Profit Split

tb210201tb210201 Posts: 5

What is the profit split for successful algos people submit? All I see is a share for licensing and I don't understand what that means

Comments

  • ed854585ed854585 Posts: 22

    Our goal is to pay at least 10% of the trading profit. It depends on strategy performance and is negotiated with each algo creator.

  • tb210201tb210201 Posts: 5

    @ed854585 said:
    Our goal is to pay at least 10% of the trading profit. It depends on strategy performance and is negotiated with each algo creator.

    I See! 10% from what kind of profit? What kind of profits are people making?

  • td753764td753764 Posts: 67
    edited July 2017

    What kind of profits are people making?
    The profits that algos are making vary but are also very confidential. CloudQuant doesn't announce that for the public, nor is the name of the algo developer released by CloudQuant. This information is protected by the different legal agreements.
    10% from what kind of profit?
    Profit is calculated in a formula laid out in the license agreement. It is profit after costs that apply to running the algo (i.e. market data costs, losing trades, system costs etc.)
    Keep in mind that the 10% or more is on a strategy that has been funded "at scale." CQ does not want to fund strategies with just a little capital. No, we would rather put a 5-10 million into a trading strategy. That way there is a lot more opportunity for the strategy to make a good return on investment for both the algo creator and for CQ.

  • tb210201tb210201 Posts: 5

    @td753764 said:
    What kind of profits are people making?
    The profits that algos are making vary but are also very confidential. CloudQuant doesn't announce that for the public, nor is the name of the algo developer released by CloudQuant. This information is protected by the different legal agreements.
    10% from what kind of profit?
    Profit is calculated in a formula laid out in the license agreement. It is profit after costs that apply to running the algo (i.e. market data costs, losing trades, system costs etc.)
    Keep in mind that the 10% or more is on a strategy that has been funded "at scale." CQ does not want to fund strategies with just a little capital. No, we would rather put a 5-10 million into a trading strategy. That way there is a lot more opportunity for the strategy to make a good return on investment for both the algo creator and for CQ.

    Thanks!

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