Many members of the community have asked about algorithm capacity in the contest. The addition of the Pipeline API, combined with fundamental data, is enabling some great algorithms that trade big baskets of stocks - 250 names long, 250 names short, etc. Those algorithms have very promising results when tested against $1,000,000, but they do terribly at $100,000. At $100,000, the position sizes are too small to be well balanced, and the transaction costs eat up the gains. Those big-basket algorithms also have a much higher investment capacity. High-capacity algorithms are more interesting than low-capacity ones. For these reasons, Contest 12's capital base will be $1,000,000.
The late philosopher Notorious B.I.G. once wrote "Mo money, mo problems." We're faced with a similar conundrum. Today, every winner manages $100,000 of our money for 6 months and keeps the profits. With 6 winners invested on any given day, that's $600,000 of our money tied up. Moving to $1m . . . we just don't have $6,000,000 lying around to tie up in contest winners! So, we're changing the prize structure. When you win the contest, you get a $5000 check. We're also adding a second place prize of $1000 and a third place prize of $500. We're going to issue custom contest-winner t-shirts to the top 100. If you do well in the Quantopian Open, you are going to be able to show the world!
The scoring rules are not changing. The increased capital, though, will give high-capacity algos more room to shine.
The new contest is a clean start, so you can make 3 new entries this month - regardless of how many you already have entered. If you already made an entry to Contest 12, you will need to re-enter it with the new $1,000,000 base.
UPDATE: Entries for Contest 12 are now open! (The leaderboard for Contest 12 is not updated. The leaderboard will be corrected sometime after close on Monday the 23rd.)
Summary and details:
- Contest 12 algorithms will paper trade on $1,000,000 capital base.
- The winner of Contest 12 will get $5000, second will get $1000, and third will get $500.
- Contests that have already begun are unaffected. The winners of Contests 8, 10, and 11 will have their algorithm traded with $100,000 of our money, and keep the profits.
- You can make 3 entries to Contest 12 - your previous entries don't count towards the limit.
- If you have more than one algorithm that wins prize money in Contest 12, you only get the higher prize, and the lower prize will be distributed to the next person. I.e. if you finish both first and second, you'll get $5000, and the third and fourth place winners will get the lower prizes.
- If you win first place, you are ineligible for cash prizes for the next 3 months. Your entries keep running, they just can't win.
- Deadline for entries is December 1st, 9:30 AM EST. Winners will be announced June 1st (or immediately thereafter).
Good luck to all participants.