Journey from Kid to Quant Researcher: Insights and Lessons Learned
From a young age, I was captivated by the bustling activities on the exchange floor, the invisible hands guiding market movements. My fascination with the world of finance and the logic behind financial decisions only deepened as I grew older. My path to becoming a quant researcher and trader is a multifaceted story, marked by both triumphs and disappointments. This article delves into my journey, the lessons learned, and the pivotal moments that shaped me into a successful quant in the financial markets.
Early Fascination and Early Beginnings
Growing up in the 1980s and 1990s in a middle-class family in India, I had dreams of becoming a doctor and saving lives. However, the practical realities of the time made engineering seem like a more realistic path to a lucrative career. Programming, thanks to my exposure to Linux in 1997, sparked a love that has only grown stronger over the years. My mother, an early investor in stocks since 1982, introduced me to the world of financial instruments, specifically derivatives, in the early 2000s. This early exposure to the complexities of the market set the foundation that would lead me to the world of quant trading and analysis.
Academic and Professional Journey
My academic journey began with a degree in Engineering, where my interest in programming and statistics started to solidify. The transition to a Master's in Statistical Engineering deepened my understanding of risk and reward, and my interest in energy markets led me to a Master's in Financial Markets with a focus on Energy Markets. This journey culminated in internships at prestigious institutions and roles that would eventually shape my career.
An internship at a big bank as a trading analyst for exotic rate derivatives provided me with invaluable experience. Shortly thereafter, I worked as a Quantitative Trading Analyst for an Energy Trading Hedge Fund in Switzerland and then transitioned to a role as a Quant Trader in a major utilities company in Germany. Finally, the experience gained from these roles led me to a position as a Senior Structurer and Quant Analyst at a Fin Tech firm, where I worked on complex trading strategies and financial models.
From Value to Quantitative Investing
What began as a passion for saving lives through medicine evolved into a deep interest in the mechanics of the financial markets. My mom's introduction to stocks in 1982 and her struggle with derivatives in 2000 were pivotal moments that set me on a path to understand and develop trading strategies. My first forays into trading ended in significant losses, but it was these experiences that taught me the value of discipline and strategy over intuition.
The year 2006 marked a turning point in my career. A black swan event led to a loss and a critical examination of my investment philosophy. This event, combined with the teachings of Nassim Taleb on randomness and chaos, led me to rethink my approach. I realized that algorithmic trading and investing were more robust strategies than traditional value investing. Despite the losses, I used the experience to fund my education and joined the prestigious University of Oxford in 2007, where I furthered my knowledge in international finance.
Entrepreneurial Ventures
The pursuit of knowledge and the desire to find practical solutions to the complexities of the market led me to co-found Informatics Data Group in 2008, providing data services on illiquid assets such as CDOs and CDSs. Despite the challenges, I returned to India and founded Angani Capital Advisors LLP in 2010, building algo trading strategies for hedge funds and trading platforms for stock brokers. The creation of Spotalpha in 2018 brought my quant expertise to the broader individual investor community, helping them benefit from quantitative analysis and trading strategies.
Pivotal People and Influences
A number of people have played a crucial role in my journey, starting with my early exposure to stocks from my mother, who was an early investor. My brother introduced me to the world of programming, setting the stage for my future endeavors. Ketan Parekh's actions led to the introduction of derivatives, and Sitaram Yechury's words resulted in a stock market crash that renewed my focus on quantitative approaches. Nassim Taleb's work shaped my understanding of randomness and risk management, contributing to my success in the highly volatile financial markets.
Conclusion
The road from a young child fascinated by exchange floors to a successful quant researcher and trader has been filled with challenges and learning experiences. By leveraging my early educational and professional experiences, I have been able to develop and refine my approach to quantitative analysis and trading strategies. The lessons learned along the way continue to inform my work, and I am committed to continuing to innovate and drive value in the financial markets.