1. You use our platform to create investment algorithms.
2. We evaluate your algorithms, and selected authors receive an offer to license their algorithm.
3. When a selected algorithm generates positive returns, the author gets a cut.
Our job is to raise the capital, handle all day-to-day trading operations, provide useful data sets, and build the best platform in the world for creating investment strategies.
If your algorithm receives an allocation, we will pay you a share of the returns that your algorithm earns on our capital. Our target is to pay you 10% of the net profit on your algorithm's allocation.
We started managing investor capital on April 3, 2017. The initial allocations ranged from $100,000 to $3,000,000, with a median of $1,500,000. We plan to increase the size and number of allocations over time. By the end of 2017, we hope to be making allocations that average $5-10 million per algorithm, with an intended minimum of $1 million and we hope as high as $50 million.
We are building a portfolio of uncorrelated investments. Financial theory, backed by evidence in practice, shows the benefits of aggregating a large number of uncorrelated returns streams. The key is that the algorithms should be uncorrelated.
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.
In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.