Hey everyone, current infosec (offsec) in big tech, wondering how realistic it is to transition to running my own quant fund (equities focus) from infosec, and whether anyone else has done it before? I've played on Quantopian as a hobby between 2017 and the shutdown of the platform, had a bunch of different algos, some of my early ones being high alpha high beta, some learning over time, some failed radical trading strat ideas from unique data feeds, and finally some with Sharpe ratios >3 with very low beta, not backfitted but actual algos based on different fundamental indicators rather than technical ones. Since then I've built a system (my own algo that figures risk based on fundamentals of the business, with a fairly complex multi-leg trading strategy), and I'm trading six figures of my own savings (after living like I was poor for a year, just saving >90% of my post-tax income) on that, +36% YTD with 6% max drawdown. My time in infosec I think has given me a very analytical perspective, and experience with Python, Golang for high performance parallel stuff, DB's, etc. I think I'm on track to reach true financial independence (mid FIRE, neither fat nor barista) by mid 30's by not rocking the boat, but I kind of want more and think I might be letting my potential go to waste by continuing to work in a role where my annualized income gains are measured in single digit percentages, rather than my monthly or weekly yields. Granted, I'm under no impression that I'm the next Michael Burry or James Simons, but I don't want to ignore a potential quant career if that's possible. I am also fortunate to have quite a few high net worth friends that I think I could talk into investing at least $1m with me. I have no debt, extremely minimal expenses (single guy, no romantic commitments + unshakeable plans not to start any, LCOL area [permanent WFH]), and I could get another prestigious infosec job quickly, so it's not like I'm taking a terrifically impactful risk. Is it crazy for me to think about starting my own prop trading firm? I believe I would need to pass a Series 7 and/or Series 65, among other FINRA certifications, but coming from infosec, I'm no stranger to studying for and passing difficult certifications. Would it make more sense to try working for a quant / PT firm first to get a better feel for a business I don't have direct experience with? If so, are a tech background, some really solid algos and both a backtesting and a live trading setup I built for myself, and good past trading performance (with my own real money, not a paper account) a relevant qualification for that or are they going to want a BS/MS in Financial stuff? Am I making a huge mistake by considering trying something so left-field from my current career? I appreciate all feedback. Blind Tax: YoE: 7 TC: 260k
Trader here. What do your risk slides look like? What VaR do you run?
Ride it out when you can.