fast arithmetic and trading: a factor?

from what i know,

80 questions in 8 minutes like 0.64-0.13 = ? or 0.0006 - 0.006 = ? or 14/7 - 28/7 = ? 453 x 353?

Correct answer = 1 mark
Incorrect answer = -1 mark
Missed answer = -2 marks

pass rate is 50-55.

the best way to prepare for this, is to make yourself sample questions e.g.:

45 x 27?
43/53 + 64/21?
0.43-0.001?

make urself 100s of questions like this and keep practicing until u get ur speed up.. for some quick calc tips see http://mathforum.org/k12/mathtips/beatcalc.html

they sometimes make it harder by using "," for decimal points in place of "." and using ":" in place of division "/". e.g. 4:2 = 4.

Then you get one sequences and series test, you have to recognize patters and, finally, you get more in-depth math questions.

u can only sit the test once and never again so if ur not prepared maybe u wanna sit it later.. i still think its bollox and i dont wanna relocate to amsterdam.

hope that helps.
 
Make sure you go in with a watch and announce the time that you actually start the test. That way, if you have a dizzy assistant that comes back after 8 minutes instead of 10 you can correct them. And to think that maybe 1% of NFL recruits gets over 40 on the Wonderlic...
 
Quote from Batman28:

i don't quite get it.. how the hell in my wildest dream can i get 68 questions correctly? can u explain what u mean, hmm..



"*During this test meeting your numerical skills will be tested. It is a paper-based test with a strict time-limit, in which you will have to complete the calculations as quickly and accurately as possible. You are not allowed to use a calculator. The first test is decisive and a very strict norm is applied. Only if you pass the first numerical test (which takes only 8 minutes) you can proceed with a second and third test (total time for making 3 tests is about 1 hour). The test(s) do(es) not contain any option constructions etc. as you do not have to have this knowledge when starting as a market maker with Optiver. In relation with our company policy you can try to pass the test(s) just one time and we do not provide example questions. After passing all three tests with good results, you will be invited for interviews."
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I just posted a way to give yourself the maximum time to do the minimum work to complete 80 questions.

I can understand that you didn't get what I posted.

But, I was suggesting that if you did such a thing that it would set you off from others and imply and infer to the examiners that you do have the ability to make up (use at least) a strategy to get around your math shortcomings.

Then I continued to type words in sentneces that formed some humor of the sort which is commonly missed by ET readers. I hardly ever post anything that is OT that is not a form of humor.

it is hard to explain to you but you are a person who is going to have alot of interviews and they will go on until you find an outfit that will accept you according to a different criteria than you are currently running up against.

for example I interview for staff. I ue a thumbnail calculator with five variables. as the person speaks I jot down the answer to each variable. At some point I have all of them as I get them I do the math carefully and quickly.

Then I have a number that tells me the profit I will make on the employee annually. And it is based upon his past performance.

My humor to you was to have you tell the "story" of your testing strategy to a person who does not test. he would then judge you.

When I hire I offer a salary. My minumum for the interview is 350,000. I know what I will make and he knows what he will make. In this example the gross generated is 2.1 million and his take is 350,000. I just operate in places where his exclusive efforts will cover the water from ad nauseum.

I am sorry to here that you cannot do 68 questions in 8 munutes. I felt that it was better than not trying at all. I felt that having the extra time per question might have been of value to you. It is not and perhaps you still do not understand that you would have had a net score higher than the net minimum and youwould have been able to continue the harder "knowledge" parts of the test.

I do not take calculators to meeting and when I see an opposite doing calcs to discuss stuff with me. I mentally calc the answer before he can read it and I hope he does not persist in using a calculator in front of me which shows he does not have the ability to think quickly.

nonsense is posting on my comments because he also missed the humor.
 
95% of short term trading is gut feel - the ability to consistenstly and correctly intuit probabilities.

I'm not amazing at arithmetic myself, and frankly, the only time being better at it would come in handy is when I get an awesome print and want to average up - calculating the weighted average and whether or not doing so would still place me in safe territory (based on that gut feel).

But, I have an Excel calculator open for that so that I can just calculate hypothetical wieghted average prices in real-time.

So, the answer to the original question is: Yes, being good at arithmetic is helpful. But, being intuitive is much more important. You can develop work around for any mathematical shortfalls in daytrading.
 
cool..

i know being really fast at math can help in high frquency trading no doubt..

but which is more porfitable and successful? high frequency trading, or relaxed swing/trend following? dont u think its much much more likely to blow up trading frequently?

we might all have a good run following mili-second trends, but can anyone be successful at this over long periods of time?
 
I tend to position trade intraday. So, yes I agree. Scalping is a losers game in this market - pretty much impossible to make money consistently scalping.
 
the reason why Optiva in particular want you do take these tests is because of the nature of thier business model. they want people who can rope learn to do things very quickly, and given that trading involves numbers....it becomes simple maths questions. Optiva are a high volume numbers options outfit. they want people to just do volume volume volume with the idea as market makers they take lots of small edges. Their system is already worked out. They aim to eliminate the physc stuff but just getting a piece of every deal put through the option markets.It has made them very profitable. But bewarned, they have a high volume staff turnover as well.
Not for everybody, but i'd suggest you still take the test, you never know it might work out for you. The best advice i received from someone when starting out trading was "do it for 6months, if you dont like it you can always quit"....after 2 weeks i knew trading was the proffession for me.
good luck
 
Fast arithmetic means nothing if you're trading, especially if it is in something like futures.

At Refco, we were given a series of tests where the answers are simple (like in an arithmetic test) but given under a high pressure scenario i.e. time restraints and over emphasis on importance of results.

All this is is a test to see if you can come up with the right answers under pressure. It wont matter whether you finish the test or not, simply if the answers you give are right- if you can't remember you're own f**king name or how to multiply two numbers together under a bit of pressure when no money is involved, how are you going to react when you're offside to the tune of $100k on a trade and you need to objectively decide what to do......

That's the theory, anyway.

Good luck and don't stress about it- just take your time.
 
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