Thanks to DBCRYPTO for hosting an exciting and insightful AMA. There were deep discussions about the advantages of algorithm trading and what opportunities AlphaNu’s marketplace offers to both developers and investors.
Let us dive into the top 10 questions and answers from the AMA.
(Note: This AMA has been edited for clarity.)
1. How can I be sure that the algorithm is safe and working as per intended to?
The trading algorithm can be backtested using historical data on our platform. Our systems can make sure the algos don’t have backdoors. All the test result will be hashed and put on blockchain. After you subscribe the algorithm, you can compute the algorithm hash and verify the algorithm hash on the blockchain.
2. Can you elaborate a bit about AlphaNu proprietary technology, novel approaches, and intellectual property that separate it from other solutions? What makes your project special?
On security we use many latest technology on Google/ Amazon, such as multilayer strong authentication. We use mini hardware security module for every user to protect their credential and secret. We adopt Quantum-Proof key-exchange algorithm between the communication on server and client. On blockchain, we will upload proof-of-correctness for every algorithm to make sure the algorithm pass the big data regression testing. The user can verify the trading algorithm download from the site.
3. Why is retail investor participation so high there and why they’re not taking advantage of automated algo-trading?
Because China has controls on money outflow of their country, so its citizens have just two places to invest their money: stocks/futures markets and real estate. Algo trading is still at its infancy in China. There are not a lot of developers with Wall Street experience in China that can produce useful trading algorithms.
4. Do investors have the option to stake as well? If so, what benefits will they be able to derive?
You get access to participate in the growth China’s commodities market, which is the largest in the world and growing at about 25~30% per year. And algorithm trading is only at its infancy in China, with only about 5% of the trades right now being done by computer trading.
5. How do someone implement the AlphaNu algorithm in their day-to-day trading routine?
AlphaNu would be great for day traders. The algorithms you purchase on our platform would greatly reduce the human emotions which can negatively impact most day traders as algorithms buy & sell based on predetermined factors that are programmed in.
6. Is it user-friendly, even for those retail traders?
Yes, it’s very user friendly. All you have to do is download the algorithm and it will automatically trade for you in your brokerage account. We have already connected all the backend APIs and websockets.
7. Is AlphaNu, forked or is it original code?
It is original code and the code evolved for three years. We will integrate public chain sdk into our platform.
8. What current plans do you have to get developers to join the marketplace? Do you have a strong incentive system for developers early on?
AlphaNu offers an international, one stop platform where Wall Street developers can monetize their skills and expertise proportional to the success of the algorithms they create. These developers get access to curated historical trading data, which is otherwise not easily accessible or affordable. Additionally, we help them market their product to a foreign country, which they cannot easily do themselves.
9. With developers being able to sell 50% of their future earnings through revenue contracts, how will the governance of said algorithms work? For example, the developer may wish to remove the algorithm from the ecosystem so that they can provide a superior algorithm, whilst the future earnings investors would likely wish to keep it.
We have a working beta of our developer portal already in the testing phase with various algorithm developer friends of ours on Wall Street. We’ve invited them to test and give feed back
It’s all up to the developer. We as a marketplace are here to provide the best tools to help the developers to grow and manage their business. If they can create a better product to replace their current one, then investors should be just as excited as we are.
10. When can we expect to see working Alpha?
We will have a working platform on September and will invite some developers. And the platform is in internal testing stage. Will open it later.