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Comment by JSDevOps | Hacker News Reader

Is this an AI pitch? You know hedge funds use algorithms right?

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

Is this a it like eToro copy trade?

yep, its similar! however, here you do not copy trade a person, here you trade as per the algorithm designed by the quant algorithm developer.

> quant algorithm developer.

How do you verify that?

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

3 months is totally the wrong approach.

ahh, what'd you suggest?

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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