The impact of machine learning and open source resources on quant trading could be described as explosive. At FIA Expo in Chicago, CloudQuant’s CEO Morgan Slade will be discussing how that’s translating into opportunity for a wider variety of participants.
CloudQuant, the trading strategy incubator, has launched its crowd research platform by licensing and allocating risk capital to a trading algorithm. The algorithm licensor will receive a direct share of the strategy’s monthly net trading profits.
Bloomberg recently wrote that “It’s no secret that hedge fund managers are always looking for new sources of data that will help them in their never-ending quest to beat the market.” (1) One of the most interesting new sources of data is social sentiment.
“Everyone is looking into alternative data sets, sometimes without really understanding their value,” says Dr. Arun Verma, Ph.D.,
Alternative data providers see huge potential in providing their data to discretionary asset managers who are losing assets to quantitative and systematic funds.
Although alternative data sets are helping funds with systematic investment strategies, those funds that employ discretionary strategies are finding it harder to separate the new trading signals from the noise.