Trading for Alpha: The Market Taking Arm
By Nadine Yip
When traders navigate chasing short‑term alpha
Market Taking teams step into the role of fast‑moving traders, chasing short‑ and medium‑term opportunities wherever they appear. They buy into momentum when prices surge, and cut positions when signals weaken, always hunting for the edge. Armed with algorithms they’ve built themselves, the Market Taking teams uncover hidden mispricings, volatility gaps, and arbitrage plays. Raw data is turned into strategy with one goal in mind: consistent, high-volume trading.
The teams execute their own trades directly on the order book, with options off limits to keep the focus on the main exchange. Like market makers, takers can trade algorithmically, manually, or both.
Each market taking team has 7 students, comprising 1 team head, 4 quantitative analysts and 2 software developers. The team head defines strategy and risks the team takes, while quantitative analysts design algorithms to generate short-term signals and profitable execution ideas. Software Developers build and maintain the systems that run these strategies.
Teams asses their performance using metrics such as Sharpe ratio, hourly mark-to-market returns, net profit and loss, and profitable trade percentages. Additional diagnostics, including execution cost, order-to-trade ratios, and average hold duration help teams to refine their approach and improve efficiency.
To keep this pursuit of alpha in check, teams operate within strict risk limits. Exposure and daily drawdown caps ensure losses remain controlled, combining both long and short positions under defined boundaries. Breaching these limits carries consequences, ensuring teams chase profit under regulations that protect the wider exchange.
Furthermore, each team is given a full trading interface to execute their strategies. A live chart displays price movement and volume, alongside customisable technical indicators such as RSI, EMA, and MACD for teams that want to build their own signals. A ladder interface allows traders to execute or limit orders smoothly: crossing the spread sends a market order, while quoting within it queues a limit order at a chosen size. Positions and performance metrics sit alongside the chart, while customizable layouts let them monitor multiple assets at once.
By combining algorithmic precision with human judgement, QTE brings together every side of a real exchange under one platform. With live order books, defined risk limits, and proper trading infrastructure, market takers develop the discipline, speed and analytical mindset of a genuine trading floor.