← Citadel Interview Insights

Citadel·Data Scientist·Technical Phone Screen·Intermediate

Intermediate
Jun 2026

Summary

Citadel Data Scientist interview with a classic DP problem on stock trading. The coding focus was tight and technical, basically one meaty algorithmic question with a specific complexity requirement attached.

Questions Asked (1)

Q1

Given an array of daily stock prices and an integer K, write Python code to find the maximum profit possible using at most K buy-sell transactions. The interviewer asked for a bottom-up dynamic programming solution running in O(K·N) time and O(N) space.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

The complexity constraint is what made this annoying.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Clarify the problem constraints and edge cases, then explain the DP state and recurrence before coding. Implement the bottom-up DP with O(K·N) time and O(N) space, and test with a small example.

Pro tip: Emphasize that you can optimize space by using two 1D arrays (for buy and sell states) and that the O(K·N) time is optimal for this problem. Also, mention that you can reduce K to min(K, N//2) to avoid unnecessary work.

1. Clarify and Define

Ask clarifying questions: Can you buy and sell on the same day? Is K large? What if K >= N/2? Define the DP state clearly: dp[k][i] = max profit with at most k transactions up to day i.

2. Derive Recurrence

Derive the recurrence: dp[k][i] = max(dp[k][i-1], max_{j<i}(prices[i] - prices[j] + dp[k-1][j])). Explain how to optimize the inner max by maintaining a running maximum.

3. Optimize Space

Show how to reduce space from O(K·N) to O(N) by using two 1D arrays (prev and curr) or by updating in place with careful ordering. Mention that we can also use two arrays for buy and sell states.

4. Implement and Test

Write clean Python code with comments. Test with edge cases: empty array, K=0, K >= N/2, increasing/decreasing prices. Walk through a small example to verify correctness.

5. Analyze Complexity

State time complexity O(K·N) and space O(N). Discuss trade-offs: if K is large, we can use the greedy approach for unlimited transactions (O(N) time).

Key Points to Mention

  • DP state definition and recurrence relation
  • Space optimization from O(K·N) to O(N) using rolling arrays
  • Handling edge cases: K=0, K >= N/2, empty array
  • Time complexity O(K·N) and why it's optimal
  • Alternative greedy approach for unlimited transactions
  • Testing with small examples and edge cases

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