Lead Trader and Research Assistant (Part 2)

I recently wrote about a second job that seemed very appealing as a formal introduction to working in the financial industry. My cover letter is below.

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To Whom it May Concern,

I am writing to apply for the position of Lead Trader and Research Assistant.

After working as a staff pharmacist and pharmacy manager, I retired at the age of 36 to start a securities trading business. This has been a journey without clients or co-workers that has required extensive self-study, intrinsic motivation, and outside-the-box thinking. I have since learned a great deal about the mechanics of trading and investing. Having risked my own hard-earned capital to learn the craft, I now seek to manage wealth for others.

I feel my experience is something of a contradiction. I have never worked publicly for a financial firm, but I probably have more trading and portfolio management experience than the vast majority of industry participants. Trading has been my sole source of income for the last 12 years.

I have given extensive consideration to a potential career in the financial industry. I have researched the possibility of starting my own hedge fund, working as an IAR, or managing money for a family office.

I suspect the kind of trading I do for myself would not be appropriate for most clients of an IA. Accredited investors aside, I may never trade an option for the firm’s clients due to suitability standards. If options can be used in client portfolios, then I would be very eager to work together in designing viable strategies. This is not my expectation, however.

Regardless of derivative suitability, one topic for discussion is whether my nearly 20-year experience trading stock and derivatives can be marketable for the firm. I want to believe it can and would be very interested in talking this through.

My journey as a full-time trader has [by necessity] put me on a quant-related path. Over the last two years, I have invested in additional education to better understand and immerse myself in algorithmic strategy development. Overfitting is a nemesis that requires constant surveillance. A curve-fit system will look great and convince casual observers, but performance at the hard-right edge is likely to disappoint.

Aside from developing trading strategies, I hope to soon research potential benefits of combining asset classes. While “diversification” has been a prized industry buzzword, I am not sure it is as simple as being plucked out of thin air. Backtesting can be done with Excel VBA, but I think greater potential exists with Python—–a versatile programming language I have made decent headway getting to know in recent months.

As with options, my foray into algorithmic futures trading may not be suitable for client accounts. The work certainly falls in the realm of both research (backtesting) and trading (“Lead Trader and Research Assistant”). Although not expected, I would jump at the opportunity to work with a team in developing diversified futures portfolios.

I am willing to pursue further credentials that may be valuable to the firm in its dealings with clients. I have passed the Series 65 twice and am no stranger to exam preparation (Pharm.D. graduation and NAPLEX). On my own, pursuit of further credentials (e.g. CFA, MSFE, CFP) has been difficult to justify since I have been able to cover living expenses on trading profits alone. As the most highly regarded sign of success for a retail trader, this achievement makes me both thankful and proud.

I have attached a résumé for a more detailed review of my education and experience. My e-mail is {1}, and my phone is {2}. Thanks for your time and consideration!

Lead Trader and Research Assistant (Part 1)

I recently thought I found my “dream job” but, as described here and here, that did not work out. Today I want to discuss another job opportunity that just made it to my inbox.

Here’s a job description for Lead Trader and Research Assistant:
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The trader/research assistant position focuses on… trading funds in our client accounts and researching for our investment committee as directed by our CIO. We are specifically looking for a tech savvy candidate who has extreme focus and attention to detail but is ready and able to work under pressure. It is also essential that this person can work independently, meaning they can be trusted to focus on work during work hours (putting the cell phone aside) without having to be supervised. As a company we strongly believe the best team members do not need to be managed, they simply need to be supported. We expect out of the box thinking and problem solving, this team member will always have the benefit of a team but should be able to work through issues independently as well.

Duties include but not limited to:

• Trading client accounts
• Monitoring money coming into and going out of client accounts
• Assistant researcher to our CIO, doing research and preparing results for investment committee
• Creative thinking and problem solving skills, each case will present its own unique variables and challenges, it is our job to do the heavy lifting so that our clients don’t have to
• Learn and become proficient with all technology partners [including] E-Money Financial Planning Software, Morningstar Advisor Workstation, Wealthbox, and Riskalyze
• Work cooperatively with entire team to learn systems and processes

Qualifications:

• Background in finance preferred but not required
• Basic understanding of taxes
• Attention to Detail
• Great Communication Skills
• Organized, Efficient, and Professional Work Ethic
• Must be a cultural fit

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Unlike the last job, I think I meet all the qualifications for this one:

• All I have been doing for the last 12+ years is mastering my ability to work independently (also one reason I’m applying to work with others since—as mentioned in this fourth paragraph—I miss my co-workers and clients from time to time).
• I can focus on work during the typical 9-to-5 (and beyond).
• Having been my own boss since the first day of 2008, I certainly do not need to be managed.
• The host of packages listed on my résumé demonstrates my ability to learn new software over the years.
• With regard to wealth management, I feel like trading options is far “outside the box” (see this mini-series).
• This blog is a prime example of my attention to detail; hopefully I have caught all the typographical errors!

Although job applications are no longer being accepted, I will continue next time with the sort of cover letter I would submit.