Everything you need to know to become a quant trader (top 5 books)

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2 жыл бұрын

UPDATED VIDEO: Everything you need to know to become a quant trader (in 2024) + sample interview problem
• Everything you need to...
Ive finally done it. I've summarized the top five books you need to read if you want to become a quantitative trader. I've gone through dozens of books, and here's what you need to break into the space and crush the interview.
www.codingjesus.com
Links below are my affiliate links. Make sure to buy a copy of a book you're interested using the link to help support my channel.
Option Volatility and Pricing by Sheldon Natenberg: amzn.to/3hqRglr
Dynamic Hedging: amzn.to/2TVvgGr
Frequently Asked Questions in Quantitative Finance (Second Edition) by Paul Wilmott: amzn.to/36rvg3E
Python for Data Analysis: amzn.to/2T6F1Bm
Introduction to Linear Algebra: amzn.to/3qXc47m
Advances in Active Portfolio Management: amzn.to/3xwSfpX
Technical Analysis is Mostly Bullshit: amzn.to/2TU3M41
Would you like to join the Patron-only Discord by tithing to The Church of Coding Jesus 💸? www.patreon.com/codingjesus?f...
1-on-1 private resume reviews and career consulting/mentoring 🗓️: calendly.com/coding-jesus
Email: thecodingjesus@codingjesus.com
87wZCoEfvb6AXfJtwwv2EGVc3f6UafSZM39CZ2xRLU1dKvLYK3x6JGbP4bj8iatHdwU3BnSvPfyKPVjwDKBepufSRDT1Kub
In this video I go over everything you need to go from day trading to becoming a quant trader, I introduce 5 books (six books actually). algorithmic trading quant trading and portfolio management everything you need to know like GARCH jump-diffusion black Scholes option greeks closed form solutions arbitrage put call parity cointegration kelly criterion and others everything you need to know interview as quant quant trader quant developer. break into quant trading with these books top 5 books. Day traders trying to break into quant trading

Пікірлер: 449

@CodingJesus 2 жыл бұрын

So anon, will you be reading these books or will you give up on your dreams?

@kyuss0x1 2 жыл бұрын

These books suck you are not real trader lol

@rahulprasad2318 2 жыл бұрын

Bro what are your thoughts on taleb? He is blue pilled on iq question :(

@CodingJesus 2 жыл бұрын

@@rahulprasad2318 He’s blue pulled on Bitcoin. You just take the parts of him that you like.

@optimizedpran1247 2 жыл бұрын

@@kyuss0x1 He isn't a trader but these books are pretty widely read in the quant community.

@pazdowg 2 жыл бұрын

@@CodingJesus CJ, is it true that most firms only hire graduates? Is it possible for someone to transition after a year in another STEM based role?

@rickneibauer1 2 жыл бұрын

I wish i could speak like you. One thing i notice that you are EXCELLENT at is recapping/summarizing or even rephrasing a potentially overly complex idea. You make things very digestible. Thank you!

@galvinng1997 2 жыл бұрын

These books are top notch! Independently arrived at this conclusion from Coding Jesus. Thanks for sharing with the community!

@lallmanish90 10 ай бұрын

five books mentioned in the video: 1. Option Volatility and Pricing by Sheldon Natenberg 2. Frequently Asked Questions in Quantitative Finance, Second Edition by Paul Wilmott 3. Python for Finance by Yves Hilpisch 4. Linear Algebra by Gilbert Strang 5. Advances in Portfolio Management by Grinold and Kahn

@rickyliuna9376 9 ай бұрын

What about General Python (Not For Finance) book?

@Larussiecestlavie 8 ай бұрын

ty bro

@gregorybennings8718 8 ай бұрын

Which book do you start with? What level of math do you need? I tried reading the Wilmott book and was confused.

@MK-yg7zf 8 ай бұрын

Not a good move. Not a good move at all. Respect the content creators and the effort they put in.

@gregorybennings8718 8 ай бұрын

@@MK-yg7zf Took me 5 seconds to read that comment as opposed to 17 minutes to watch the video. It's a very good move, and an efficient use of time.

