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Is Quantopian The Next Bloomberg?

forbes.com

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Re: Is Quantopian The Next Bloomberg?

#11

Post by toomuchtodo »

dunster wrote: post #7
sukaka wrote: post #4

I've been lurking on Quantopian for a few months. The algotrading community is secretive. Currently, you code in python which is then saved and run on their servers. I fear Quantopian copying the best trading strategies for their own use. Even if you black box the code, all Quantopian needs is I/O with your program. What's to stop this?

We get this question at Quantopian periodically. You retain ownership of the content you put in our system; everything you write is yours. Your intellectual property remains private and your own. You can read more about our policies in our terms and in our FAQ ( https://www.quantopian.com/faq and https://www.quantopian.com/policies/terms ) Of course, there is no way that we can prove or guarantee that we're not peeki…

As a Quantopian user, thank you.

Re: Is Quantopian The Next Bloomberg?

#12

Post by bachback »

Having worked for a 700M$ quant investment fund, I'd say, uhem no. It's pretty simple: algo investing doesn't work well or at all. algo trading does. nobody publishes very good algorithms. there are perhaps only 20 very good systems in the world. usually they are statistical arbitrage or HF. these kinds of systems are measured in sharpe ratio and turnover at least once a week. although I've spoken to a 25 year old who managed to make a killing auto-trading an emerging market, but these things don't happen at scale.

also, Bloomberg is in completely different business.

if somebody really wants to work on replacing Bloomberg let me know. this is a huge market, which nobody is working on AFAIK (=~Angellist).

Re: Is Quantopian The Next Bloomberg?

#14

Post by bitcuration »

peterjancelis wrote: post #3

In this space there is also http://www.quantconnect.com . As a concept it can take off for sure, but not sure the Bloomberg comparison is fully accurate.

In that space, there have been many quant tools/online communities, smartquant, openquant etc., let alone weath-lab, traderstation the old school TA tools, yet none has taken off into mainstream.

In the algo trading field, nobody can beat HF. In the alpha seeking field, it takes much more than trading algo, or a single algo. Complete computerization is not impossible but definitely a very hard problem.

In term of creating a Bloomberg competing model, I'll not entirely build it on algo based. There are numerous cheap highly educated labor out there in the world, outsource it, fill in the gap where data mining is still not good at. Only then, Quantopian will become a sound Bloomberg conteder.

Re: Is Quantopian The Next Bloomberg?

#15

Post by dman »

tesseractive wrote: post #6
kevinpet wrote: post #2

Revenue per user might be high, but it's targeting a smaller market. Bloomberg is useful to anyone who buys or sells stocks in any way. Quantopian seems to be about people who want to find a technical system to beat the market. This is by its nature self-defeating. If everyone is using Quantopian, everyone cannot be beating the market. The article makes this very point on page two.

At the same time, if this is a genuinely useful tool for its intended purpose, there are lots of exit strategy possibilities. It might be worth billions to a single hedge fund.

How many hedge funds spend billions on technology?

Re: Is Quantopian The Next Bloomberg?

#16

Post by dman »

bachback wrote: post #12

Having worked for a 700M$ quant investment fund, I'd say, uhem no. It's pretty simple: algo investing doesn't work well or at all. algo trading does. nobody publishes very good algorithms. there are perhaps only 20 very good systems in the world. usually they are statistical arbitrage or HF. these kinds of systems are measured in sharpe ratio and turnover at least once a week. although I've spoken to a 25 year old wh…

How do I get in touch with you?

Re: Is Quantopian The Next Bloomberg?

#17

Post by bitcuration »

dunster wrote: post #7
sukaka wrote: post #4

I've been lurking on Quantopian for a few months. The algotrading community is secretive. Currently, you code in python which is then saved and run on their servers. I fear Quantopian copying the best trading strategies for their own use. Even if you black box the code, all Quantopian needs is I/O with your program. What's to stop this?

We get this question at Quantopian periodically. You retain ownership of the content you put in our system; everything you write is yours. Your intellectual property remains private and your own. You can read more about our policies in our terms and in our FAQ ( https://www.quantopian.com/faq and https://www.quantopian.com/policies/terms ) Of course, there is no way that we can prove or guarantee that we're not peeki…

Trust can take care concerns of credit card transaction, banking, or privacy. But when it comes to trade secret, intellectual property, trust is irrelevant. If you're working on trust, you're on the wrong path.

Traders need to keep their algo close to themselves. What you can offer is not testing their algo on your platform, but separating the their critical algo from the commodity data mining then offer the latter. The latter is what most traders don't have and you can add value. The ability of separating the algo, might just be your competitive edge.

Re: Is Quantopian The Next Bloomberg?

#18

Post by peloton »

dman wrote: post #15
tesseractive wrote: post #6

Earlier quoted context omitted.

At the same time, if this is a genuinely useful tool for its intended purpose, there are lots of exit strategy possibilities. It might be worth billions to a single hedge fund.

How many hedge funds spend billions on technology?

They would if they found tech that gave them a clear edge and it made sense to acquire from an ROI perspective.

Re: Is Quantopian The Next Bloomberg?

#19

Post by bachback »

tesseractive wrote: post #6
kevinpet wrote: post #2

Revenue per user might be high, but it's targeting a smaller market. Bloomberg is useful to anyone who buys or sells stocks in any way. Quantopian seems to be about people who want to find a technical system to beat the market. This is by its nature self-defeating. If everyone is using Quantopian, everyone cannot be beating the market. The article makes this very point on page two.

At the same time, if this is a genuinely useful tool for its intended purpose, there are lots of exit strategy possibilities. It might be worth billions to a single hedge fund.

hackers at the billion $ HF's are the best in the world and there is no tech here that is really of any value to them. not to be too mean, but this is basically a nice webpage with a couple of scripts. If somebody would build a FIX engine and a broker with containers, that would be worth perhaps a billion in aggregate (NYSE:IBKR). But generally you start from scratch, for very good reasons.

Re: Is Quantopian The Next Bloomberg?

#20

Post by bachback »

dman wrote: post #16
bachback wrote: post #12

Having worked for a 700M$ quant investment fund, I'd say, uhem no. It's pretty simple: algo investing doesn't work well or at all. algo trading does. nobody publishes very good algorithms. there are perhaps only 20 very good systems in the world. usually they are statistical arbitrage or HF. these kinds of systems are measured in sharpe ratio and turnover at least once a week. although I've spoken to a 25 year old wh…

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