Introduction

Until recently, trading occurred on a physical trading floor where traders gathered together in trading pits to buy and sell financial instruments. Traders would negotiate prices and trade with each other via face-to-face communication in a designated area on an exchange. The rise of electronic trading platforms has led to the decline of pit trading, replacing human interaction with low-latency ultrafast connections to exchanges. This shift also led to the formation of quantitative trading firms, with small headcounts and disproportionately large profits, which have come to dominate the global financial landscape. These companies use advanced technology and mathematical techniques to profit from the competition. Quantitative trading presents a lucrative opportunity for those with a background in science, technology, engineering or mathematics. Universities rarely offer all of the prerequisite skills and knowledge to start a career in quantitative finance. FutureQuant contains everything you need to know to comfortably pass an interview and get a job in one of the highest-compensating industries in the world.

Whereas traditional trading methods primarily rely on subjective analysis and intuition, quantitative trading relies on the power of quantitative models and algorithms to analyse vast amounts of historical and real-time market data. These models are designed to identify patterns, trends, and statistical anomalies that can be exploited for profitable trading opportunities. At its core, quantitative trading seeks to remove human emotions and biases from the decision-making process, replacing them with objective, rule-based strategies. This approach not only enables traders to make quicker and more precise decisions but also allows for the exploration of strategies across diverse asset classes.

As technology continues to advance, machine learning and artificial intelligence are increasingly incorporated into quantitative trading strategies. These technologies enhance the ability to identify complex patterns in the market, optimise trading models and adapt to changing market regimes.

The following course aims to build your intuition for why modern markets work and what purposes quant firms fulfil: to pique your interest in your future job, to help you understand the incentives and strategies of your future employers, and to directly inform your decisions in the market-making games that many firms use as part of their interview processes.