Quick background: running a CTA using technical models developed over time after coming from discretionary prop trading. Work with a few allocators who have seemingly been happy with performance so far.
At the beginning of the year, one of the allocators asks me if I'll work with this "new talent" he's found and wants to cultivate. I agree under the conditions that he have nothing to do with my current programs, and then maybe we can develop something together. At the time I figured what the heck, the allocators paying him and I want to keep the guy happy.
So the quant comes into the office for the past 2 weeks and so far all I know is that he is good at getting lunch and bad at making restaurant reservations! So now what?
I've worked with quants before who were either introspective like rainman or hyper to the point that they were seemingly on some combo of crystal meth and jolt cola. But this guy is just a zombie, doesn't speak at all, and hasn't done a thing yet. I was expecting him to just come in and do his thing, maybe I'd pull his head out of the sand every once in a while, and teach him a little bit about trading.
While this has been mildly amusing for the past few weeks, I'm now starting to grow slightly concerned if asked for a progress report. The allocator knows that I am not a math guy, so I'm not certain how to lead this guy.
So what should I have this guy do? I've got access to good market data, but what relevant stats should I have him compile? My thought was to just have him calculate a bunch of stats and then try to find some statistical significant relationships that could potentially be traded off of. But where to begin?
I will share the results of his findings with anyone willing to help me out with a starting point or a plan to follow. Provided of course that this guy can do it. PM if necessary.
Man, the sh!t I get myself into lol. Thanks in advance.
if your already successful.. why do you need a quant? i'm a skeptic
you have intellectual property that is up for the taking.. i'd be careful..