Swanand

justin88 Wrote:
-------------------------------------------------------
> hey bromion, good to see you around.
>
> i can help you on the execution front, but need
> more detail. (you have my email so feel free to
> hit me up there if you can't share detail here.)
> would you be trading a significant portion of ADV?
> are you taking or providing liquidity? are you
> willing to trade in dark pools? what kind of
> holding period are you talking (seconds, minutes,
> months, etc.)?
>
> as you probably know, most PBs have sell-side
> VWAP-like algos and/or smart order routing. if
> not, familiarize yourself with those terms. their
> algos would probably do better than your own naive
> trading, unless you are not trading much volume
> (no market impact) or looking to foster execution
> expertise within your firm (non-trivial for
> sure).
>
> perhaps a good place to start is Durbin's book
> "All About High Frequency Trading". it's
> technical but pretty accessible, and he's got
> pretty good credentials. (he's a former Citadel
> options HFT guy.) it's also only $15.

Awesome, thanks. Yes, I learned today that I will be doing all of the trading, whatever that means, so I probably should know about everything on your list. I'm going to spend the month of May training with the firm's head trader, so I'll buy and read a couple of books before then starting with Durbin.

We do a lot of small cap stuff in illiquid names over a multi-month or multi-year period (no skimming off the market, etc., so I guess that means providing liquidity?), and are active in the OTC block market as well for opportunities with high multiples of ADV. I know how all of the algo stuff and VWAP stuff works in theory, but have never directly worked with it and don't know much about "market structure" issues like dark pools, high frequency, etc. Up until now in my career on the buyside, I've made recommendations to the PM, who then works with our traders to buy or sell, and that's that. It'll be interesting to get a higher level overview of the fund from a management perspective in all regards (hiring, trading, marketing, local partnerships & banking relationships, etc., etc.).

That's probably a great start, but I'll drop you an email if I have any more questions.