Which degree would be best for Quantitative Trading?

systemtrader · 12/11/13

1. MS in MFE / Comp Fin

2. MS in Data Science / Predictive Analytics w/ focus on Machine Learning

3. MS in Comp Science w/ focus on Machine Learning and/or Artificial Intelligence

Which of the above degrees would best suit someone aspiring to become a quantitative trader? Would getting two or three of the above also be a reasonable option?

Alexandre Chretien · 12/11/13

Each degree is different. You may want to ask which courses or sets of skills would benefit you in becoming a quantitative trader.

C S · 12/12/13

Quant trader is an imprecise term. If you're looking to get into automated trading though, I would definitely pick 2 or 3 above 1. It also gives you better exit options if you need to look for opportunities outside of finance. Programs advertise themselves one way or another. It's important to carefully analyze a program to see if it will give you the necessary background. Just because it says "machine learning" doesn't mean it'll teach you what someone else might consider "machine learning".

ygmwy · 12/12/13

Quant trader is a really broad term. I'm guessing you don't know much about quant trading vs algo trading vs automated trading, and the details of each. You might want to start there, find out what interests you, and then look for a program that will give you those specific skills. It's actually a field that has different branches/specializations. Sort of like saying I want to do finance. Well what kind of finance? Either way, I would not enroll in more than one of the above. It's expensive, and you risk becoming a professional student. The other thing is that each program within each category is completely different. For example, Columbia's MFE program has a completely different flavor and objective than does the Princeton program. You can't really say that these students graduate with the same skills even though they are both MFE degrees. A general rule though: the program does not make the man. I have heard of examples of people who have graduated from each of these three, and have made it in the algo world.

Keith Tan · 12/12/13

systemtrader said:
1. MS in MFE / Comp Fin

2. MS in Data Science / Predictive Analytics w/ focus on Machine Learning

3. MS in Comp Science w/ focus on Machine Learning and/or Artificial Intelligence

Which of the above degrees would best suit someone aspiring to become a quantitative trader? Would getting two or three of the above also be a reasonable option?

honestly, none. No. 1 may give you some exposure to options, bonds, or credit, but none of these programs give you the skills to fight against seasoned traders. None of them give any deep focus on any particular asset class nor algo strategies.

MNRC · 12/12/13

I've noticed that the field of Quantitative Trading is really broad. Can anyone recommend any good books or websites that explains the field of quantitative trading and its sub-fields, like algorithmic trading?

Dataminer · 12/12/13

2 and 3 will be useful in other areas of finance as well, like prepayment prediction and others. Also I don't think there's too much of a difference between 2 and 3. You'll probably get similar education and come out with similar skill sets.

MNRC · 12/12/13

Where would a M.S. in Applied Math rank? I've heard people say it's valued more than a MFE at some places.

Dataminer · 12/12/13

MNRC said:
Where would a M.S. in Applied Math rank? I've heard people say it's valued more than a MFE at some places.

I think that would be pretty much impossible to know without some context. Like what do you plan on doing after the degree? what field ? what role? etc.

Also depends on what's gonna be covered during MS in applied math I guess.

MNRC · 12/12/13

My ultimate goal is to work as a portfolio manager of a hedge fund. With my current M.S. in CS if it happens it's probably going to a some kind of a quant fund. With a M.S. in math could I go into equity research and go the analyst --> portfolio manager route?

Keith Tan · 12/12/13

studying cfa helps if you want to acquire the skills to become a portfolio manager.

C S · 12/12/13

MNRC said:
My ultimate goal is to work as a portfolio manager of a hedge fund. With my current M.S. in CS if it happens it's probably going to a some kind of a quant fund. With a M.S. in math could I go into equity research and go the analyst --> portfolio manager route?

An M.S. in Math or CS has very little to do with being a portfolio manager, even of a quant fund, let alone being an equity analyst. Look into a book on quant portfolio management and see if it uses anything fancier than math in a rigorous MBA course on portfolio management (Grinold and Kahn is standard). The math you see is probably the least important part of portfolio management too. The real important part is the "finding alpha" part, which you will not learn at all from an MS in Math/CS.

ygmwy · 12/13/13

C S said:
An M.S. in Math or CS has very little to do with being a portfolio manager, even of a quant fund, let alone being an equity analyst. Look into a book on quant portfolio management and see if it uses anything fancier than math in a rigorous MBA course on portfolio management (Grinold and Kahn is standard). The math you see is probably the least important part of portfolio management too. The real important part is the "finding alpha" part, which you will not learn at all from an MS in Math/CS.

Agree. Do not rely on education to become (a) a portfolio manager, (b) a trader/quant trader, (c) rich. Education gets your feet wet. You have to dive in for yourself.

systemtrader · 12/13/13

Thanks for your opinions but are you saying that even MFE / Math/Comp Fin programs that have courses in algorithmic trading or trading systems don't offer much in terms of real applicable quantitative trading education and training?

How about the CQF, I've heard they don't go as deep into alot of the subjects of a Masters program, but they include a lifelong learning experience where you can learn much more than is included in the regular CQF curriculum.

C S · 12/14/13

systemtrader said:
Thanks for your opinions but are you saying that even MFE / Math/Comp Fin programs that have courses in algorithmic trading or trading systems don't offer much in terms of real applicable quantitative trading education and training?

Nobody's saying you can't learn from an MFE type program or that you won't get anything useful out of it.

The question that was asked was whether you should get a Masters in CS or Math to become a portfolio manager. You don't need to take graduate analysis or algebra classes to become a portfolio manager, which is what you'd be doing if you went on for a Masters in Math. Same kind of thing for CS.

Dataminer · 12/17/13

Admissions Advice Online said:
Hello,

As many here have stated, the actual course you select will not guarantee you a position at a bank doing any type of quantitative trading. However, a good degree from a top program will increase your chances. As someone who worked as a trader at a bulge bracket firm for a few years, I know that the most desired traits are quantitative ability along with programming ability. So to this end, a financial mathematics program with a substantial computer programming component such as NYU's, Princeton's or CMU's Financial Maths program's graduates are heavily recruited. - Admissions Advice Online

love your name.

C S said:
Nobody's saying you can't learn from an MFE type program or that you won't get anything useful out of it.

The question that was asked was whether you should get a Masters in CS or Math to become a portfolio manager. You don't need to take graduate analysis or algebra classes to become a portfolio manager, which is what you'd be doing if you went on for a Masters in Math. Same kind of thing for CS.

Guess you can do Masters in OR, if you are interested in optimization,