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Is buying or selling algorithms a thing and if so what are some good resources?

I’ve been working on quantopian for some time now. My problem is I have good algorithms but never seem to win the contest or make any progress on getting one of those mysterious “allocations.”

Is there another option if you have good code but no cash to put behind it? Is anyone outside of Q buying or taking on protégés?

10 responses

Same question.

Carl, the problem with your suggestion is that it makes no sense. Anyone with a good algorithm will just start live trading it. If it really makes money, then why would you share it with anyone?

Try collective2

I got a private message the other day about one such marketplace. Seemed like a terrible idea. Uploading your code to some 3rd-party website, how're you going to trust the person running that website not to steal your code? The website that was SPAMed to me had a "sell your source code" business model where you have to upload your code to the site and they approve it. So think about it -- even if the owners are legit and trustworthy (which is a total act of blind faith and already makes the whole proposition so not-worth-the-risk) how are you going to price your algorithm? Obviously algorithms will produce greater returns with larger investment capital -- so either you have to price your algorithm for a hedge fund customer and make it inaccessible to the average Joe, or you price it for the average Joe and give Wall Street a ridiculous discount. If I were a hedge fund guy I'd throw up a website like that just to scam people out of their algorithms for a pittance and make bank.

Alice makes a great point as well. If you have a good algorithm that you're confident about, selling it is just not worth it. You're likely to dilute your alpha source by selling the algo -- it will dry up. If you're truly confident with your algorithm, just put your own money in there and you'll make more than what you're likely to get selling it, right? If you're really truly confident with your algorithm, then I would focus on how to get more money to invest in it instead of selling it for a pittance. If you're not confident enough with your algorithm to put your own money behind it, well then you're scamming your customers if you sell it.

It would be great if Q had a (FEATURE REQUEST) marketplace where we could rent live-trading access to our algos and get a cut of the returns in return.

Hey @Alice, thanks for your comments. I understand completely. Thing is, I’m just a student. I’d rather sell my code outright to pay off my student loans.

Carl if you are looking to make some college money then take a look at site deleted. I found about them recently and it seems as they have some sort of marketplace for algorithms. Has anyone here had any experience there?

[Edited to be more courteous]

Carl, Anna, Alice, and Peter are all fake accounts create to deliver this SPAM thread.

It's my personal opinion that the site that they're spamming on this message board and in private messages to individual users is untrustworthy, and I recommend people avoid it. You run the risk of your code being stolen and getting nothing for it in return. At the very least, you are being exploited. Not only is the website terribly executed, the underlying business model actively undermines the democratizing ideals of DIY quanting. I have no patience for exploitative business models.

I have a ton of respect for Q for making this platform free to use, for research, backtesting, and even personal live trading. That investment in their userbase will pay off (or is paying off?) magnificently.

I'm not sure unless you have 1,000% returns that Collective2 is worth it - hard to tell how may subscribers there are, lowest amount to trade live is $19 - you'd need to have a couple subscribers to even earn that back.

They also take 50% of your subscription fees so 19.99 + half of what you charge any subscribers

Does anyone have experience on Collective2?

I made a couple of edits to this thread for violations of the Terms of Use. I ordinarily would delete the whole thread, but this one might be useful to future readers, so I'm leaving it here.

The origin of this thread is indeed a solicitation, and that is forbidden. I won't share my opinion of their website, but I will say that this sort of astroturf marketing is gross.

Second, I remind everyone that it's not permitted to attack other members. We can disagree and debate ideas as much as we want.

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My apologies, I guess I've been going a bit stir crazy waiting on backtests. I edited my post to be more courteous.