My algo goes long and short stocks everyday and has a low beta but I didn't get a "constantly hedged" green badge. Can this be a mistake?
https://www.quantopian.com/leaderboard/35/59f18c05c09238661e333b5f
Submitted Contest Algo That Is Constantly Hedged But Didn't Receive The Green Badge?
Hello Jay,
The badges are assigned based on the results of the 2-year backtest that runs with each contest submission. In order to get the Hedged badge, your algorithm's portfolio must have either no holdings, or hold both long and short positions at the end of each day during the 2-year backtest. Most likely, your algorithm didn't meet this criteria for one or more days. I would recommend you going through our Long/Short Equity lecture, and its accompanying sample algorithm, to find some examples of how to structure your strategy.
Also, before submitting an algo to the contest you might want to run a full backtest over the most recent 2 years of data, and go over the results using the "Analyze Backtest" feature on the backtest results page. The resulting pyfolio tearsheet will show you a lot of useful information about your algorithm's performance like its rolling beta to market, position concentration, exposure over time (hedge ratio), among other things. You can find a detailed explanation of each of the plots included in the tearsheet in our Portfolio Analysis lecture.
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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.