@ganeshshetty625 2 жыл бұрын

Thank You for the recommendations Coding Jesus!

@yochonon4728 Жыл бұрын

Just discovered your channel, will be buying all these books, hope you keep posting.

@Jean-Berry 2 жыл бұрын

So happy to see you recommend linear algebra by strang and linear algebra done right. They are very underrated

@jongxina3595 Жыл бұрын

ladr is awesome!

@chrstfer2452 7 ай бұрын

Read the linear book ages before i decided to be a quant, and watched all the lectures. *HIGHLY* recommended.

@juan3551 2 жыл бұрын

I love all the information you give us and the peace you emanate through your videos ❤

@avgb2115 2 жыл бұрын

The video and information i was searching for weeks...I just can't thank you enough...👌👌👌

@avgb2115 Жыл бұрын

@@condingjesus1...me...written

@conorlynch6711 2 жыл бұрын

You are awesome man, such good content for individuals looking to break into the field. Keep up the great work.

@strategy_gal 2 жыл бұрын

Thanks for the recommendations! These are good ones!

@abhijitkulkarni2504 2 жыл бұрын

Awesome CodingJesus.Thank you.

@omarespino964 Жыл бұрын

Thank you for your INSIGHTFUL advice!

@BryWMac 10 ай бұрын

returned to school to study math after starting my CFA journey and mainly liking the quant section, feeling lost thank you for this

@itooflemma 8 ай бұрын

Good choice, get the PhD in applied Maths and quant finance won't be as hard to dive into. Personally I just did a MFE to skip 2 years.

@teenspirit1 Жыл бұрын

Python for data analysis is so hardcore, it starts off with time zones. The first thing you need to know about programming if you are trading a global set of futures.

@ssublexff3465 6 ай бұрын

Linear Algebra as a Software eng student is the best part and probably the most used part of math in most of the fields. That involve eng or econonmics. It is surely beautiful and if you take time to understand the concepts you will get to love it

@inconnuxtd 2 жыл бұрын

bruh this channel is pure gold, i found it by chance

@ropirito 2 жыл бұрын

Hey Coding Jesus, thank you for all of this info in a straight forward way! Are there any certifications you would recommend we should get that would help get interviews in the quant space?

@user-hj2ls6gz3j 4 ай бұрын

Awesome Vid, Colin Bennett - Trading Volatility is a life and time saver and deserves credit. thx

@sonuga 3 ай бұрын

This should have a thousand likes...lol. Indeed a time saver. ✅✅

@jgfunk 2 жыл бұрын

I read that first book like it was one of the books of A Song of Ice and Fire. Plowed right through it. Loved it.

@bruvhellnah Жыл бұрын

What prerequisite one must have before reading that book? I'm a recent computer science graduate.

@jgfunk Жыл бұрын

@@bruvhellnah basic math and analytical skills.

@BreezeTalk 2 жыл бұрын

This is awesome dude, thank you so much

@abuusayd1932 2 жыл бұрын

I'm trying read these books and work on the skills they are trying to teach their readers before I get into college

@carolbricker4434 2 жыл бұрын

Thank you. Love your videos

@jsha129 Жыл бұрын

Love Linear algebra by Strang. Probably one of the best books on applied linear algebra..much better than linear algebra by Anton. Linear algebra done right is good but it focuses on too much pure mathematics instead of applications.

@christopherlucas1475 8 ай бұрын

Strang also has (bit older) course on MIT OCW that uses his book. I love Gilbert Strangs' approach. Got me through my undergrad LA course

@locallyringedspace3190 7 ай бұрын

Linear algrebra and learning from data is another more recent (2019) book by Strang that I think is incredible. It has a much more colloquial tone and is an excellent read for a 2nd or 3rd pass of the subject.

@richardwalcott6373 2 жыл бұрын

Good vid. My favorite is dynamic hedging. I first got introduced to nassims work after follow from reading Mandelbrot’s work. Very good book man. I would also suggest Mathematical Modeling And Computation In Finance by Oosterlee and Grzelak. I recently finished that i its pretty comprehensive. And the math is more applied than theoretical. Keep up the good work !!

