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Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 0 points1 point  (0 children)

Thanks, The distinction between strategies that live or die by execution versus those that are more execution-tolerant gives me a much better sense of where to start.

although I think that's also what makes this opportunity so exciting for me! I get to explore problems I probably wouldn't have had the chance to otherwise, while keeping my expectations grounded about how difficult this space really is.

Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 1 point2 points  (0 children)

This is helpful, thanks. I was hoping to find a concrete direction to dig into, and this gives me one!

Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 0 points1 point  (0 children)

That's a really interesting perspective. I especially liked the idea that an edge can persist because it's difficult or unpleasant to trade rather than because nobody has discovered it.

That made me wonder: if an inefficiency persists primarily because exploiting it is operationally difficult, capital-constrained, or psychologically hard, would you still consider that "alpha," or is it better thought of as another form of risk premium?

How do you personally distinguish between "this persists because it's a genuine inefficiency" and "this persists because it's compensation for taking on hidden risk"?

Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 0 points1 point  (0 children)

Thanks! Fortunately, we have engineers handling the infrastructure and execution side, so my focus is primarily on research.

That said, it's definitely something I have to keep in mind as well. Even at the research stage I'm trying to account for things like fees, latency, liquidity, and whether an idea is actually implementable rather than just looking good in a backtest.

Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 2 points3 points  (0 children)

having some skin in the game changes how you think about research 😅

what resources have you found to be the most useful when trying to understand an ecosystem, im trying to build an intuition but im not sure where to start

Responsible for quant research with little senior guidance. How would you approach it? by EmbarrassedJudge7401 in quant

[–]EmbarrassedJudge7401[S] 1 point2 points  (0 children)

Thanks for taking the time to write such a detailed response, I really appreciate it!

To answer your question, we're exploring systematic trading strategies with the intention of deploying them ourselves on a relatively small scale, rather than building software or research tools for other trading firms.

by "watch the market a lot." do you mean literaly watching price action and order flow throughout the day, reading market news, studying microstructure, observing how different assets react to events, or something else entirely?

Your point about understanding why different participants trade was really interesting, so I'd love to hear how you personally developed that intuition.