How are systems selected to be licensed via alpha streams? What metrics are assesed?
Does a user need to fund and run their strategy live before it can be considered?
Can the licensing fee be a pertange of gains rather than a static dollar amount?
Is there a public place which tracks the results of systems that are currently licensed?
Jared Broad
Sorry for the delay Kieran! The team flagged it for me to answer and I was travelling last week =)
1) Funds in the market select alphas which match their interests. They measure all the traditional metrics and make sure its a good fit for their portfolio. I don't think this will be a problem -- if you have a promising strategy one of the funds in the market will license it.
2) Strategies don't need to be live before being considered.
3) Currently we are not auditing the capital allocation; and if there are 1000 alpha's which go into a portfolio its tricky to pick out the % of gains which can be attributed to your alpha. So currently its subscription based. This subscription should roughly equate to the % of gains anyway -- just price your subscription according % move * max capacity * 10% rev share. You can adjust this price each month.
4) The public place is designed but not published yet. We'll publish as the platform becomes more mature.
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Kieran Flynn
Thanks for your response!
Kieran Flynn
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.
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