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Citadel·Software Engineer·Onsite - Coding / Algorithms·Intermediate

Intermediate
Apr 2026

Summary

Citadel SWE interview with a second-round interviewer who had a competitive programming and PhD background. The whole session was basically one DP problem that kept mutating, stock trading with progressively nastier constraints layered on top.

Questions Asked (1)

Q1

Solve a stock trading DP problem, then extend your solution to handle transaction fees, cooldown periods, and other added constraints across multiple follow-up rounds.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

Started fine on the base case but the follow-ups stacked fast.

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AI HintsAI Generated

Suggested Approach

Start by clearly defining the state and transition for the base stock trading problem, then generalize the DP recurrence to incorporate each new constraint (transaction fees, cooldown) as a modification to the state or transition. For each follow-up, explain how the added constraint changes the state space or transition, and adjust the DP accordingly, ensuring time and space complexity are analyzed.

Pro tip: Always discuss the trade-offs between different DP formulations (e.g., state definitions, space optimization) and proactively mention edge cases like multiple transactions, cooldown after selling, and fee impact on profitability. This shows you think like a production engineer, not just a coder.

1. Clarify the base problem and constraints

Restate the problem: given stock prices, maximize profit with unlimited transactions (or limited k). Confirm constraints like can you buy and sell on the same day, and whether short selling is allowed.

2. Define DP state and transition

Define DP[i][j] where i is day and j is holding state (0: no stock, 1: holding stock). Write transitions: dp[i][0] = max(dp[i-1][0], dp[i-1][1] + price[i]); dp[i][1] = max(dp[i-1][1], dp[i-1][0] - price[i]).

3. Extend for transaction fees

Modify the sell transition to subtract the fee: dp[i][0] = max(dp[i-1][0], dp[i-1][1] + price[i] - fee). Explain that this discourages frequent trading and may change optimal strategy.

4. Extend for cooldown period

Introduce a cooldown state or adjust transitions: after selling, you cannot buy for one day. Use dp[i][0] = max(dp[i-1][0], dp[i-1][1] + price[i]); dp[i][1] = max(dp[i-1][1], dp[i-2][0] - price[i]) to enforce cooldown.

5. Analyze complexity and optimize

State time O(n) and space O(n) or O(1) with rolling variables. Discuss how each constraint affects complexity and whether further optimizations are possible.

Key Points to Mention

  • State definition: holding vs not holding stock, and how it evolves with constraints.
  • Transition equations and how they change with fees and cooldown.
  • Time and space complexity, and space optimization using rolling variables.
  • Edge cases: empty input, single day, fees larger than profit, cooldown at boundaries.
  • Trade-offs: clarity vs efficiency, and how constraints impact optimal strategy.
  • Generalization to k transactions and other constraints (e.g., multiple cooldowns).

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