Introducing QuantConnect Organizations

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Hi Everyone!

Today we're releasing "Organizations" - this is a layer on top of QuantConnect which lets you scale up and down the components of our services as you need. I'm just going to repost the blog here in case people miss it. For sure there will be bugs and we're working actively to fix them now. Thank you for your patience and support! I'm excited to see what 2020 brings for the QC Community! 

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Today we’re unveiling a new era in power, flexibility, and access for quantitative finance. The QuantConnect Organizations layer allows anyone to harness our platform to launch a quantitative fund, scaling up resources as they grow. Previously, the technical and financial challenges of launching a quantitative fund have stymied new launches, resulting in AUM concentration to the global mega-funds. We believe this is detrimental to the public markets — the world needs a diversity of strategies to strengthen the book when the markets tumble. When assets are concentrated in the hands of a few strategies, the impacts are catastrophic when they fail. This needs to change to ensure greater stability in the markets for everyone.

Since 2012, we have worked passionately to break open access to powerful technology for individuals, giving them the framework, data, and infrastructure to compete in algorithmic trading. Never before has the playing field been so level and rife with opportunities for those who want to pursue quantitative finance. We now have billions in live trading volumes on LEAN (our open-source desktop-cloud hybrid algorithmic trading platform), regular sponsored competitions, and Alpha being licensed from the community. It is a true meritocracy, with the best and brightest from all over the world building off of each other in the QuantConnect community.

As we grew, our community grew with us — many of our users now run start-up funds, fintech companies, or work in larger institutions with more intensive requirements. Because of the historical “one size fits all” approach of QuantConnect pricing, they were hindered in their efforts to bring QuantConnect to their employers or use QuantConnect in their startup.

The Organizations feature breaks apart the pieces of QuantConnect you know and love, allowing you to consume them as needed. Similar to AWS or GCE, you can scale up and down your resource use and only pay for what you use. The nature of scaling up use means that we can keep the platform affordable for individuals, while also allowing it to meet the needs of larger organizations. By better identifying the demographics of the community we can create the features that they want, and that can be made sustainable with a solid business model.

We aim for Organizations to lower the barriers to accessing Alpha Streams by providing Trading Firms and Institutional Subscribers access to license alphas via a smooth user interface, reducing friction for licensing, and increasing the revenues for our community alpha-authors.

Our financial alignment with the community has always been a core value for QuantConnect. With the Organizations feature, we continue to be aligned with you. Our free tier will remain, allowing people to learn and grow as quantitative traders, while the researcher tier with live trading tools can be accessed for just a touch more than it is today. We plan to give generous credit to students, academics, alpha authors, and anyone who needs it.

We are invigorated by this next step in our evolution as we continue to build a global company, creating a meritocracy where your opportunities are based on your ideas and work, regardless of age, race, geography, or educational background.

We’re grateful for the support of the community and commit to continuing to serve you into 2020. Together, we can build a stronger financial system that empowers everyone.

Sincerely,

Jared Broad

Update Backtest





The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.



 
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hi Jared,

Thank you for the update - it sounds all very interesting. 

I had a quick look at the pricing page, and it seems that the equivalent to the old 20$ plan is now 78$, is that right?

Best wishes,

Lorenzo

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Hi Lorenzo! We tried to make it closer to $48 for the old Prime->Researcher. We saw was most people were only running one backtest at a time anyway so this seems like a good fit for them to start. If people want they can also decrease the costs by removing some of the components. We're committed to getting this as low as possible for the community so we're also thinking of ways to offer live trading without the colocation (which is quite expensive). 

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


PS: At the most affordable individuals can still do live trading on institutional grade equipment for just $28 per month =). We'll also continue to give generous credits to academics. It's really important for us to continue to support the individuals who make the QuantConnect community great. 

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hi Jared 

What does Project IP Ownership mean in the pricing?

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Hi Jared, 

Thank you for the clarification and the quick reply. I see your point, but the old plan included 2xB4-12 which now brings the total to 78$. Of course, I understand that these changes have been made with the whole community in mind and that it is impossible to please everyone (by the way, I really like the high customization that has been introduced).

I would just like to leave some feedback here that might be helpful in the future:

1) Although I could have used the student discount, I have always paid the subscription because I really like the QC project and your core values, and LEAN is just beautiful. Unfortunately, being one of the few users that actually made use of the parallel backtesting and the 4CPUcores+12GB RAM the actual price bar is too high for me at the moment, and I will have to wait for some revenues from the alpha stream before re-activating my subscription.

