Update 2/23/2016: Robinhood has announced Robinhood Instant (http://blog.robinhood.com/news/2016/2/22/introducing-robinhood-instant), removing the need to check for unsettled cash and T+3 Settlement dates. Please adjust the algorithm accordingly if you are using Robinhood Instant.
Algorithmic trading used to be a very difficult and expensive process. The time and cost of system setup, maintenance, and commission fees made programmatic trading almost impossible for the average investor. That’s all changing now.
We’re excited to announce that Quantopian has integrated with Robinhood, a zero commission brokerage.
From initial brainstorming with research, to testing and optimizing with backtesting, and finally, commission-free execution with Robinhood, algorithmic trading has never been easier.
Here’s What You Get
- Data - Data is the lifeblood of algorithmic trading. But most data is costly and dirty. Quantopian solves that for you with clean, integrated data sources. Some data sources are entirely free (traded price and volume, corporate fundamentals), and some data sources are freemium (news sentiment, earnings estimates, and more).
- Platform - Quantopian provides you with a platform to do your free-form research, to write and test your algorithm, to paper trade, and even trade real money. You don't have to set up, maintain, or monitor - we do it all for you.
- Execution - Robinhood provides order execution, holding your funds and filling your orders.
- Capital - You can trade your own money, or you can seek an allocation and trade with our money. One way to get allocation is to win our contest, trade $100,000, and keep 100% of the profits.
How To Get Started
If you have an existing Robinhood account, you can begin trading today. If you’d like to open an account, you can sign up directly at Robinhood - the process takes less than five minutes to complete.
Try This Algorithm - Mebane Faber’s Tactical Asset Allocation
The algorithm here is based off Mebane Faber’s Tactical Asset Allocation. The allocation Faber proposes is designed to be "a simple quantitative method that improves the risk-adjusted returns across various asset classes." You can read the original academic paper from Meb Faber, or the previous discussion of the strategy on Quantopian.
Click "Clone Algorithm" below to get a copy of the code for yourself. Or, go to your algorithms page and write your own.
Edit: removed a sentence about "completely free" since there are small, 2 cent per trade fees passed back to regulatory agencies.
12/4/2015 Update: Market orders submitted through Robinhood get placed as limit orders with a 5% buffer (on buys). The result of this is that a market order for $100 will get placed as a limit order with $100 *1.05 = $105. So please insure that your final order price is less than your buying power. The best way to do that is to use the
order_for_robinhood method in this algorithm which places a 5% buffer on your cash to prevent that from happening.
|Returns||1 Month||3 Month||6 Month||12 Month|
|Alpha||1 Month||3 Month||6 Month||12 Month|
|Beta||1 Month||3 Month||6 Month||12 Month|
|Sharpe||1 Month||3 Month||6 Month||12 Month|
|Sortino||1 Month||3 Month||6 Month||12 Month|
|Volatility||1 Month||3 Month||6 Month||12 Month|
|Max Drawdown||1 Month||3 Month||6 Month||12 Month|