What Knowledge We Need to Know for Hedge/Algo

[Zelong Qiu]

Hi, I noticed that there are a lot of experienced practitioner and trainer in this forum. I would like to discuss what topics we need to know for jobs in hedge fund or also trading. From what I heard, the most desired skills in hedge fund/algo trading is statistics and computer science. More specifically, time series analysis, econometrics and machine learning. The sources told my that with these skills one can try to find the "new" trading strategies instead of backtesting/validating other's.

I'm applying for multiple MFE programs and I find that except few programs, like NYU, most other programs focus is on derivative pricing and risk. All of them are like well-developed techniques. It seems to me that MFE programs teach you the already developed techniques and since all of these models are widely used it is less possible for you to find a new one.

From the points above, I'm wandering if it is better to take a stat/cs degree with electives from finance, instead of taking a MFE degree. In my personal case, I got admitted to the Cornell MFE and Harvard CSE. Cornell's program is well defined with proven career statistics. Harvard's program is new but has much more flexible curriculum. It only has 3 core courses and can take electives from every departments in Harvard or MIT.

I would like to discuss about the knowledge for hedge fund/algo position. Also I would like to hear your opinion about these two programs. Maybe my understand and sources is biased. Please correct me or share your thoughts. Any feedbacks are welcome.

 

[Keith Tan]

this is bulls. top traders i work with tell me these are fancy toys. what you really need is people contacts and good understanding of the dynamics surrounding the security. how accurate is ml and time series analysis able to predict commercial movements, hedge funds' intentions or even counter other algos?

 

[CasanovaJ]

what you really need is people contacts and good understanding of the dynamics surrounding the security. how accurate is ml and time series analysis able to predict commercial movements, hedge funds' intentions or even counter other algos?

I agree... insider trading would probably beat machine learning any day of the week [crickets chirp]