2) For someone that develops an ML or Deep Learning model, in absence of a GPU, it is crucial to have a large RAM and as many CPU cores as possible, and having access to multiple backtests speeds up the tuning of the hyperparameters. Unfortunately, testing these kinds of models on the free tier is unfeasible, and the cost of just trying a new idea would be quite high at the moment (adding a GPU is quite expensive and upgrading to the old 2xB4-12 would translate to 48$ (excluding the research node). Although I guess this would be fine for those that already have some income from the alpha streams, I believe that it might pose quite high a barrier for someone new that would just like to try a few ideas or ML models. 

3) I think it might be beneficial to add a "pay as you go" feature in the future, i.e. one would pay only for the actual CPU or GPU time that consumes, This would be fairer in general and might encourage people to test some ML models for the alpha stream at a lower cost. 

Hope you find this helpful,

Best regards,

Lorenzo

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Hi Jared

Congrats on the update. Will the Research compute add on get around the 30 min limit on ML time when deployed live? As an existing user how do we add this on? 

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Hi Jared!

With the free tier can you still compete in the tournaments that have prizes?

Like alpha the weekly alpha competition?

 

Thanks

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Lorenzo Palmieri I really appreciate your support for QuantConnect despite having a student account =) I would love to make it work for your case; can you help us to get there? For us to offer clusters of 10+ nodes it needs to be self-sustaining so we're trying to make the true "costs of computing break-even" vs a "short term VC-funded loss". The true costs of pure computing for a high-CPU 4-core node are $70-120 per month. A GPU node is about $750 per month (1, 2, 3, 4); ignoring the data licensing fees, engineering salaries, 400TB hosting, and bandwidth costs.  

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Flame  I'll clear up the documentation today; professional trading firms typically sign IP assignment clauses with their employees to make any code they write property of the firm who employs them. This feature makes projects created in the organization mechanically the property of the company. 

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Ryan McMullan - Sorry those compute limits are per node in order to keep the price down for the community overall. Based on feedback like this we're thinking of making an unrestricted node, but it would be at the true cost would be something like 4x here :\. The live limits in live-trading are tricky because its a physical rack and we purchase real servers to host them.

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Emiliano Fraticelli - 100% the free tier can compete in Alpha Streams and competitions. We want to ensure the community opportunities are not restricted by finances, but by your ideas and efforts.  

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


We're building the credit system today; and it should be launched Monday-Tuesday so we can apply a credit to people's organizations. Would people be open to "give back" scenarios; like supporting others in the community for credit? (similar to the tip system which was mentioned in another thread)

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Another idea we're bouncing around is having a non-colocated, cloud live environment for minute bars or higher only; where the strategies are not as latency-sensitive and it can be 50% cheaper to host them. This would also allow us to offer more powerful computing / GPUs for the live environment. What do you think?

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Just a note there's no pressure to upgrade. All prime and professional subscription plans will be honored for at least 1 year 

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


I recently upgraded to QUANT RESEARCHER plan but still hitting the 10000 order limit error during backtest. I guess I need purchase further component/plan to get over this limit. Could you advice the minimum plan it needs? I think it could benefit other to make this information clear.

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Jared,

Very interested in the cheaper cloud solution for those of us that don't need high latency or very short frequency data.  I'd prefer to give-up the more powerful computing/GPU to reduce costs even further.

If others are like me, this announcement triggered research into alternatives, such as hosting our own servers with an affordale provider like Linode ($ 5/m kubernet cluster - multiple algos in one cluster? - 1CPU, 1GB RAM).  That's a huge hassle however, and I'd much prefer to keep doing business with you and QC.  Really appreciate your openness to other ideas and honoring existing subscriptions.

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Hi @Joe, sorry this is a bug which will be fixed Monday. Researcher should be same limits as Prime previously.

Edit: this was fixed.

@Tristan yes noted. We'll work on a cheaper live tier (not colo) in September. It will also come with all the instability of a cloud provider unfortunately. Cloud providers love to reboot your machines without warning.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hi  @Jared, I am glade to hear Quant Researcher plan shouldn't have 10000 order limit (if I understand correct). However I just checked, where the 10000 order limit message is gone, the backtest still stopped at Total Trades = 10001. Any idea?

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Hey Jared Broad,

Congratulations on the update. I really like the organization system along with the high customization. 

You mentioned that the prime and professional subscription plans will be honored for at least 1 year. Could you clarify what exactly that means in terms of the new system?

Also for some reason, my account has an error saying "Organization not found." I'm not exactly sure what that means.

Thanks,

Nibraas

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Joe Yu Zhou - Sorry about that it was a mix up with the old free tier limits. It'll be restored tomorrow morning. 

Nibraas Khan - I've gathered the report-data and we'll fix it tomorrow morning. It looks like a handful of people's accounts didn't migrate perfectly.  

