What Have We Got—Is It Marketable?

right click on imageTwo components of our algorithm workflow ask “What have we got?” and “Is it marketable?” The algo’s performance answers the first question. How your strategy and your operation rank against your competition will answer the second.

 

 

The Aurum Report contains a gold mine of data on hedge funds' performance. Explore the stats for some of the top hedge funds and get a sense of how marketable your strategy is. While you're browsing, check out the return of my previous employer, D. E. Shaw, on page 74. That is Alpha!

 

 

If your strategy does not clear the bar, don’t give up. Iterate!

 

 

 

Written by Michael Bigger. Follow me on Twitter.