I'm new here and hope to learn a lot from your experience. I'm still earning my master degree and want to understand the career path as a prop trader. I haven't had any work experience, only internship and mainly focused on algorithm trading. I'm interested in scalping. Is there any firm recruit trader mainly scalping? Is it possible to develop an automated scalping strategy? Thanks！！！
Last edited by Clydexi; February 1st, 2016 at 05:21 PM.
Reason: to be more specific
This post has been selected as an answer to the original posters question
What is your masters in? Having both computer science and advanced mathematics degrees would both be attractive.
It is usually easier to work for one of the big banks and then use that CV to get your way into a prop firm. Or you could always just apply somewhere directly to the likes of Citadel.
If you had a successful model, you could just try to sell it. Though that model would probably need to be able to handle anywhere from $50M-$100M in capital to be attractive. If you were however looking for a job to learn, then best to let someone like Goldman give you the shiny gold star saying you are employable, then make your way into a large prop shop or HFT shop.
You could also browse through linked in to see what type of credentials will typically be required to crack your way into the industry.
The following user says Thank You to MacroNinja for this post:
Thanks MacroNinja! I majored in applied mathematics in my undergraduate and am earning a financial mathematics master degree now. I use python a lot and can also work with C++. I was turned down by Goldman and MS sales&trading summer internship after phone interview, maybe my English is not that fluent...TT(I am an international student and came to USA last August). So I decide to start sim trade es, hoping to get a good record to impress interviewee.
For the type of role you're applying for, 'sim trade' and 'scalping' experience gives you no advantage in being accepted.
I would actually spending the time doing research or programming projects and also improve on your resume and interviewing skills. Your university should have a career development office that can help you with the latter.
Also, at your stage in your career, don't fixate yourself on just a very specific type of prop firm ('automated scalping' sounds too specific). Pick a place that will bring you good learning experience.
Thanks artemiso ! what kind of research or programming projects do you mean? Pricing model or risk management? It seems that banks prefer Phd if they want to recruit somebody to do the pricing work. Banks now don't have prop trading business due to law. So which department in big banks do you suggest?
It depends on what you're lacking in. My best guess is that any Masters in Finance (or Financial Mathematics) program already makes you do a few projects in standard options pricing, modern portfolio theory, simulation etc. There's plenty outside the scope of these, acquainting yourself with algorithms and tools for data management (databases, scripting) is generally helpful.
If you're interested in former BBB prop trading desks, they still pretty much exist under different names: Arxis, PDT, Saba. There's still 'prop' disguised into other operations, internal MM, public exchange MM, FX and you could certainly go into that space if you like.
Your best bet for 'scalping'-style trading with a discretionary element is probably at one of the Chicago MMs like Akuna, IMC, CTC.