@sidddddddddddddd Жыл бұрын

And the best part about the second book is that he has two playlists of video lectures based on part 1 and part 2 of his book.

@coleyoutubechannel 2 жыл бұрын

Thank you thank you thank you!!!!!!! Your videos are super helpful I really appreciate it

@sentralorigin 2 жыл бұрын

my top 5 are: 1) Harris - Trading and Exchanges 2) Sinclair - Volatility Trading 3) Taleb - Dynamic Hedging 4) Hull - Options, Futures, and Other Derivatives 5) Natenberg - Option Volatility and Pricing

@moal5673 2 жыл бұрын

Hull is the bible in my firm

@khoadoan8966 2 жыл бұрын

Hull is so godlike, it's the first book I've read and a reference for me until now

@CodingJesus 2 жыл бұрын

Sinclair’s felt way too choppy. He jumps from idea to idea in the span of a paragraph. Hull is too dense. I prefer the intuition to the theory. Taleb and Natenburg are my go-to.

@robertmazurowski5974 2 жыл бұрын

@@CodingJesus "I prefer the intuition to the theory" That is the language of technical analysis, Please stop doing this. Did you listen to the guy in the videos? Just watch a couple of videos.

@gwagon3268 2 жыл бұрын

@@robertmazurowski5974 basically this guy is a complete hypocrite

@thegreatbambino3358 Жыл бұрын

Gilbert Strang's linear algebra course on open course ware is a must

@MrGlujaN 2 жыл бұрын

Thank you I was looking for that books for a while 🤠

@kilocesar 7 ай бұрын

great content man!

@gamingandgunpla 2 жыл бұрын

You know what makes your channel attractive to me? The lack of sensationalism. You're very cut and dry with what you're conveying. Anytime a youtuber uses sensationalism I am automatically skeptical. Sometimes it may just be their personality but with all these "Day Traders" selling their courses it's hard to not be suspicious.

@master1dead2 Жыл бұрын

Yeap 🫶🏼

@WhatsNextFam Ай бұрын

Such a back handed compliment , you’re pretty much saying you like him cause he’s boring 🤣

@jigmet70000 2 жыл бұрын

THANKS! a lot for sharing 👍

@janjonelcoronado9578 2 жыл бұрын

Thank you Coding Jesus! I'll recommend your vids to my friends.

@riankashyap1996 2 жыл бұрын

This is beautiful. Thanks for being the light amongst the darkness @CJ.

@raywhyms8441 2 жыл бұрын

He is the darkness.

@kaushal.mp4 2 жыл бұрын

*@**1:28** min, You Really Cleared Off My Biggest Doubt Man! It was Huge Thought Relief Jesus!*

@unclek7175 2 жыл бұрын

Thank you, Coding Jesus!

@pegion89 2 жыл бұрын

I coded technical indicators to get into trades and its been good so far.. Been 6 months.. I am only taking swing trades .. Will read through these for sure

@nikolaiknight3606 Жыл бұрын

What language did you code these indicators in?

@pegion89 Жыл бұрын

@@nikolaiknight3606 python

@pilotgfx 9 ай бұрын

@@nikolaiknight3606 yes

@tylascraig9306 Жыл бұрын

I already had Natenberg's book on the hit list because I've loved options for 2 decades now. I went ahead and added all of them to my Amazon book wish list except for Technical Analysis is BS. I just discovered your page, and I have doubts about you buddy. I did like the vid though.

@wajdanali1354 2 ай бұрын

I noted these "Option Volatility and Pricing" by Sheldon Natenberg "Dynamic Hedging: Managing Vanilla and Exotic Options" by Nassim Nicholas Taleb "Frequently Asked Questions in Quantitative Finance" by Paul Wilmott "Python for Data Analysis" by Wes McKinney "Python for Finance" by Yves Hilpisch "Linear Algebra" by Gilbert Strang "Linear Algebra Done Right" by Sheldon Axler

@yelp70 2 жыл бұрын

Thank you kindly for sharing these books. Regards from Sydney Au.

