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Squarepoint Capital·Data Scientist·Technical Phone Screen·Intermediate

IntermediatePrefer not to say
May 2026

Summary

Squarepoint Capital data scientist interview was pretty much a pure coding and algo session. Three problems back to back, two of them finance-flavored, one classic DP. Not a lot of small talk.

Questions Asked (3)

Q1

Implement a function that computes the maximum drawdown of a cumulative PnL series, returning the drawdown value as a negative number plus the start and end indices of the drawdown period. Analyze time and space complexity.

Algorithms & Data StructuresProduct Analytics & Metrics
Author's notes

This was the one I was least prepared for going in.

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AI HintsAI Generated

Suggested Approach

Clarify the definition of drawdown as the decline from a running peak to a subsequent trough, ensuring the returned value is negative. Then implement a single-pass algorithm that tracks the running maximum and the maximum drawdown, recording the start and end indices when a new maximum drawdown is found. Finally, analyze the time and space complexity, noting the O(n) time and O(1) space.

Pro tip: Explicitly state that the drawdown value is negative (e.g., -0.25 for a 25% decline) and confirm the index convention (0-based vs 1-based) to avoid off-by-one errors. Also, mention that the start index is the index of the peak, not the start of the decline.

1. Clarify definitions and requirements

Confirm that drawdown is the percentage decline from a peak to a trough, returned as a negative number. Clarify whether indices are 0-based or 1-based and whether the start index refers to the peak or the beginning of the decline.

2. Design the algorithm

Use a single pass through the series, maintaining the current peak value and its index. For each point, compute the drawdown from the current peak; if it's more negative than the maximum drawdown seen so far, update the maximum drawdown and record the peak index as start and current index as end.

3. Implement the function

Write clean code with clear variable names (e.g., max_drawdown, peak_value, peak_index). Handle edge cases such as empty series or series with no drawdown (return 0 or None with appropriate indices).

4. Test with examples

Validate the function with simple cases (e.g., [1, 2, 1, 3] -> max drawdown -0.5 from index 1 to 2) and edge cases (monotonically increasing, monotonically decreasing, constant).

5. Analyze complexity

State that the algorithm runs in O(n) time because it makes a single pass, and uses O(1) extra space since only a few variables are needed regardless of input size.

Key Points to Mention

  • Definition of drawdown as the decline from a running peak to a subsequent trough, expressed as a negative value.
  • Single-pass algorithm tracking the running maximum and the maximum drawdown.
  • Recording the start index as the index of the peak and the end index as the index of the trough.
  • Time complexity: O(n) because each element is visited once.
  • Space complexity: O(1) because only a constant number of variables are used.
  • Edge cases: empty series, no drawdown (return 0), and handling of ties (e.g., multiple peaks with same value).

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

Given an array of daily stock prices, find the maximum profit from a single buy and sell transaction where the sell must happen after the buy. Return 0 if no profitable trade is possible. Your solution must run in O(n) time and O(1) space.

Algorithms & Data Structures
Author's notes

Classic problem, I'd seen it before.

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AI HintsAI Generated

Suggested Approach

Use a single pass through the array, tracking the minimum price seen so far and the maximum profit achievable by selling at the current price. Update the minimum and profit at each step, ensuring O(n) time and O(1) space.

Pro tip: Clarify that you're assuming the array represents daily prices and that you can buy and sell on the same day if profitable, but typically the sell must be after the buy. Also, mention that returning 0 handles the case of no profit.

1. Clarify requirements and edge cases

Confirm that the array is non-empty, prices are positive, and that a single buy-sell transaction is allowed. Discuss edge cases like decreasing prices or single element.

2. Define variables

Initialize min_price to the first element and max_profit to 0. These will track the lowest price seen and the best profit so far.

3. Iterate through prices

For each price, update min_price to the minimum of current min_price and the price. Then compute potential profit as price - min_price and update max_profit if it's larger.

4. Return result

After the loop, return max_profit. If no profit was possible, max_profit remains 0.

5. Analyze complexity

State that the algorithm runs in O(n) time because it makes a single pass, and O(1) space because it uses only a few variables.

Key Points to Mention

  • Single pass algorithm
  • Tracking minimum price and maximum profit
  • Time complexity O(n)
  • Space complexity O(1)
  • Handling edge cases (e.g., decreasing prices, empty array)
  • Returning 0 when no profit is possible

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

Given a list of coin denominations and a target amount, return the minimum number of coins needed to reach that amount using unlimited coins of each type, or -1 if it's impossible. Walk through a dynamic programming solution and its complexity.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

Bottom-up DP, pretty standard.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the problem and edge cases, then explain the dynamic programming approach using a 1D array where dp[i] represents the minimum coins to make amount i. Initialize dp[0]=0 and others to infinity, iterate through amounts and coins to update dp[i] = min(dp[i], dp[i-coin]+1). Finally, discuss time and space complexity and potential optimizations.

Pro tip: Mention that while DP gives the optimal solution, for large targets or certain coin systems, greedy might work but is not always correct; showing awareness of trade-offs impresses interviewers. Also, consider using BFS for unweighted graph interpretation if appropriate.

1. Clarify problem and edge cases

Ask about constraints: coin denominations positive? target non-negative? Can target be 0? What if no combination exists? This shows thoroughness.

2. Define DP state and recurrence

Let dp[i] be the minimum coins to make amount i. Recurrence: dp[i] = min(dp[i - coin] + 1) for all coins ≤ i. Base case: dp[0] = 0, others infinity.

3. Implement and iterate

Iterate i from 1 to target, and for each coin, update dp[i] if i >= coin. Return dp[target] if finite else -1.

4. Analyze complexity

Time complexity O(target * number of coins), space O(target). Mention that this is pseudo-polynomial.

5. Discuss optimizations and alternatives

Mention space optimization (only need dp array), or using BFS for unweighted graph, or greedy with caveats.

Key Points to Mention

  • Dynamic programming optimal substructure and overlapping subproblems
  • Time and space complexity: O(n*m) and O(n) where n=target, m=number of coins
  • Handling of impossible cases by initializing to infinity and checking at end
  • Comparison with greedy algorithm and why it fails for certain coin systems
  • Potential space optimization: only need 1D array
  • Edge cases: target=0, empty coin list, negative amounts

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.