Four habits of highly successful quant traders, backed by neuroscience
Quant finance is an innately competitive field but it's not just AI that gives you an edge. Emily Cook, a private equity associate-turned neuroscience-based performance coach, said that the most effective firms couple AI usage with "improving cognitive performance". Speaking at Quant Strats Europe today, she said that many quant traders aren't tapping into their true potential, and gave four simple ways to change that.
1. Protect deep work with a 90-minute focus window
While banks and trading firms are experimenting with optimizing the circadian rhythms of their staff, Cook said that ultradian rhythms remain largely unoptimized. These are cycles that repeat multiple times over a day that determine "alertness and productivity." Cook says that you should be "making the most of those natural peaks" by clearing out a 90-minute period at least once per week to focus on your most important tasks.
This should be a period with no distractions and your phone on silent; Cook said that, once you've been distracted, it can take up to 20 minutes to regain your full momentum. If possible, this should be a teamwide initiative. You should also try and figure out which chronotype you are (early bird, night owl or something inbetween) and plan your focus window around your optimum ultradian cycle.
2. Subtract, don't add
Clearing a 90 minute distraction-free period is obviously a massive challenge in finance, especially if your role involves interacting with clients. You face the same problem with wellness practices like meditation. Cook said that there's only so much 'bandwidth' people can deal with at once, likening each task and duty to an open tab on a web browser.
Therefore, you need to look at which tabs you can close. She gave the example of an MD at a leading finance firm who was "managing a team of 20 people, but also had two children... his cognitive load was super high." Cook asked the MD to look at what things weren't mandatory, even on a temporary basis when approaching tight deadlines. For example, getting rid of cooking duties by consistently ordering food or organizing for your partner to cook over a certain period will free up multiple hours per week, and cooking can resume in less busy periods. Similar methods can be taken for other menial duties like cleaning.
3. Perform a cognitive Reset
If you've taken away all you reasonably can, but you're still feeling overburdened by stress, there are things you can do to drastically release stress in as little as two minutes.
Cook said breathing exercises with a focus on long exhale breathing are "the quickest and easiest method" to tap into your parasympathetic nervous system. For example, you can breathe in for four seconds, breathe out for eight seconds, and repeat that cycle a few times.
Because of how little time it takes, you can fit into your routine wherever necessary. Cook said that some clients do it ritualistically over the day to gradually reduce stress; "some people do it every time they have a cup of coffee or go to the bathroom." Other people do it for specific tasks and events like "if you have to be sharp for a meeting."
4. Hydrate
It's an obvious one but still worth mentioning. Cook said that "nutrition is fundamental" to cognitive functioning, as is hydration.
Cook said that this (and all the above techniques) are ways of optimizing 'Brain Capital.' The brain has two primary dimensions, brain health and brain skills; the former is influenced by various factors and has an impact on the latter. Fuel, in the form of food and hydration, improves brain health which in turn makes you more effective at skills characteristics like your ability to focus.
This extends to other consumed substances like caffeine. Cook said that she switched from drinking coffee to matcha (a type of green tea), which has a much slower caffeine release and less chance of a crash.
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