@LukeStevens-cz3dr 4 ай бұрын

Hey Coding Jesus! Do you think that Hull' Options, Futures, and Other Derivatives could replace Natenberg's book? Or at least is it a book you'd suggest for a quant library?

@zg7860 2 жыл бұрын

thanks for the content, like really man thank you

@adam4311 Жыл бұрын

thank you for this information

@duyou2276 2 жыл бұрын

Hey, Thanks your the content. Can you please make the same kind of video for Quant researcher.

@travelallarici 5 ай бұрын

Thanks for sharing Mr Jesus

@cryptocarnivore1776 Жыл бұрын

Thank you so much!!

@umarahmed27 2 ай бұрын

Fantastic video

@MLAlgoTrader 24 күн бұрын

Wilmott book is the best!

@quriositysquared1028 2 жыл бұрын

Thank you man

@manueldecara1119 2 жыл бұрын

Can't wait

@fminc 2 жыл бұрын

Euan Sinclair, the zenith of options trading. Positional trading is really good too.I read Natenberg a couple of decades ago, but I didn't revisit it, cause he spent a lot of time on interest rates, which obviously don't matter. Gonna read it again. after this video. Thanks for the work kid. (I don't mean any disrespect with using the word "kid"). I never got past the 5th page of Taleb's book (he is a fav of mine, watch his black paper on Btc), lol, gonna try and hack its again. Wait, wtf happened, I could have sworn I saw a Sinclair book at the beginning, glitch in the matrix ?

@evanchua7614 2 жыл бұрын

Hi CJ for option volatility & pricing , there is a new edition should i read the new one or the edition you recommend?

@vaibhavsalokhe7603 2 жыл бұрын

The market variables in quant trading just seem really intimidating

@NutsAboutData 2 ай бұрын

With all your blessings I shall prosper on this!

@johnbarrero70 7 ай бұрын

Awesome channel

@patrickdurdenman7221 6 ай бұрын

Ridiculous my Friend, need to obtain all of those since it's exactly my goal to break into this field :-)

@optimizedpran1247 2 жыл бұрын

Question for CJ: at quite a few firms, it's reported that junior Quant-Devs have a much higher base than junior quant traders. Could you talk about this? I've heard that depending on the firm culture and strategies, sometimes it's the devs who are valued more whereas the traders are simply sitting in a chair staring at risk charts on software built by the devs.

@CodingJesus 2 жыл бұрын

You are right. Traders have lower base but higher bonus since their employment is a lot more contingent on performance.

@user-gy7cy7os7g 2 жыл бұрын

@@CodingJesus How do quant firms make most of their money? Is it arbitrage or just capturing the bid ask spread?

@gabrielrodriguez8187 2 жыл бұрын

@@user-gy7cy7os7g depends on the firm and desk, I know that JS does some of this but that isn’t their main thing as they aren’t a HFT firm

@user-gy7cy7os7g 2 жыл бұрын

@@gabrielrodriguez8187 Interesting! I think what CJ does at Akuna will probably be vol arb the difference between implied and realised vol.

@mikeygifford 4 ай бұрын

Nice! I’ll look into pandas instead of using lists and dicts. Maybe I can calculate probabilities easier that way

@Jubeininja1221 Жыл бұрын

hey coding jesus. What level math do you need to be a quant trader? thanks for the video!

@edgarusg6239 2 жыл бұрын

this is the video i was waiting for, thank you jesus!

@pw6790 5 ай бұрын

thx for sharing

@rajtanwar5650 Жыл бұрын

Please make a review on the book Kelly criterion and fortune's formula. These are also underrated concepts in trading.

