A Kronos Quantitative Researcher — not just a Trader, but half- engineer, and half- trader!
What does being a Kronos Quantitative researcher entail?
Quantitative trading
“Quantitative trading” is a mysterious field, one that many do not understand. In this series, we will unveil various jobs at Kronos to help you better understand what goes on behind the scenes. Through our colleagues’ own words, you will get a glimpse of the quantitative trading industry!
As an industry-leading quantitative trading company, the ‘technology’ and ‘research spirit’ of quantitative trading are our core strengths. We are constantly looking for ‘quantitative researchers’ with both technical strength and creative thinking. This time, through the words of our researcher-John, you will see how fulfilling and challenging research work is!
John: “Not just a trader — we are “half- engineer, and half- trader”
“Quantitative trading means to backtest and verify a trading strategy through computer programs. After confirming the strategy can make a profit, the program runs trades according to its defined rules. Therefore, quantitative researchers are half-engineer, half-trader. In addition to having a passion for trading, we also need to have outstanding coding skills to write the most suitable programs based on the most effective strategies.
For Kronos researchers, our goal is to establish trading strategies through continuous market research and then conduct ‘HFT’ (high-frequency trading) through programs to maximize the company’s profits. Our work can be divided into research data, drawing up trading strategies, and coding for automated trading.
1. Research data
In the research work, we will find the most suitable signal by observing the data to optimize the company’s forecast signal — known as Alpha.
2. Draw up trading strategies
We establish a “trading strategy” based on Alpha, discuss it repeatedly with team members, use experimental models to test it, and determine the final strategy based on analysis of the results.
3. Coding for automatic trading
Finally, we use trading strategies to write programs for automated trading and continue to optimize the strategy based on trading data.
It is obvious that “coding” is a very important skill when we conduct transactions. Whether using large amounts of data or machine learning, we need to have top programming capabilities. Therefore, we are not only traders but also engineers!”
A quantitative researcher’s day is a constant race against time — what does a day in the life of Kronos quantitative researcher John look like?
8:00–9:00 AM Check the latest trend of the market and fix errors
“The cryptocurrency market is 24/7 and we use HFT (High-frequency trading) strategies to navigate the market. Fixing real-time issues is the key to successful transactions. For example, a few days ago, Bitcoin suddenly soared to 40,000 US dollars. When the signals were similar, the market direction was clear and the strategies of other partners were profitable. While I should have also made a profit, I didn’t. After diagnosing the problem, the team immediately began to discuss and eliminate errors.”
9:00–10:00 AM Reconciliation, confirm that the trading results are correct
“After eliminating the most urgent problems, we would check the execution results of the program from the previous day to confirm whether the transaction is consistent with the company’s accounting record. The main reason is that some cryptocurrency exchanges use data loopholes to sell currencies at a price slightly higher than our set price, so the set profit and accounting are different. To prevent similar situations from happening again, this confirmation action has become a daily routine.”
10:00–11:00 Check the production log and resolve the error message
“When running the program, we record all the details in the “production log”. The program gives output and messages the next day, and we would analyze these results and correct the error messages. Sometimes there are problems in the program but no error messages pop up. If this happens, we would review the transaction log to find possible problems and solve it.”
11:00 AM-12:00 PM Regular team meeting with our boss
“In the weekly meeting, we report what we have done this week, and also share the recent market trend. For example, the boss was very excited to discuss the application of NFTs and DeFi with us last time. In addition, we would also discuss the latest research directions and suggestions at the meeting, and any wild ideas would also be put forward at this time.”
1:00–5:00 PM Routine work and innovative research
“After dealing with all urgent work items in the morning, we would focus on updating the strategy model and conducting market research for the rest of the day. Because the cryptocurrency market is volatile, we must adjust the parameters with the market trends, so we need to update the strategy model frequently.
In addition to constantly optimizing existing strategies, we would also brainstorm new research directions and conduct complete simulation experiments based on these new ideas. Recently, I was studying the correlation between market growth and a new indicator. After running trading procedures, backtesting, and eliminating the noise in the financial market, I repeatedly verified the hypothesis to determine whether this indicator is suitable for our strategy”.
“The most unexpected creative strategies often come from intense discussions among colleagues”
“Quantitative trading is rare in Taiwan, not to mention quantitative trading of cryptocurrency, which really highlights our uniqueness. However, it is precisely because of the scarcity of this industry and technology in Taiwan that many experts who are passionate about quantitative trading have chosen to join Kronos. It also gave me the opportunity to discuss and learn from my talented colleagues and bosses.”
“In addition, Kronos colleagues are not shy about challenging each other’s ideas. What impressed me was that not long after I joined, a team presented a new strategy at the meeting. When the host shared the key points of the trading strategy, the colleagues pointed out the omission of this strategy and the uneven distribution of the probability of the key data in the market. However, compared to only asking questions, each of the 6 or 7 partners in the meeting suggested their own version of the code and possible solutions! After repeated revisions on the whiteboard, a strategy that was completely unexpected at first appeared, and this strategy was tested by the market and demonstrated excellent performance. I feel that everyone on the team is working hard to make the company better and I am proud of being a part of Kronos!
If you are also interested in quantitative trading and want to compete with experts in such a fast-paced environment, then I believe Kronos is definitely your best choice.”
Think you have what it takes?
Think you have what it takes to be a Kronos quantitative researcher after hearing some insights from John? Come up with top-notch trading strategies in Kronos and send in your resume now! 👏 If this sharing is helpful to you, click 50 claps and give us some encouragement! https://bit.ly/Quantitative_researcher_eg
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