Your Proprietary Trading Algorithm is always your property on CloudQuant. Any trading strategy that you develop is yours. Not ours.
- You do not transfer ownership of the algo to CloudQuant.
- You do not transfer any copyrights to CloudQuant.
- We have no rights to reverse engineer your algo from you backtest outputs.
This is fundamental to the operations and success of CloudQuant. We are most interested in our relationship with you, the crowd researcher, not an algorithm. Algorithms come and go, but people are what makes our ecosystem extraordinary. We know that over the long run you will come up with many great ideas once you develop your first profitable strategy and license it. We want to develop a mutually profitable partnership with you. It ordinary people with extraordinary ideas on a great platform that will revolutionize the industry.
The User Agreement clearly states the following:
- Everything you submit to the CloudQuant Services is “Input.”
- We may also review the Output… (i.e. the results of the backtest)
Your code, your algo, your data used by your algo are all your “Input” which is specifically exempted from our ownership clause where we protect the services that we run in the cloud:
- Excluding your Input, you acknowledge that we and our licensors have and shall continue to have exclusive ownership of the CloudQuant Services, Our Content, ..
Who See’s my Algos on CloudQuant?
Until you are in the licensing process no one sees your algos or your proprietary inputs.
Our User Agreement (think Terms of Service) specifically states “We will not use performance data in a manner that would reveal the details and workings of the underlying Input.”
The output of your algo, simulated trades, timing of trades, log files etc cannot be used by CloudQuant or any of our affiliates to reverse engineer your trading strategy.
We are interested in seeing the scorecard when you submit your Fund My Strategy request. This covers the following information and is clearly visible on your backtest summary page.
The Licensing Process
The licensing process is where a crowd researcher asks for CloudQuant to review the performance of the algo and to consider licensing it from the algo owner for the purposes of live trading. The process covers:
|Request to “Fund My Strategy”
|Backtest Review Process|
|CloudQuant reviews algo output from algo creators specific backtests.|
|Mutual Non-Discloser Process|
|CloudQuant sends mutual Non-Disclosure Agreement (NDA) to client|
|Client signs mutual Non-Disclosure Agreement (NDA) and sends to CloudQuant|
|Algo Review Process|
|Discuss the algo output and generalities of the algorithm.||Discuss the algo output and generalities of the algorithm.|
|Compliance and Risk Review of Algo|
|Discuss sensitivity studies to determine risk allocation capacity and optimal trade execution|
|License Proposal with Profit Sharing Specifics|
|Agree to License the Algo to CloudQuant?|
|Signed License Agreement|
|Licensed Product Group Operations|
|Setup Operational Procedures||Setup Operational Procedures|
|Complete final compliance and risk management review including reviewing algorithm code and installing required risk and compliance checks.|
|CloudQuant Crowd Supporting Operations runs algo.|
|Regular Reports on Performance and Feedback.|
|Monthly profit sharing|
You can clearly see the steps where an algo creator’s rights are clearly protected with the NDA and the license agreement. At any point in this process either party may stop this process at which point CloudQuant will not use, or attempt to duplicate your algo.
Fund My Strategy Request
When an algo creator requests the “Fund My Strategy” request they see the following statement.
By clicking “Fund My Strategy” you are specifically requesting that Cloudquant LLC, in accordance with the User Agreement, review the Output and Simulation Performance Report (as defined in the User Agreement) for the script you have selected for licensing consideration. If your Input (as defined by the User Agreement) is selected for licensing, we will make a proposal to enter into a profit-sharing licensing agreement and we will Fund Your Strategy with our capital. We will independently fund and operate your strategy. You will receive royalty payments on any net trading profits in accordance with the licensing agreement.
The Algo Belongs to The Algo Creator
During the licensing process, which our users fully control, we will first evaluate the output but only when requested. If the output from your performance reports looks promising, then we both decide to proceed.
We re-affirm that the algo belongs to the user at multiple steps throughout this licensing process. There is language on the website, it is covered in the mutual NDA, and in the licensing agreement.
At no point is the copyright of the algo transferred to CloudQuant.
The algo belongs to the algo creator not to CloudQuant.
We will not operate the algo without a proper license agreement in place.
The algorithms and data that support the algorithms (“Input”) are stored within CloudQuant’s services. They are protected by a username based security mechanism. The services prevent all users from seeing someone else’s algos and input data.
The CloudQuant Employment Agreement
Every CloudQuant employee and contractor signs an employment agreement that clearly specifies that accessing or sharing protected inputs is forbidden. Employees are prevented from duplicating any user algo. This is a very restrictive and specific agreement written to protect the rights of the algo creator and of CloudQuant LLC.
Operating Algos by CloudQuant Crowd Researcher Support Team
Algos are operated by the CloudQuant crowd trader support team known as the Licensed Product Group. They are dedicated to the algo creators and running only those algos licensed from our user community. These traders, are experienced professionals, but are not proprietary traders and do not trade for their own accounts, or for any CloudQuant or Kershner Trading account.
The compliance and risk review ensures that these operators are aware of the generalities of how the algo operates. This is required by our regulators.
The operators are responsible for ensuring that the algo is performing in accordance to agreed upon parameters and within risk parameters.
Information barriers prevent the traders at our parent company, Kershner Trading Group, from having knowledge of our operations in the Licensed Product Group.
The Algo Doesn’t Belong to CloudQuant
Your Proprietary Trading Algorithm is always your property. Any trading strategy that you develop is yours. Not ours. You do not transfer ownership of the algo to CloudQuant. We are most interested in our relationship with you, the crowd researcher, not an algorithm. We know that over the long run you will come up with many great ideas once you develop your first profitable strategy. We want to develop a mutually profitable partnership with you.
We take steps to properly protect your property through legal agreements between you and CloudQuant and between CloudQuant and our team.
We take steps to protect your property with technology.
You can have the utmost confidence in CloudQuant and in everything you do with our cloud services.