The Quantitative Trader Career Path
What does a quantitative trader do and how can you land a job as one.
If you're interested in the fast-paced world of trading and have a passion for financial markets, then a career as a quantitative trader may align well with your interests. Quantitative traders, also commonly known as "algorithmic traders", are finance professionals that are responsible for leveraging models built by quantitative researchers in order to execute trades that will generate alpha for the firm.
Quantitative traders can be found in a variety of firms. Oftentimes, investment funds, proprietary trading firms, and investment banks will hire many quantitative traders in order to execute on their various strategies. While a bachelor's degree in some technical discipline (such as computer science, mathematics, statistics, or physics) is the minimum requirement for this role, a master's degree or even a PhD can be very beneficial for those looking to stand out in a competitive job market.
The annual total compensation for a quantitative trader can range from $200,000 to $250,000 or higher, depending on the specific role and company. However, it's important to note that the stability of this job is generally considered to be low, as the financial markets are constantly changing, and the demand for these professionals can be unpredictable.
The work-life balance of a quantitative trader is typically considered to be below average, as the job can require you too work way over 40 hours and will often require intense focus. The level of stress can also be quite high, as the financial markets are fast-paced and unpredictable, and traders must be able to make quick and informed decisions under pressure. If you're someone that enjoys quickly solving puzzles, QT might be right for you.
Despite the demands of the job, a career as a quantitative trader is considered to be prestigious, as these professionals are esteemed at their firms and have a great impact on the overall outcome of the firm. However, the career progression opportunities for quantitative traders are generally considered to be low, as advancement is often limited to roles within the trading department.
Quantitative traders may be responsible for developing their own quantitative models, but more often than not they will work alongside quant researchers and quant developers to develop and implement these models. The specific responsibilities of these roles can vary depending on the financial market and/or fund type, as well as the level of technical skills required. For example, algo traders may be a less technical subset of quantitative traders, with a focus on implementing and executing trading strategies using pre-developed models. To find jobs in quantitative trading be sure to check out OpenQuant.