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The problem is that there is no other really scalable revenue play for a product like Quantopian other than starting a fund. They could try and charge people fo
by inthewoods 9y ago
The problem is that there is no other really scalable revenue play for a product like Quantopian other than starting a fund. They could try and charge people for the platform but that is pretty niche. That could be a good business - but I'm not sure it's a VC-funded business.
Still, I've been skeptical of Quantopian's business for a while. System writers are likely to opt-out if they have any success, and they need a track record of 5+ years in order to raise any substantial amount of money - particularly true with something so unproven like a crowdsourced algo fund.
- huac 9y agoThey could (you know, theoretically) copy Robinhood's business model and its evolution - allow users to trade algorithmically with their own accounts, offer them up as sacrificial lambs to HFT, and then offer credit, and so on.
- unixhero 9y agoUhm, isn't that what they are doing? :)
- javiramos 9y ago"offer them up as sacrificial lambs to HFT" what do you mean?!
- samsonradu 9y agoAll the orders placed are sent to HFT traders before confirmation so they can take advantage of the information. There is even a commercial on Bloomberg for a broker that explicitly says they don’t sell out your orders like others do.