Notes for Chat with Traders, Episode 125

Added on by C. Maoxian.

I just discovered this podcast called "Chat with Traders." It looks really interesting and I plan to listen to them all (in reverse order) and share my notes for each one.

Episode 125 -- Matthew Hoyle (58:35)

  • Dutch?
  • Born in 1984?
  • Head hunter
  • Formerly an options market maker, in Amsterdam
  • On trading floor for six years
  • Started at age 13? Is that possible?
  • Exchange went electronic 2003
  • Didn't go to university despite opportunity to go to the best (in Holland?)
  • Went into head hunting in 2003
  • Makes more money as a head hunter than he did as a trader
  • Paid seven figures as a trader
  • "Executive search" is the high end, "experienced hires"
  • Recruitment is volume-based
  • Relationship-based business
  • Doesn't hire for "arcades" (where people bring their own money)
  • If a head hunter calls you, listen, don't just hang up
  • People (traders) like to talk about what they're good at
  • "Manual" trading firms disappearing, everything is automated now
  • Don't apply for stuff that you're not qualified for
  • Most firms want to hire fresh grads, *not* experienced people
  • Mental arithmetic tests used as stress tests
  • Technology + trading is the key combo ... must be able to program
  • Don't bother learning Java now, must know scripting languages
  • Old point and click traders hire coders to automate what they know
  • Paul Rotter, a classic point and click trader, "The Flipper," retired now
  • Whole industry is automating, all algo traders now
  • Experienced manual traders making a bit less money every year now
  • Strict division in some firms between tech side and trading side
  • Shortage of C++ programmers so severe they'll take any age
  • PDT, Renaissance Tech ... they want academics, will take old guys
  • Perks are nice, but retaining people all about compensation 
  • Formula-based percentage of trading profits
  • RenTech has zero turnover ... extremely highly paid people
  • Discretionary bonus models; team-based structure, profit distribution
  • Pit traders in Chicago haven't vanished entirely, just much smaller numbers
  • Prop trading within banks did completely disappear for awhile
  • Hiring is based on volumes first and volatility second
  • Virtu has only 150 employees worldwide
  • Volatility high means traders hired, volatility low means tech guys hired (fight latency wars)
  • Volatility and volumes both low, layoffs hit hard (hedge funds, prop trading)
  • Banks not as nimble as hedge funds, way overstaffed, full of dead wood
  • AI is going to be big, lots of demand for people who understand it
  • A trader with one strategy, a one-trick pony, will never be hired
  • You have to be passionate in the interview, don't be negative
  • People will hire you because they think you'll make them money, it's obvious
  • Do mock interviews! Practice makes perfect. Use Glassdoor to get the questions
  • "Thank you for inviting me."
  • www.matthewhoyle.com
  • Twitter: @MatthewHoyle