mblem22
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| Total Posts: 8 |
| Joined: Jun 2012 |
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Hello all. I'm new here and I'm looking for a little advice.
I should start by saying that I am 22 years old and recently graduated with a BS in electrical engineering. I landed an entry level engineering position. It's a nice place to work, but not at all intellectually stimulating.
Throughout college, I had very strong abilities in mathematics and computer science, and as a result, I took many more CS classes than a normal EE student would. I took classes in AI, signal processing, and software development. I have done a lot of coding and actually enjoy it.
I have recently become interested in finance and the application of my CS skills to trading strategies. I even started writing some finance software during my lunch breaks at work.
My questions are as follows:
1. What are my possibilities and prospects if I continue to pursue finance part-time, while still working at my current job?
2. Is it at all realistic to imagine that I might develop software effective enough to quit my job and make a living trading? I am basically broke after recently graduating, but my savings account is growing quickly from the new job.
3. Is it realistic to imagine selling my software/services? This would be a dream come true.
4. Lastly, I am starving for more education in CS based trading, especially with regards to AI and optimization. Can anyone recommend any good books or learning materials on the subject?
Thanks very much for taking the time to read this. I sincerely appreciate any advice, as I have found it difficult to locate a good source of guidance on the subject. I look forward to contributing to this forum and possibly collaborating with some of you.
Best Regards,
Mike |
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What software are you speaking up? No one sells strategies.
1&2 You are competing with people who do this all day long and have greater resources then you do. It is not very realistic. That being said I personally know a programmer who has done this.
4. You won't find good resources on CS based trading. |
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mblem22
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| Total Posts: 8 |
| Joined: Jun 2012 |
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Thanks for your response.
To clarify, the type of software that I am working on combines many techniques of market analysis and portfolio optimization, and uses an artificial intelligence model to generate trades based on the results of all the other analysis techniques. I had hoped that once it's complete, I could use it to trade my own funds, and if it proves to be lucrative, get backing and a cut of the profits from an actual firm.
Would you mind giving any more details on the programmer you know who has had success with a part-time commitment to finance?
Why is it that I wont find good resources on CS based trading? Is all the research and technology proprietary? There must be at least some good textbooks on the subject. |
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*If* you are profitable, then it is definitely able to be sold to a fund. Again, it is not easy and there are a lot of common pitfalls outsiders get caught in. Also, its really hard to do this as a non full-time job. (At the very least, you will have to always be on call.)
It's nothing worthwhile really as he had money and has been somewhat profitable. He worked in finance went back to med school. He now spends a good amount of time writing automated strategies managing his and friend's money (under a partnership agreement). I was just saying its possible. I believe he used one minute bars from his broker.
Very few things worthwhile are published in the field. I know of no good book on AI in trading.
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mblem22
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| Total Posts: 8 |
| Joined: Jun 2012 |
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Interesting. I think my plan will be to continue pursuing it part-time, and if it proves successful, I will take the plunge into a full-time effort.
Thanks again for the advice and info. |
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The problem with running part time is issues happen. (Bad prices, missed corporate actions, all sorts of issues with bad data.) Hell, I have had my connection from my office accidentally cut by construction workers on the street.
You can do it part time and work as long as you have access to your strats and can leave what you are doing to go back to it. I am not saying you need to babysit, but know that urgent issues will arise and plan on it. My first attempts in automation were in undergrad. The goal was "set it and forget it," experience tells me otherwise. |
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mblem22
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| Total Posts: 8 |
| Joined: Jun 2012 |
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In addition to my bachelors in electrical engineering, I am considering an MBA with specialization in finance. This would advance my current career while allowing me to continue exploring the field of finance. There is also the added bonus that I can get full tuition reimbursement from my current employer.
What kind of opportunities/prospects in finance would be open to me with a BSEE and finance oriented MBA? Is this kind of masters degree at all desirable in financial circles? |
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sasquatch
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| Certified Headhunter |
| Total Posts: 308 |
| Joined: Aug 2006 |
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| Personally, I am not an advocate of an MBA - unless you're in a sales / account management career track or if you're looking for an executive-type job. I am definitively more in favor of pursuing the MS / PhD track. |
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Jim
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| Total Posts: 158 |
| Joined: Jun 2004 |
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A Masters in Computational Finance would be more helpful than an MBA for a career switch into computer-based trading, but if your employer will pay for the MBA and you have the patience to do something like that part-time, I'd say go for it. There are many classes you could take during an MBA that would make finishing a second MS in comp. fin. a snap.
There are a number of AI in financial markets books out there. The question is whether they are any good. Anyone who makes money doing it isn't going to write about it and reveal the secret recipe. But at least by reading about it you can find out what has already been tried.
Lastly, as R&B mentioned, it is very different between writing some code and paper trading the results versus actually having your own money at stake. I suggest you set aside some capital you could afford to lose (like money for a vacation that if you lose you can't go on the trip), and try out your trading strategy on a small scale. The experience you gain would well be worth what you could lose.
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