Signal Evaluation Quant Interview Guide
Signal evaluation quant interview guide covering target definition, IC, rank IC, turnover, costs, robustness, and examples.
Candidates explaining predictive strength, robustness, and implementation quality.
Define what the signal predicts
State the prediction target, horizon, universe, rebalance timing, and whether the signal ranks assets or predicts absolute outcomes.
Use more than return
Evaluate IC, rank IC, hit rate, spread returns, turnover, drawdowns, costs, capacity, and stability across regimes and universes.
Concrete example
A daily cross-sectional signal can have positive rank IC but still be unattractive if turnover is high and liquidity is poor.
Robustness matters more than one result
Check subsamples, time periods, sectors, transformations, neutralization choices, and whether performance depends on a few outliers.
Common mistakes
Candidates often present one backtest chart. A stronger answer decomposes predictive quality, implementation cost, and fragility.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.