2min chapter

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#5 - Alex Gordon-Brown on how to donate millions in your 20s working in quantitative trading

80,000 Hours Podcast

CHAPTER

What Are the Risks for a Quantitative Trading Firm?

There was one quantitative trading firm that managed to make itself bankrupt in half an hour by programming their algorithms incorrectly. That's the kind of thing that your managers would be terrified of, right? So they're putting in all of these safeguards to try to make sure that that never happens. With these firms, there are two very distinct ways that you can lose allYour money. You can do trades that are actually bad and lose all your money that way. And those are both pretty significant risks for a firm like this. The management has every reason to worry about both of them.

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