Hello,
I'm thinking about trying something, but not sure how it would be handled technically. Lets say I have a basket of strategies (Alphas) within a framework algorithm. I want to track each Alphas returns separately whether or not I'm actually trading the stocks, independent of it's weight.
Example:
Alpha 1, weight 10%, trades between SPY,TLT
Alpha 2, weight 50% trades SPY, GLD
Alpha 3,4,5 etc.
- The tickers are not unique to each alpha
- Each Alpha holds different allocations of each ticker according to the logic of each one.
- The algorithm may put different allocations to each alpha, not constant, some alphas may not be traded at all for a time, but i want to track what the returns of only that alpha would have been.
- The actual holdings of the algorithm may vary or be none at all
Derek Melchin
Hi Lukel,
This is possible to implement, but the difficult part will be tracking the past performance of each alpha model. One possible approach is to simulate the trades generated by each alpha model's insights inside a custom PCM.
See the attached backtest for a starting point.
Best,
Derek Melchin
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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
LukeI
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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
To unlock posting to the community forums please complete at least 30% of Boot Camp.
You can continue your Boot Camp training progress from the terminal. We hope to see you in the community soon!