Also do developers solo makes quants like they make solo video games ? How does a a quant startup operate ? Where should I learn more about this ? What are disadvantages of quants ? Please explain this with relation to python programming and what libraries are used ?
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The term quants are pretty ambiguous, but they typically describe the mathematician who creates a trading algorithms based on mathematical principals. The goal of a quant is pretty much guess right >50% of the time in the stock trades, and the software/hardware portion that automates the finding and execution of the trades are usually given to a different people who specializes in optimization of those areas.
It is possible to become a solo quant that can do it all with just basic python programming skills assuming you also have these other skills, resources, and constraints:
1. Slower trade is acceptable and your algorithm is not reliant on speed
2. Mathematical skills: Probability, statistics, multi-variable calculus, linear algebra at the bare minimum. You’ll need these to have the ability to explain the algorithm and why it works effectively (so no, you can’t use a “make me a trading algorithm” library if you don’t know how it works)
3. Money to blow
4. Historical stock data and other potentially relevant data for the algorithm to be used for analysis, possibly machine learning
5. The ability to process the data (Data ETL)
6. API access to a stock exchange
7. Knowledge of how to use an API
8. Knowledge of trading terminologies and products
Keep in mind, these 8 are probably the minimum requirements if you want to do this solo and actually have the chance of success. I’d be more then happy to go into any one of these and why without it, your success rate will drop to near 0%.
Main difference between a quant and quant startups is that quant startups require institutional investors and if you’re a nobody, have no experience, or any other red flags, no one will be investing into it (assuming they do basic due diligence into your startup).
The disadvantages of the quant space is that you’re competing against teams of Nobel Laureates and other talent that you frankly can’t buy/hire with money. A lot of these quant companies AGGRESSIVELY hire talent to a point where the top quants easily reject $10 million/year pay packages
On the hardware/software level, these quant companies also spend hundreds of millions on custom hardware & fiber optics to a point where the speed of light comes into considerations when estimating speed in request/responses
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