@AB608052 3 ай бұрын

I got it now, I've been managing a online account now, for maybe 6 months. High frequency trading, it already sounded like a cheaters way. In the book about ADT, yeah, the guy says he came up with high frequency trading when he was high.. or he felt he confirmed the idea when he was stoned.. so I said, this must not be the method of a confident man! Right, so, you can sit at the bottom of the order book, doing 1 share at a time.. the regular speed algorithms everyone else is using will keep the order book nice and neat, and you can acquire or unwind at the same price as a small time trader. I was going to buy a book about it, I probably still will

@kushyglowy8409 6 ай бұрын

Saving this

@ericpezone7478 11 ай бұрын

@CodingJesus what do you think of the book 'Machine Learning for Algorithmic Trading' by Stefan Jansen?

@schrodingerscat3912 Жыл бұрын

like that chibi sized humble trader plug

@upstateNYfinest 6 ай бұрын

Hey coding Jesus, I'm about to complete the CFA. Do you have any hot takes on it?

@IbnuNurHamzah 9 ай бұрын

Jesus.. thank you for your info! I would try to look at those books.

@paoloottimo6358 2 жыл бұрын

thank you coding Jesus!

@Pkmafffy 2 жыл бұрын

TL;DR I have the correct back round but have been working as a data scientist for 3 years. Do you think I can become a quant still? I has a first class masters in mathematical modelling from a UK top 10 uni which focused on fluid mechanics with one quant finance course which I got 81% in. I finished this 3 years ago and have been working as a data scientist ever since. I am coming to the end of being 26 years old and have been learning c++, been working through 'Hands on Machine learning for Algo trading' by Stefan Jansen, and am going to start reading the first book you mentioned and the book by Paul Wilmott. Do you think I still have a chance to get a job as a quant analyst or trader in the next 18months? Also, you content has really helped me so good job!

@anthonyhall7449 2 жыл бұрын

Yes! Go for it!

@seigemain 9 ай бұрын

Any updates ?

@PhrontDoor 10 ай бұрын

Strang just retired. Got to see his send-off in person. He rocks.

@ericmotocross 10 ай бұрын

You go to MIT?

@PhrontDoor 10 ай бұрын

@@ericmotocross Went.. long ago. Got an invite to Strang's send-off and couldn't bear to miss it.

@preetijoshi1437 2 жыл бұрын

Hi. Thanks for great info on books. Just a question.. Do we need to read these books if we are CFA.. I mean does CFA cover almost everything what's in those books?

@crentistDaDentist Жыл бұрын

@rawsteel6443 2 жыл бұрын

Hey coding jusus, is it possible to use the knowledge in these books for personal trades and become a full time trader, or do you have to get a job at a htf firm because it's a retail trader does not have the infrastructure to execute trades in nanoseconds?

@randomdude79404 2 жыл бұрын

Good question +1 !

@raywhyms8441 2 жыл бұрын

If you want to be a retail trader stay away from options. Start with equities then after you get experience move onto futures. Avoid scammers on KZfaq, including Coding Jesus. Don't read books on Portfolio management if you want to be a trader. Books on linear alegbra, python and data science are useful for testing ideas, and algotrading. Don't bother reading those Options books. The book on TA being bullshit is not true. There are many chart patterns that are a waste of time (fibonacci etc..), but TA is not a waste of time. Read market wizard books for the legit verified traders that have used it.

@richardwalcott6373 2 жыл бұрын

@@raywhyms8441 the TA ur talking about that works is trend following, which isnt really considered Technical analysis. And trend following only works in periods of high Autocorrelation (you can test this yourself dicky fuller,acf etc) and that need external datasets to forecast (Investor composition, institutional strats, HF composition etc)

@SantoshLLC 2 жыл бұрын

@Lelouch the Douche don't trust him

@mvl3379 2 жыл бұрын

@Lelouch the Douche the (losing 99%) retail trading worshippers/shills get butthurt by his last video. They refuse to acknowledge facts and statistics as usual.

@mokivalantine2208 Жыл бұрын

thanks very much

@pietroghsvf 3 ай бұрын

Even you read the books and know everything, how would you get them to actually read your CV or to consider you if you're not already in the field either academically at university or professionally?

