QuantConnect: An Open-Source Platform for Hedge Funds

QuantConnect: An Open-Source Platform for Hedge Funds

Jared Broad, Founder & CEO, QuantConnectJared Broad, Founder & CEO
The hedge fund and proprietary trading fund space has rapidly transitioned into the digital world, where the modern quantitative funds market is based on algorithmic trading. As part of an efficiency-driven space gaining rapid traction, the multitude of hedge funds today are posed with an increasing challenge of quant costs and limited talent. QuantConnect addresses this problem for the quantitative fund market while revolutionizing the industry’s approach to it through Alpha Streams, a marketplace of alpha for quantitative funds, and LEAN, an open-source algorithmic trading engine. By bringing together nearly 70,000 quantitative professionals across a shared open-source platform, QuantConnect provides unparalleled access to crowd-sourced alpha.

Conventionally, hedge funds and proprietary trading organizations have to undergo long and tedious processes of searching for talent, interviewing hundreds of candidates, and finally, after onboarding a select few, venturing into research to render an optimal quantitative strategy. Alpha Streams provides an entirely new approach for these organizations, allowing them to search for algorithms across a crowd of engineers, identify characteristics they desire, and license signals directly from the community. “We enable these organizations to search the library of algorithms available on Alpha Streams and license them with a simple API call, facilitating access to proven strategies, while distributing revenue to the creators,” says Jared Broad, Founder and CEO of QuantConnect.

Having started out as an advocate of the open-source community in finance, Broad founded the company as an endeavor that was born out of his shared expertise in programming and finance.

Alpha Streams enables proprietary funds to efficiently search for alpha, and distribute license revenues to a global community

After trading personal capital, Broad launched QuantConnect to share technology with others and the company evolved into a platform for hedge funds to run their algorithmic trading strategies.

Now, hundreds of hedge runs are powered by LEAN, QuantConnect’s open source, decentralized, hybrid-cloud proprietary algorithmic trading engine. More than 80 quants, engineers and computer scientists contribute to the LEAN code base and as a pre-tested and peer-reviewed tool, the LEAN infrastructure serves as the backbone to QuantConnect and the funds that use it. “The LEAN platform can jumpstart a fund, allowing them to focus on their alpha instead of the mechanics of building an analysis engine,” states Broad.

As an example of the QuantConnect platform’s dexterity, Broad cites the case study of Abbington Investment Group, a boutique independent wealth and investment management firm, which, with the help of QuantConnect’s LEAN engine, was able to efficiently design quantitative wealth management strategies and then seamlessly deploy those to live trading.

QuantConnect also allows funds to upload their proprietary data to its community, allowing users to analyze it and find the insight within the dataset. “A crowd of unique perspectives can often see things that a fund might have been missed,” states Broad.

Establishing its innovative stature in the proprietary fund trading landscape through its reliable open-source platform, QuantConnect is poised to expand on a global scale with a number of additional projects in the pipeline. With community members from around the world, QuantConnect plans to support backtesting on international markets in Europe, Asia and South America. “We believe international expansion will be one of the most powerful additions to Alpha Streams, allowing the community to find signals from domestic stock markets across the world,” concludes Broad.

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Jared Broad, Founder & CEO

Founded in 2011, QuantConnect offers an open-source algorithmic trading platform, providing over 90,000 quants with access to financial data, cloud computing, and a coding environment to design algorithms. The company’s platform allows the users to develop trading strategies in Python and C#, backtest them, and quickly deploy into trading accounts. The global company has also taken a revolutionary approach to alpha search, which allows proprietary trading funds to search and license alpha through API. QuantConnect’s trading platform performs operations at unparalleled speed with resilient, secure, and lightning-fast execution of live trading algorithms