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A quant fund vs. a trading bot
So the results of the Trality trading competition are in.
Trality builds software platforms that allow traders to create bots and put them on a shelf so retail investors can see different performances and choose the strategy they like most to invest in.
They also have regular competitions for traders and bots, and at this particular competition, 1st award prize was $3K, and here are the results for this round.
As you can see, the top performance that has won the competition has shown around 150% profit in six weeks. Not bad, hah?
So if there are performances like this in public, why don’t institutions and banks write contracts with these proven traders to give more lucrative options to their clients or themselves? Why do many wealthy people, e.g., Elon Musk, not hire these traders to turn $100M into $250M in six weeks?
You’re right! It’s risky, and there’s no guarantee of achieving the same result in the next month or the month after.
The risk of not getting 150% profit every six weeks is called overfitting. It means you’ve created a trading strategy that is too close (fit) to the current market situation and it’s unlikely you can repeat similar gains later on.
What we’ve achieved so far in Eveince was to address overfitting and still outperforming all fund objectives.
Drop us an email to info at eveince dot com to get more information about investing in our funds and take a look at our factsheets for more detail about our funds.
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