I got a question about quantopian's backtest. I just wrote some codes using python and I download data from Yahoofinance. I found out the bid ask spread will have a large effect on my profits. So does quantopian actually consider the bid-ask spread for the backtest
the second question is about the paper accout. is this paper account related IB's paper account?
I don't have aacount with IB..
They don't provide margin without $100000.0
Hello, and welcome to Quantopian!
Quantopian doesn't explicitly consider the bid-ask spread. We think about it more as the concept of "slippage." You place an order hoping that you'll get price X, but you actually get price (X +/- N). We have two different ways to calculate slippage, and they are both configurable. You should pick the one that is most relevant for the stocks you are trading. https://www.quantopian.com/help#ide-slippage
Quantopian paper trading is free, and totally unrelated to the IB paper account. To do a Quantopian paper trade, you need to first run a "full backtest" and then the paper trading option appears.
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Eric, I'm not sure where you got your information. The IB website indicates a minimum of $10,000 USD for individual accounts. That pops up to $25k for pattern day traders (I believe that's an SEC rule actually).
It looks like their margin rules are pretty standard. They require 50% margin for initial purchase and 25% maintenance margin before a margin call is issued.
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.
