Goldman Sachs is replacing old school traders with junior finance grads who know how to code

Banjo · Sep 17, 2015

You want to work as a trader. Does this mean you need to learn how to code? If you want to build an enduring career, the answer is almost certainly yes.

http://www.businessinsider.com/traders-need-to-know-how-to-code-2015-9

carrer · Sep 17, 2015

My opinion is while it is good to approach trading systematically or programmatically, it could not beat the traditional discretionary trading.

Systematic tradings will lose their edges over time, especially when more and more traders discover the same edges.

A discretionary method based on certain price actions will last, because that is how the market or traders' psychology works.

trhudson · Sep 17, 2015

Yeah, it was written almost 100 years ago that there were 4 price action principles that have stood the test of time in all markets across all time frames. Are you saying that's going to change?

cvds16 · Sep 17, 2015

trhudson said:
Yeah, it was written almost 100 years ago that there were 4 price action principles that have stood the test of time in all markets across all time frames. Are you saying that's going to change?

please enlighten me: which are those 4 principles ?

wrbtrader · Sep 17, 2015

Banjo said:
You want to work as a trader. Does this mean you need to learn how to code? If you want to build an enduring career, the answer is almost certainly yes.

http://www.businessinsider.com/traders-need-to-know-how-to-code-2015-9

This is a repeat story from many years ago (I believe 2003) about another firm. Commonality between both is YES but for quantitative. Yet, if you're a discretionary trader (not using automation)...coding obviously not needed.

Regardless, both articles was about professional traders working for institutional firms, hedge funds and such.

Can't really compare retail versus professional. Retail pay themselves and self-employed. In contrast, professional traders are salary with health/dental benefits and paid vacation plus bonuses when performance has exceeded expectations.

Yet, there is a growing number of professional traders going out on their own as retail traders...bringing with them that professional trading experience and professional trading tools (including quant and algo).

I wonder if there's some stats out their about the success level of pros (working for a firm) that go retail (self employed) ???

Scataphagos · Sep 17, 2015

carrer said:
Systematic tradings will lose their edges over time, especially when more and more traders discover the same edges.

A discretionary method based on certain price actions will last, because that is how the market or traders' psychology works.

The market has a large psychological component which is reflected in price. Market players (1) want to make money, and (2) fear losing. All the technology/quants will never change that. While some "things" can be coded, I doubt the psychology of "greed/fear" can.

nitro · Sep 17, 2015

Banjo said:
You want to work as a trader. Does this mean you need to learn how to code? If you want to build an enduring career, the answer is almost certainly yes.

http://www.businessinsider.com/traders-need-to-know-how-to-code-2015-9

Learning how to code is as important as knowing how to read, imo.

dealmaker · Sep 17, 2015

Banjo said:
You want to work as a trader. Does this mean you need to learn how to code? If you want to build an enduring career, the answer is almost certainly yes.

http://www.businessinsider.com/traders-need-to-know-how-to-code-2015-9

Point72 was the first one to go that route ie hiring recent college graduates instead of experienced traders/ analysts.

goodgoing · Sep 17, 2015

Now we wait when they will be fired.

felixbocharov · Sep 17, 2015

Nowadays coding is on of the most important skills that one can acquire. I'm learning how to code right now. And right now I'm a little bit disappointed that I didn't start to code earlier.