I just discovered this podcast called "Chat with Traders." It looks really interesting and I plan to listen to them all (in reverse order) and share my notes for each one.
Episode 125 -- Matthew Hoyle (58:35)
- Dutch?
- Born in 1984?
- Head hunter
- Formerly an options market maker, in Amsterdam
- On trading floor for six years
- Started at age 13? Is that possible?
- Exchange went electronic 2003
- Didn't go to university despite opportunity to go to the best (in Holland?)
- Went into head hunting in 2003
- Makes more money as a head hunter than he did as a trader
- Paid seven figures as a trader
- "Executive search" is the high end, "experienced hires"
- Recruitment is volume-based
- Relationship-based business
- Doesn't hire for "arcades" (where people bring their own money)
- If a head hunter calls you, listen, don't just hang up
- People (traders) like to talk about what they're good at
- "Manual" trading firms disappearing, everything is automated now
- Don't apply for stuff that you're not qualified for
- Most firms want to hire fresh grads, *not* experienced people
- Mental arithmetic tests used as stress tests
- Technology + trading is the key combo ... must be able to program
- Don't bother learning Java now, must know scripting languages
- Old point and click traders hire coders to automate what they know
- Paul Rotter, a classic point and click trader, "The Flipper," retired now
- Whole industry is automating, all algo traders now
- Experienced manual traders making a bit less money every year now
- Strict division in some firms between tech side and trading side
- Shortage of C++ programmers so severe they'll take any age
- PDT, Renaissance Tech ... they want academics, will take old guys
- Perks are nice, but retaining people all about compensation
- Formula-based percentage of trading profits
- RenTech has zero turnover ... extremely highly paid people
- Discretionary bonus models; team-based structure, profit distribution
- Pit traders in Chicago haven't vanished entirely, just much smaller numbers
- Prop trading within banks did completely disappear for awhile
- Hiring is based on volumes first and volatility second
- Virtu has only 150 employees worldwide
- Volatility high means traders hired, volatility low means tech guys hired (fight latency wars)
- Volatility and volumes both low, layoffs hit hard (hedge funds, prop trading)
- Banks not as nimble as hedge funds, way overstaffed, full of dead wood
- AI is going to be big, lots of demand for people who understand it
- A trader with one strategy, a one-trick pony, will never be hired
- You have to be passionate in the interview, don't be negative
- People will hire you because they think you'll make them money, it's obvious
- Do mock interviews! Practice makes perfect. Use Glassdoor to get the questions
- "Thank you for inviting me."
- www.matthewhoyle.com
- Twitter: @MatthewHoyle