ABOUT THIS EPISODE
How do you become a solo quant trader and build your own systematic trading business? Robert Carver, ex-head of fixed income at Man AHL—a $63 billion systematic trading hedge fund—shares how he went from managing institutional capital to becoming an independent, full-time quant trader.He reveals the key skills, mindset, and tools needed to succeed in quant trading without working at a big firm, how to create your own quant trading strategies, and why a PhD isn't required to break into systematic trading. Also, he shares how to manage risk and how he runs 200+ futures trading strategies as a solo trader with a small account.He breaks down:- How to become a quant trader without working at a hedge fund- The skills and background needed to succeed in quant trading without a math degree- Whether STEM is required for quant jobs- Why the Sharpe ratio is flawed and what to use instead- What separates top performers: traits of successful quant traders- How to build a quant trading career path solo vs going the institutional route- What investing strategies to use- The best quant trading strategies for individual traders- How to properly backtest trading strategies without overfitting- How to deal with alpha decay and determine when a strategy stops working- Inside the research culture of a top hedge fund strategies team- How to get into hedge funds in today’s competitive environment- What it’s like to work at a quant fund versus a more traditional hedge fundPlus: why most quant trading strategies rely on public, simple rules—and how to apply them profitably with a skeptical mindset.Robert is also the author of several acclaimed trading guides, including Systematic Trading, Advanced Futures Trading Strategies, Smart Portfolios, and Leveraged Trading. They’re what got Ethan (our host) into quant finance to begin with.00:00 Intro00:45 How to Handle Losing $1 Billion04:05 What It’s Like Working at Man AHL06:39 Why Quant Funds Hire STEM Grads08:43 High Frequency vs. Low Frequency Quants10:44 The Most Important Trait in Quant Research12:53 Is Sharpe Ratio a Good Metric?16:41 Geometric Returns vs. Sharpe Ratio17:45 How to Avoid Overfitting in Backtests21:28 Dangers of Implicit Fitting in Models23:02 How Robert Deals With Alpha Decay25:29 Robert’s Current Quant Trading Strategies28:45 Should You Trade Independently or Join a Fund?31:19 Why Trading Your Own Capital Is Hard32:09 Does He Look for Market Inefficiencies?33:45 His Biggest Trading Innovation: Execution35:45 How Hedge Funds Approve New Strategies39:27 Will Big Quant Firms Dominate Forever?42:44 Pod Shops vs. Collaborative Quant Culture43:48 Final Thoughts + His Books on Quant FinanceFind links to Robert's books here:1. http://www.systematicmoney.org/systematic-trading/2. http://www.systematicmoney.org/smart/3. https://www.systematicmoney.org/leveraged-trading4. https://www.systematicmoney.org/advanced-futures
