Quote:
Originally Posted by Barrin6
How do you break into the HFT firms as someone who isn't a math Olympiad or didn't go to a top 10 school?
I do a competitive on the side for fun but I'm not even that good. I'll consider myself good once I start placing high enough to win those free t-shirts and hoodies!
I did not go to a top school, and I am not really the type who is into programming competitions or puzzles or stuff like that. Some of the people who worked there *were* like that, and there was probably a bias towards those kinds of programmers. Getting hired was exhausting - programming exercise up front, which they are *super* serious about, and whiteboarding all day.
My skills, and the reason I think I got hired, are in system simplification. A lot of the work that I did while I was there was replacing complex systems with simpler ones. Sometimes the simpler ones were faster, or enabled speed improvements, and sometimes they just freed up brain space for developers/it/devops/etc. I was not really one of their hot **** developers.
It probably helped that I knew a few people who worked there, from previous jobs and from a school I went to. That probably bought me the benefit of the doubt - they were one of those places that will pass on anyone if someone in the interview process is not 100% on board.
The industry seems to really be contracting right now. I started there in like 2010. In 2013 or 2014 there was a round of layoffs. There was a 2nd round of layoffs in like... 2015? And I was part of those, along with around 20 other people. 10 of those people weren't "really" laid off, they went to work for a spinoff.
This year the HFT company got bought by a competitor, presumably because they were having trouble making money and wanted to consolidate costs. The spinoff is limping along but I think it's in trouble.
At some point the industry might consolidate enough that it can be profitable again. A big problem was that it is easy for an individual HFT company to become a significant portion of the market. I never verified this but I was told that on some days our firm was about 10% of the US equities market. It is really hard to expand by trading more because eventually there are no counter parties. If your HFT competitor are as good as you and they are also 10% of the market, then if there are more than a few of you, you all lose. It's a little like how a few decent players at a live high rake poker table will all lose money, even if each individually has an edge.
Access to the markets is pretty expensive, so the consolidation makes them money by removing a competitor, but also by removing millions/year in subscription costs.