Career Transition: Software Engineer to Quantitative Developer
Many software engineers in my network are interested in transitioning to quantitative development roles but often lack a clear understanding of what the move entails.
𝗪𝗵𝘆 𝗠𝗼𝘃𝗲?
Reflecting on your motivations is crucial. A word to the wise: most firms seek compelling reasons beyond “my friend from University makes more money than me”.
𝘾𝙤𝙣𝙨𝙞𝙙𝙚𝙧 𝙩𝙝𝙚 𝙛𝙤𝙡𝙡𝙤𝙬𝙞𝙣𝙜…
◽ Greater intellectual challenges (Coding + Maths + Finance)
◽ Closer collaboration with quants – every day
◽ Greater impact on fund performance (one quant developer at a hedge fund was paid an £8M bonus in one year)
◽ Better career progression (Firms with QD’s tend to have offer a steeper learning curve through a more 360 role)
𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂 𝗺𝗶𝘀𝘀𝗶𝗻𝗴?
There is significant overlap between pure engineering roles on the buy-side and quant development roles – but to make a successful move, you need to identify areas where you might benefit from upskilling, as well as those where you can add value.
*𝙃𝙞𝙜𝙝𝙡𝙮 𝙜𝙚𝙣𝙚𝙧𝙖𝙡𝙞𝙨𝙚𝙙* 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙘𝙚𝙨 𝙗𝙚𝙩𝙬𝙚𝙚𝙣 𝙩𝙝𝙚 𝙌𝘿 𝙖𝙣𝙙 𝙩𝙝𝙚 𝙥𝙪𝙧𝙚 𝙎𝙒𝙀
𝘚𝘰𝘧𝘵𝘸𝘢𝘳𝘦 𝘋𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳: Focuses on building infrastructure components required for trading and occasionally assists quant developers with their strategies.
𝘘𝘶𝘢𝘯𝘵 𝘋𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳: Closer to a researcher, they analyse data to derive quantitative insights that can inform new trading strategies or improve existing ones. They code, test, and implement strategies themselves, optimizing trading prototypes and building trading infrastructure from scratch.
𝗖𝗼𝗿𝗲 𝗦𝗸𝗶𝗹𝗹𝘀
Success in a quant development role requires both technical skills and deep financial market knowledge.
◾ 𝙏𝙚𝙘𝙝𝙣𝙞𝙘𝙖𝙡: A strong engineering background is essential. If you could cherry pick languages, the safest bets are Python and C++ is highly transferable and valuable in this space.
◾ 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙈𝙖𝙧𝙠𝙚𝙩𝙨: Understanding capital markets and how they function is crucial. Many roles require specific asset class experience, so staying informed about general market trends and delving into particular areas of interest is important.
𝗦𝘁𝗲𝗽𝘀 𝘁𝗼 𝗣𝗿𝗲𝗽𝗮𝗿𝗲
◽ Reflect on your motivations for a move.
◽ Identify your strengths and weaknesses in engineering.
◽ Delve into capital markets knowledge:
◾ Identify areas of interest.
◾ Understand how engineering can impact the front office.
4. Formulate a plan
5. Execute
𝗛𝗼𝘄 𝗖𝗮𝗻 𝗜 𝗛𝗲𝗹𝗽?
Having overseen such career transitions, I understand what you need to do to make this move. Get in touch for targeted reading lists, CV guidance, and access to roles that align with your profile and career goals.