8/12/2019 Quantopian Brings

1/2

Title:

Database:

Quantopian Brings Algorithmic Trading To The Masses. By: Geron,Tomio, Forbes.com, 1/ !/ "1!

Business #ource $remier

Quantopian Brings Algorithmic Trading To The Masses

T%&'

'igh (re)uency trading has been scrutini*ed in recent years because o( its lin+s to (inancialscares li+e the Flash &rash. But the actual algorithms used to po er much o( high(re)uency trading are not ell understood, and loc+ed up in hedge (unds and large(inancial (irms.

#tartup Quantopian, hich is coming out o( beta today, aims to ma+e these algorithms

a-ailable to a much larger audience. The company, hich has raised an unspeci(ied seed(inancing (rom #par+ &apital and mar+et ma+er G%T& , pro-ides bro ser based tools (oranyone ith basic programming +no ledge to create algorithms and simulate actualtrading ith them. 0ohn Fa ce Fa cett started the company in "11 and brought inco(ounder and &T 0ean Bredeche, ho he pre-iously or+ed ith at Tamale #o(t areand Ad-ent #o(t are.

Quantopian pro-ides mar+et and company data (or people to create their algorithms. Theyrite the code on Quantopian2s site, then can run the algorithm on the site2s bac+ testing

simulation to see ho they ould2-e per(ormed historically. All algorithms are pri-ate by

de(ault. Quantopian does not ha-e connections to li-e trading yet, but e-entually plans toadd that so traders can use their algorithms to trade through third party bro+ers.Quantopian has made its bac+ tester tool open source to enable others to assist inde-eloping the tool.

$eople ho trade stoc+s and other securities based on algorithms and other )uantitati-emethods the )uants are a relati-ely small number o( about 1",""" people orld ide,says Fa cett, (ounder and &% o( Quantopian. Most o( the large (irms ha-e built their o nproprietary systems to manage their o n algorithms. As a result, up until no , only those

3isten American Accent

Pgina 1 de 2Quantopian Brings Algorithmic Trading To The Masses: EBSCOhost

2 !"#!2"1$http:!!%e&'a'e&scohost'com!ehost!detail(sid)*aad12#e+a,#2+$c-d+ 1c"+*c2" .d,1",#/'''

8/12/2019 Quantopian Brings

2/2

large firms have had access to the ability to quickly make and test these types ofalgorithms. "We think that's inherently dangerous for the population at large," he says."Things like the flash crash are amplified by the small number of people involved."

People who use uantopian come from a broader variety of backgrounds. !ome are not infinance but are ust interested in testing a trading idea. These people could be a physics

Ph.#.'s, other academics or math or engineering specialists who may not even knowprogramming. The uantopian platform is designed to do for algorithmic trading what$eroku did to make %uby on %ails faster and easier to build web applications, says &ean

redeche, cofounder and (T) at uantopian.

The types of strategies people could develop on uantopian could include technicalstrategies, a classic e*ample of which would be when a + -day moving average crosses a

-day moving average. The other type of strategies are more statistical analyses in whichpeople set some criteria and try to find certain securities that match that criteria. These are

ust basic e*amples, but people can create whatever algorithms they want on the platform.

The company now plans to develop the ability to integrate live trading and also develop itscommunity features. The site's current forum enables people to ask others for help inwriting an algorithm and has become quite active, /awcett says. The site also providessample algorithms that can be "cloned" and changed. uantopian currently doesn't offertools for consumers or average investors to use, but that could be a natural move in thefuture. "0s uantopian becomes successful it will blur the line between someone who's aconsumer and a professional for quantitative trading. That will allow the best ideas toemerge," says 0ndrew Parker, principal at !park (apital.

11111111

y Tomio 2eron, /orbes !taff

(overing social, start-ups and venture capital.

(opyright of /orbes.com is the property of /orbes 3nc. and its content may not be copied oremailed to multiple sites or posted to a listserv without the copyright holder's e*presswritten permission. $owever, users may print, download, or email articles for individual

use.

Pgina 2 de 2Quantopian Brings Algorithmic Trading To The Masses: EBSCOhost

2 !"#!2"1$http:!!%e&'a'e&scohost'com!ehost!detail(sid)*aad12#e+a,#2+$c-d+ 1c"+*c2" .d,1",#/'''