Hello everyone I'm a mathematics student who just discovered this curious site. I've been looking around here, but couldn't get an answer. Everyone of you post an automatic chart made by the system with reliable information (as I understand) from IB. Many show a great success, with performance over 100%. My question is. Does it mean that if I use any of those algorithm in my account will it have an the expected performance rate shown in the charts? I suppose it's not that easy, but you know, needed to ask.
Thanks!
Newbie Questions (please be merciful)
Welcome Zaico! If you have an investing idea, the first step is to test it out. How do you do this? By backtesting. A backtester is a sandbox environment where you can test how your strategy would have performed in the past, without putting any money at risk. As with any software, you need to know the mechanism and rationale of how things work. Are all of the strategies shared in the forums feasible? As Simon said, no :) . Many of them are over-leveraged, where they borrow more money than a standard broker will allow. If you spend the time to craft your code and develop your strategy, then you'll find something that could work.
Then your next step is to paper trade - see how it performs in the current market using a simulation portfolio. You can connect it to a 15-minute delayed feed (for free) on Quantopian or connect to your Interactive Brokers account. Better yet, submit it to the contest and see how you fare against others. We will be selecting algorithms from this pool for our hedge fund.
So, where do you start? Take a stab at tutorials by learning the API, delve into finance theory, get familiar with python, and read the help documentation. Good luck!
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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.
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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.