Because the standard alphas that are submitted to other funds, they usually backtest it with years of data. And then let it paper trade for 3-6 months to make a decision on how much to bet upon.
would love to get your insights, since you've experience w hedge funds as well as algos
No way anyone is investing any serious money or money at all on 3 months worth of back testing. Look at the market for the last 3 months. How can you take that seriously? You could have thrown a stone anywhere in the last 3 months and made gains of 1000% it’s not realistic is it?
Because the standard alphas that are submitted to other funds, they usually backtest it with years of data. And then let it paper trade for 3-6 months to make a decision on how much to bet upon.
would love to get your insights, since you've experience w hedge funds as well as algos