I wanted to ask/discuss a little bit about how Numerai compares to previous attempts to crowdsource trading strategy, Quantopian (and their demise ) comes to my mind when thinking about this. For those who don’t know quantopian was a platform to develop trading strategies, it provided a research interface, stock market data, and some interesting tools for backtesting ( zipline, alphalens, pyfolio ) the company was initially born with the idea of crowdsourcing strategies and reward the authors of the most original and profitable strategy. The company shut down last year (acquired by Robinhood I think) they were ultimately not able to monetize hundreds of strategies and most strategies were just overfitting.
It seems to be hard to capitalize crowdsourced strategies, quantopian guys tried for years and they couldn’t really crack it in the end.
I’d like to hear what your opinions on this, I’m not suggesting the exact same thing will happen to numerai, but If would be interesting to discuss the differences and similarities between the two approaches and perhaps identify potential pitfalls and learn from the past mistakes ( without ovefitting of course)
Thanks everyone and happy Numeraing