Max Dama on HFT: Millisecond Algos and Bid/Ask Dynamics — #92

In this episode of the Manifold podcast, Steve Hsu interviews Max Dahmer, co-chair of Headlands Technology, a quant prop trading firm. Dahmer discusses his background, from his early interest in AI and trading to his education at Berkeley, where he pursued multiple degrees and founded a trading club. He shares insights into the evolution of the trading industry, the importance of infrastructure and coding skills, and the cyclical nature of the business. Dahmer also touches on the role of AI in trading, particularly large language models, and offers advice for young people interested in entering the field, emphasizing the need for passion and a strong understanding of technology. He describes a typical day in his role and explains how firms evaluate and compensate their employees based on their contributions to the technology and P&L.