not 40 final stage interviews but nothing came to fruition. I feel like I'm the only exception in my Masters class. Do you think the interviewers have biased opinions toward those great but not genius graduates? If not why do I continue to fail? How many more years do I have to endure to get that entry level job? I feel like I have a little bit Aspergers, with a tested IQ of 132. Can I still have a shot?
Finding the reason for why you aren't getting a final offer will be challenging but the only real solution. Often the final interview is decided on how you would fit a specific team (think culture and soft skills) and not as much of the technical side. The industry wants bright people but also people who are easy to work with and fit their specific team. Every company has a different culture though so it can be a challenging process.
@@DimitriBianco Thx for the advice
How do you expect these to change? Will AI ever be better than people at the statistics portion? Will everyone in this field who isn’t an AI Genius be out of a job in 5-10 years? Lol just curious I’m nowhere near being a quant and completely ignorant.
That's actually a good question. No, I don't think AI will take over model development or statistics as a whole. AI models do very well with non linear relationship however traditional statistics outperform AI in linear space. There is also a lack of understanding of the relationships between cause and effect which is important to a lot of businesses. I do think we'll eventually find ways to extract these relationships from AI but it will take some time. I view AI as a new layer of tools to solve problems we weren't able to solve in the past but traditional statistics is still needed.
Wow! That's a lot more than you need to know to do Data Science.
DS is more communication and less Mathematics.
80 percent of these stuff are discussed in CQF.
is it possible to get a quant job as a undergraduate? I dont have any award from math competition or something..
Jake Kim it's possible but highly unlikely.
Would a Finance major with a math minor be good to break into Quant finance? I don’t want to be someone who codes rather the person who’s actually implementing quant methods. I do not really want to take CS in college but I am starting to realize that it’s very important to atleast have some cs knowledge. Any suggestions ?
Sounds like you want to work hedge funds
Looks like the course I’m studying
Which course?
Back Quantitative Risk Management. I prefer the name Quantitative Analysis but that’s not what it’s called via my University
Is the master of Finance from London a good idea?
If you want to do traditional finance it is a great program. If you want to work in quantitative finance it won't help you.