If there were no barriers like accreditation or high minimums, which would feel more convincing to you: investing in hedge funds or algorithmic strategies?
lol not ai! yeah i do. so basically i'm building: https://exponential.markets/ and currently looking to understand if repositioning our brand for investors to invest in hedge funds will be more converting rather than invest in algorithms
we show the investors the algo's backtest performance with years of data & 3 months of paper testing it on live!
they bet on the algorithm & not the developer as such! but they can see the dev's other algos and their AUM, returns, sharpe ratio etc to see how they're performing
Because the standard alphas that are submitted to other funds, they usually backtest it with years of data. And then let it paper trade for 3-6 months to make a decision on how much to bet upon.
would love to get your insights, since you've experience w hedge funds as well as algos
No way anyone is investing any serious money or money at all on 3 months worth of back testing. Look at the market for the last 3 months. How can you take that seriously? You could have thrown a stone anywhere in the last 3 months and made gains of 1000% it’s not realistic is it?
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[ 0.19 ms ] story [ 42.7 ms ] threadlets say you see 2 exactly same products and the only difference is that one markets it as hedge fund and the other as algo. what'd you prefer?
How do you verify that?
they bet on the algorithm & not the developer as such! but they can see the dev's other algos and their AUM, returns, sharpe ratio etc to see how they're performing
Because the standard alphas that are submitted to other funds, they usually backtest it with years of data. And then let it paper trade for 3-6 months to make a decision on how much to bet upon.
would love to get your insights, since you've experience w hedge funds as well as algos