School vs. Experience: What’s Better for Advancing as a Quant Trader?
Hi everyone,
I’m feeling a bit lost and need some guidance on whether to continue as an executive trader or complete my master’s degree.
I attended a non-target school in France and have a solid background in computer and data science. I started my master’s but took a gap year to intern at a discretionary hedge fund focusing on data analysis. After that, I was offered a full-time trading role at the fund (which has $1 billion in assets under management and performs well, but is a single-managed fund). I’m the sole coder on the front office team and contribute to quantitative research, although I can only work on coding projects after 5:30 PM. This role has offered me significant responsibility and valuable experience, but I’m uncertain about my next move.
I’m due to resume my master’s in a few weeks, focusing on Data Science and AI, but my current fund would like me to stay on. My long-term goal is to become a quant at a leading fund, leveraging both my current experience and my academic knowledge. I believe that earning a degree from a top U.S. program would enhance my prospects. I applied last year, received an interview invitation but didn’t get an offer due to concerns about my recent academic history. I applied again this year, now with trading experience on my CV, but I haven’t received any offers or interviews yet.
To strengthen my application, I’m unsure whether it’s more beneficial to remain in trading (which is already reflected on my CV) or to complete my master’s in computer science. Colleagues in my firm have suggested that school might not be necessary and that I’m in an excellent position for my age. However, a quant PM I spoke with from London mentioned that without practical experience in developing models and managing PnL, transitioning to a quant firm would be challenging. I currently work 60 hours a week and might earn around $300k this year due to my performance, but my PM is skeptical of quant models, and it seems unlikely that I’ll have the opportunity to implement one here. For context, we are a small team of two executive traders and one PM managing over $1 billion.
Would it be wiser to stay in my trading role or finish my master’s to improve my chances of getting into a top U.S. quant program? I would greatly appreciate any advice.
If anything needs clarification, please let me know—I aimed to make this post as clear as possible.
One response
Your situation is indeed a challenging one, and it sounds like you’re weighing some significant options for your future. Here are some thoughts that might help you make a more informed decision:
Value of Experience vs. Education: Your current role appears to be incredibly valuable in terms of hands-on experience, especially if you’re the only one coding in the front office and contributing to quantitative research. This suggests you are gaining practical skills and responsibilities that are often highly regarded in the quant world. On the other hand, completing a master’s degree, particularly from a top program, can open doors and provide you with both theoretical knowledge and networking opportunities that are crucial in the finance industry.
Long-term Goals: It seems your long-term objective is to become a quant at a leading fund. If you feel that finishing your master’s will significantly enhance your skills and marketability for that goal, it might be worth considering. However, you need to evaluate how much you believe the degree will outweigh the experience you’re gaining now.
Opportunity Cost: Staying in a profitable trading role where you’re well-compensated (possibly $300k) is a strong draw. Consider what the opportunity cost is for going back to school. Would you be able to re-enter the same or a similar role later, or would you lose momentum in terms of career progression?
Networking and Application Strength: While your current trading experience is valuable, having a master’s from a top program could provide networking opportunities that are harder to come by outside of academia. If you believe your master’s could significantly strengthen your quant applications, factor that into your decision.
Future Opportunities: If you plan to continue applying to top quant programs, assess what the admissions committees are looking for. If they prioritize academic credentials more than practical experience, completing your master’s might be beneficial.
Current Work Environment: If your current PM is not supportive of quant models and you can’t progress in that direction, it might be limiting for your growth as a quant. If you believe you’ll be stuck in a role that does not allow you to develop the skills you need, that might tip the scales toward finishing your degree.
Making a Decision: Consider discussing your situation with a mentor or colleague you trust, who can provide insights tailored to your specific circumstances. Ultimately, weigh how each path aligns with your career aspirations, risk tolerance, and personal circumstances.
In summary, both options have merit; staying in your current role gives you valuable experience and compensation, while finishing your master’s can enhance your qualifications for future roles in quant trading. Carefully evaluate which path aligns better with your long-term goals and current opportunities. Good luck!