The Quantitative Developer is primarily a software developer whose role is almost exclusively focused on software architecture and code writing. However, being responsible for realizing models devised by quantitative researchers and other financial market professionals, implementing trading and pricing strategies as efficiently as possible – and considering the technological limits – a QuantDev needs to have a more excellent knowledge of the financial market than other developers.
“A QuantDev works on building all the tools that make it possible to capture and process data, run models, and monitor the applications. Thus, it is natural that this type of developer has more extensive knowledge of the financial market”, explained Stefano Pereira, Quantitative Developer at Transfero.
Check out the skills of a QuantDev
According to Pereira, this professional needs to have a good insight into critical areas in algorithms to decrease delays as much as possible so that their systems reflect the market in the most current way possible.
“In this case, time is money. That’s why QuantDevs need to have a strong background in applied mathematics, statistical models, and extensive knowledge of algorithms, data structures, and numerical computation”, he said.
What are the distinguishing features of a QuantDev professional in the crypto market?
When it comes to computational knowledge, a QuantDev should be multilingual and well versed in various programming languages.
“He should be able to understand model code produced by researchers in R, Python, and Matlab and produce optimized models in performative languages such as C++, Rust, and C#”, said Pereira. “Complex trading applications also require extensive knowledge of software architecture, while programmatic communication with banks and exchanges requires knowledge of data transfer protocols such as HTTP, Websocket and gRPC”.
In addition, as a quantitative developer works in the financial market, it is useful to know the industry relatively well. Thus, one needs to be familiar with terms such as equities, forex, passive income, commodities, and derivatives and understand arbitrage strategies, market making, and many more. In particular, the developer will need to fully understand algorithmic trading modeling and strategies to execute them quickly, efficiently, and correctly.
Overall it is a complex but also rewarding position.
“The responsibility of developing, operating, and monitoring trading and asset pricing systems demands wingspan, as you will be blamed in case of failures. Furthermore, your work is very sensitive to errors: Bugs can result in millions of dollars in losses. Still, a good quantitative developer generates even greater gains and is rewarded accordingly”, Pereira pointed out.
How much does a Quantitative Developer earn?
Due to their job’s sensitivity, specialization, and income, an experienced QuantDev is very well paid. In Brazil, this is still a difficult professional to find, making it difficult to gather data about their remuneration. A single salary registered anonymously on the Glassdoor website in March 2022 indicates a monthly salary of R$ 25 thousand.
On the other hand, considering the U.S. scenario, the same site shows average salaries of US$ 140,000 per year, which can reach up to US$ 200,000 in the same period. In England, London, the average salary is around £90,000 per year.
It is worth remembering that it is common for these figures to refer to the professional’s base salary, and that bonuses are prevalent in the financial world. In general, rewards for this type of developer are high because they directly reflect the significant capital generated during the execution of their systems. For example, at Transfero, considering fixed remuneration and quarterly bonuses, the remuneration can reach between R$ 300.000 and R$450.000 per year.
Blockchain; what now?
By having the expertise in the financial market, the entire skillset of a QuantDev also makes it very useful in the cryptoasset environment.
“The crypto market is probably the most technologically integrated, and its relative ‘newness’ makes it a great target of interest for QuantDev. Furthermore, this sector is in a phase of accelerated growth and, naturally, configures an “unstable” and very volatile market, inviting for algorithmic trading strategies, the field operated by QuantDevs”, concluded Pereira.
If you wish to work in the area, keep an eye on Transfero’s open positions and also on the Transfero Academy’s program for developing new talents. Please send your resume on our careers page and visit our LinkedIn.