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Compensation question
cyapur
posted Jun 6, 2019
Getting Started

The Quantopian Official statement about compensation says:

More specifically: funded algorithms are combined into the investment
strategy operated by Quantopian. 10% of the investment strategy’s net
profits are set aside in a royalty pool to align incentives for
authors, Quantopian, and investors in the strategy. Each author’s
share of that pool is proportional to their allocation or weight
within the broader Quantopian investment strategy.

This means, if the algo is funded with 1.000 dollars, and it profits 10 dollar per month (1%). 1 dollar (10% of the 10 dollar profit) is set aside to align incentives among autors, Quantopian, and investors. How much of that dollar is for the author?.

I thought the compensation for the author was 10 percent of the profits (1 dollar from the example above). But reading twice it doesn't seem to be.

2 responses
Dan Whitnable
Jun 6, 2019

10% of net fund profit is allocated to the authors. What may have thrown you off was "royalty pool to align incentives for
authors, Quantopian, and investors"? The 10% is not split with Q or investors. It all goes to the authors. The sentence was meant to convey that the 10% author royalty is aligned with the goals of our investors, and Quantopian, to generate a reasonable return. Sorry for any confusion.

Disclaimer

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 Quantopian. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian 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.

cyapur
Jun 6, 2019

Got it ! Thanks!

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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 Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian 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.