@RuneCutter456 2 жыл бұрын

What math prerequisites do I need to start reading option volatility and pricing strategies (currently in my final year of engineering)?

@Qliphirot 2 жыл бұрын

Arithmetics and Algebra

@julianbeatty2909 2 жыл бұрын

Calculus 3, intermediate statistics, some linear algebra.

@amolgupta8894 2 жыл бұрын

Can you please point to some reading content regarding some HFT strategies? I am aware of some very basic arb strategies and content beyond that seems to be too math-heavy.

@AB608052 2 ай бұрын

I.e. black scholes. Setting prices with historical volatility makes some sense, but if the prices have a obvious trajectory would you still do it? So then the volatility is "implied".. ok? But then really a good strategy in options is to sell contracts and buy them back.

@iroegbulevi87 9 ай бұрын

@codingJesus pls it's not clear to me. Is Quant trading same as high frequency trading?

@SuperReddevil23 2 жыл бұрын

I read Monte Carlo Methods of Financial Engineering by Glasserman, for my quant interview

@melissariley4648 Жыл бұрын

love it

@erikanderson1402 9 ай бұрын

“How to use computers to put unnecessary strain on our credit structure!” Brilliant

@reflective-thinker7817 4 ай бұрын

No one can predict what will the stock market behave tomorrow and quant analysis is a very sophisticated way of speculating (advanced linear algebra with stochastic calculus can’t predict the future guys 😮😮😮)

@preetirani9108 2 жыл бұрын

I am excited

@raywhyms8441 2 жыл бұрын

Don't be. Coding Jesus is a fraud and a pervert.

@SantoshLLC 2 жыл бұрын

@@raywhyms8441 Idk for pervert but as someone working for a big institution in this industry, I have difficulty trusting someone like him who pretends to be a quant dev (without any proof) and who calls himself "coding Jesus", who is rude and arrogant, it looks like he's trying to create a cult. Just blocked this channel, you should do the same :) If he really is a quant dev, he probably does not work in a large firm and therefore has limited knowledge on this subject.

@seigemain 9 ай бұрын

2 years later, any progress ? @preetirani9108

@lovepreetsingh8498 Ай бұрын

whats the difference between quantitative trading and day trading? Coming from the video you talk about why not to be a day trader.

@ahsamv1992 2 жыл бұрын

hi CJ I am Eddie_83 just joined your discord. I was actually was about to ask you a question then you answered with a video. thank you

@Brain.00005 2 жыл бұрын

Can you talk about the work life balance for a quant??

@gabrielrodriguez8187 2 жыл бұрын

Hey coding Jesus would you happen to have a good recommendation for a probability and statistics book?

@CodingJesus 2 жыл бұрын

Books on probability and statistics beyond your first year statistics course are more suited for quantitative researchers. That’s why I didn’t feature one here. It’ll be the topic for another video.

@SantoshLLC 2 жыл бұрын

@@ishaananand4779 Ask an ACTUAL quant analyst

@spyrex3988 2 жыл бұрын

wish someone made a video like this on graphics programming

@ryanhuang6318 6 ай бұрын

If the whole purpose of studying and understanding quant trading is to enjoy an exponential growth of your wealth, then why not trade for yourself at home instead of looking for a job trading for a firm? Since jobs offer you salaries which is linear growth, wouldn't it defeat the whole purpose of learning about quant in the first place?

@scamperooniespanker8736 5 ай бұрын

lol the pic at 10:28 looks like the optiver office in the prudential building

@gmmkeshav Жыл бұрын

Can you please tell the names 1:30 please I like reading complicated stuff Thank you

@mehmet24a 2 ай бұрын

excellent

@AutobotsTransform 4 ай бұрын

You are too amazing

@flippantfishtaco3132 2 жыл бұрын

I think you should consider adding The Black Book of Financial Hacking by Johann Christian Lotter. I finished this one recently and it has made it much easier for me to approach some of these extremely technical issues that are in these books you're recommending. Also, it's written for those of us who want to build our own trading systems for trading our own money, and some of these books you recommend probably don't have that audience in mind.