Soton Quants: Welcome17th October 2016

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Being a Soton Quant

- Regular meetups at Southampton Uni- Share ideas / strategies / tools- Contribute to sotonquants.com blog- Reading groups- Seminar groups- Tutorials- Implementing trading algorithms- Live algo testing- Personal development

What is quant trading?

Some definitions

Electronic trading: buyers and sellers place orders electronically and are matched automatically in an electronic order book

Algorithmic trading: using computer programs to make investment decisions and execute trades

Quantitative trading: using quantitative analysis and data analysis to make trading decisions

High frequency trading: algorithmic trading with many trades per second

What google thinks quant trading is…

What quant trading actually is…

- Programming- HPC / HFT / cloud- Order book and market tech

- Regulation- Understand stakeholders- Client requirements

- Probability theory- Statistics- Data science- Machine learning

- Market knowledge- Economic theory- Psychology

Technology

BusinessMathematics

Economics

The evolution of the quant trader

Old skillset

- Partial differential equations- Stochastic analysis- Numerical methods- High-level developers

New skillset

- Data scientist- Business person- Manipulating data- Extract info from large / complex datasets- Understand costs and tradeoffs- Statistics- A developer / programmer

Paul Bilokon (Deutsche Bank) - Global Derivatives 2016

The quant trader process

Get training data

Implementation

Economic theory

Paper trade

Build a model

Backtest

Live trade

A revolution in machine learning education and implementation

Free and open-source

Quant finance revolution?

- Free to use- Access to live market data- Research environment- Crowdsourced algorithms- Online IDE- Monthly competitions- Allocation- Open source tools

- Zipline- Pyfolio

Quantopian demo

Upcoming events

- G-Research trading competition- Amplitude Trading on campus- Bloomberg terminal training and BMC- Careers talk from lead engineer at start-up Cytora

Next meetup: Tuesday 1st November