More color on contest rules
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@support okay, but I still can't fully understand.
You say 1 year. Does it mean that after one year you won't invest more in a strategy and the author won't receive any "royalty" anymore?
Could you please explain this ? I can't understand it by reading your legal bindings
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@magenta-grimer Let's suppose my strategy has stable, positive returns, like 15% yearly and sharpe over 1.5. Will you pay me for one year only based on its performance ?
After one year you will stop using it and won't pay me anymore, based on the algo performance as always, or will you still use it and don't pay anymore since more than 1 year has passed
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@magenta-grimer No, it does not mean we stop investing, according to the real performance we could take 3 decisions:
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stop;
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continue with same allocation;
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continue with larger or reduced allocation.
If we continue, we would pay to the quant fees.
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@magenta-grimer If we trade it more than 1 year, you will be paid of course.
There are 3 phases in each contest:
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the backtesting, when the strategy is simulated on past data;
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the live evaluation phase, for deciding winners; this phase is still paper trading, trades are simulated, slippage model is used in a simplified way;
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the real trading for the winners: in this phase we will see that the assumptions made during paper trading are fine for reality. One year is a good period for assessing the strength and the capacity of the strategy.
At the end of the year we can take 3 decisions:
a) stop trading, because (for example) the real performance is not good enough;
b) continue with the same allocation;
c) reduce allocation or increase them;
In case b) and c), the quant (you for example) would get fees also after 1 year.
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@support ok, now things are more clean
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@magenta-grimer It means that if I really write a good strategy, I can receive fees for many years, too
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@magenta-grimer yes, correct, and it does not have to win a contest, we monitor all submitted systems and will contact the quants who wrote interesting systems.
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@support what you say is really interesting..it means that one can expect to receive an allocation even outside the contest, if the performance is interesting...
How much capital do you have to allocate?
So far you seem to be running like 34 M USD in strategies since Quantiacs started....is that correct?
will you be able to allocate 5M USD if you find the "correct" strategy? -
@magenta-grimer Hello, the 34 M USD have been allocated to the winning strategies according to the contest rules.
Other strategies have been funded, and agreements are in place between quantiacs, investors and quants. We cannot disclose more details now, sorry.
5M USD is a reasonable capacity a strategy could handle, yes.
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