The person I know in treasuries who became a PM told me that he did so by being good at building the client franchise when on the sell side. Average 3-6 trades per week with a high win vs loss ratio.avg ~70% winners. Typical trade duration measured in hours. Not exactly close.some outright direction, some curve, some mis-weighted combo, depends on whats going on. Tl dr version of strategy.pattern recognition where trades are typically risk 4 ticks on 10yr notes to make 8-12 ticks. Would like to get a seat at a fund and trade this strategy as a PM / sub-PM.but since its been so long since worked at previous bank, nobody will even interview. Savings running low and so did research and found that back book prop strategy still viable, and so trading that in futures PA, and doing well (relatively speaking.this is a small account given that its a PA). Have been out of the working world for a number of years. Didn't lose money.but didn't hit "franchise goals" either. Wasn't great at doing that and so was let go in layoffs the following year. What advice would you give to someone in my situation:įormer sellside rates trader, (did some rates desk strat work before becoming a trader) new VP hire at a bank - developed a prop strategy and traded it in a back book.made 8mm on a 2mm stop in ~3 months before the back book was shut down by mgmt.was told to focus on building the customer franchise in the illiquid product for which i was hired to be the market maker (i'll admit, i was not focused on that as it did not seem to be a profitable venture). So across the board, you will have PMs who could just be taking home base salary (bad year/bad luck) to guys taking home $50m or so. Keep in mind that the vast majority the comp is all variable depending on the returns, given that bases usually max out around 250k. A PM running $100mm book earning 7% should be earning between 700k to 1.5m depending on the payout percentage on the contract. On the topic of rejection, I encourage everyone read The Subtle Art of Not Giving a F*ck.Ĭomp is extremely variable in the HF world and is often a reflection of how much capital the PM is allocated. wage work supporting a kid. So ultimately, best thing to do is embrace stress as a partner along your journey and enjoy the ride. I have seen plenty of guys making $1mm a year be more stressed out by money than a min. And you will eventually realize (or accept) that regardless of where you are in life, stress is inevitable and there are just different levels of stress. Most people perceive stress to be a negative thing but a stressful environment usually leads to innovation as well as to a higher level of performance overall. Want to work with me? Check my profile here. Eventually, this translated to one superday where an analyst position was created for me on a derivatives desk.įeel free to ask me whatever you'd like, or PM me if you're more comfortable doing that instead. I regularly flew to Manhattan on my own dime after lining up multiple coffee sessions and persistently followed up. Instead of a traditional campus recruiting process, I started my networking process late at the start of my senior year by cold calling every alumni and any contact I could find on the internet. The objective is pretty much generating as much uncorrelated alpha as humanely (or machinely) possible while maximizing Sharpe, etc. Given my current role on the buyside, my product scope includes futures, bonds, CDX index swaps, CDX index swaptions, IRS, Swaptions, ED$ options and more exotic derivatives as well. The vast majority of my daily work was focused on idea generation, backtesting and quantifying risk/reward on prop positions with the rest 20% market marking related. Prior to leaving for a multi-strat hedge fund (think Bluecrest, Millennium, Balasny, etc.), I was a macro derivatives trader on the sellside. Attended a top non-ivy undergrad with a degree in mathematics and economics.
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