The old subscriptions roughly corresponded to a set of features and resources (e.g. Prime = 2 Servers with 4CPU ea). All subscribers with the old system were pinned in place to continue everything as before. To utilize features in the new system (dynamic scaling) they will need to swap to one of the new plans. 

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


"@Tristan yes noted. We'll work on a cheaper live tier (not colo) in September. It will also come with all the instability of a cloud provider unfortunately. Cloud providers love to reboot your machines without warning."

Thanks Jared!  This will be a great help.  And yeah, I guess you get what you pay for.  However, QC is good at notifying users when a live project has stopped running, so periodic reboots can be addressed fairly efficiently.

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Hi Jared, 

congrats on the update! You and your team have done a really good job and invested a lot of effort, I can see that and I appreciate it. 

The organization layer gives us the ability to better adjust the resources to our needs and to scale up if necessary. But at least equally important is the fact that the new features makes it easier for institutional clients to operate on  the QC stack, which in turn increases the chances of attracting new clients and this in turn leads to higher chances of generating more income streams via the alpha streams market. 

Re: credit system

I like the idea even more than the tip system mentioned in another thread. This will create an incentive to provide  even more assistance to the community. Everybody benefits from this. 

Re: non-colocated servers as cheaper alternative

This would be an option for backtesting/research. But for Live Trading, I'd prefer a system that is as stable and fail-safe as possible. Not sure if the non-colocated servers can provide that. 

Re: prices

As already mentioned by Lorenzo, the corresponding package for the former Prime membership has now become somewhat more expensive ($78 instead of $20). I'm not sure if the old price was even cost-covering, so it might be an unsuitable reference point. But in the end, the community (or at least a substantial part of it) must of course be willing to pay the price. 

In my opinion, there should be a minimal setup for no more than $50/month which suits the needs of most quants here. I think the plan for $48 you've mentioned is a good starting point for this.  

What surprises me is the small price difference between the monthly and annual billing. If I see it right, there is only 10% discount for annual subscriptions + bronze support seat. But for someone who doesn't need the support seat it's equivalent to only 10% discount. Personally, I'd appreciate a higher discount for an annual billing (at least 20%). This would increase incentives to choose the annual version. 

A few more suggestions: 

- I'm pretty sure the Alpha Streams Market causes additional costs, too. (code review, technical ressources etc.) So it might be worth considering that only those members/organizations who have at least one seat (researcher or higher) are allowed to grant access to the alpha market. As a result, other add-ons could be offered at a lower price because the costs caused by the alpha market need less subsidy. I don't think that will scare anyonye since you get acces to the market for as little as $8/month and most serious quants would already have it included. 

- If I see it right, those are always our own nodes which we do not share with others and only uses by ourselves. Since such nodes are unsused most of the time, isn't there a way to offer "community-shared nodes" as a cheaper alternative in addition to the existing Add-Ons? The shared nodes would then have a higher average utilization and would also incur lower costs due to less dry runs. 

All in all, I think your offer is great! And I'm sure the community will not hesitate to scale up their packs once they generate a steady income via the alpha market. 

 

 

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Thank you for the feedback Arthur,

 - Annual Billing/Shared Nodes - I appreciate that with a pure software product its possible to give heavier discounts for annual billing. QC's platform is more akin to an AWS/GCE platform which has to make (expensive) physical purchases of hardware to offer the compute. If you see on other cloud platforms the annual discount is more like 3-5% as the margins are already tight. I'll see what we can do though. Resource sharing & load balancing is baked into the price already. It is a pretty efficient system.

 - Alpha Streams - As much as possible I'd love to keep the equal opportunity by making it so the free tier can participate in Alpha Streams. Requiring a subscription might also classify it as a "pay-to-play" sweepstake with different legal requirements.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Thanks a lot for the update Jared. Any idea with second level data for options will be supported with this release? :) Seems to be the biggest hurdle for my most profitable strategy so far, especially when the market is volatile. 

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Hi Jared,

Congrats on the upgrade/update to the platform. Can you please clarify Project IP Ownership for researcher or individual traders? 

Thanks


 
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Hey Ramesh; I replied here in this comment. Its a way for companies who typically have IP assignment agreements with their employees to own the code of people they add to their organization. The projects are created under the account of the person who owns the organization. If you have a firm/company and are looking to hire consultants to write code for you it ensures if they leave the code is safely stored in your organization. 

For "researchers", and "team" plans it does not apply as the projects created are created under the user account, and collaboration is generally amongst known, trusted parties. 

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hello Quantconnect Team, congratulations on the update, seems a good way to make your offer more flexible. There is only one thing that worries me and is the limit on live trading servers. As you grow on tiers the cost of each additional live trading servers also increase (not much), and you can just have 2-10 (researcher, team). Also, users could be sitting on multiple researcher accounts with just  1 seat and 2 live servers in their organization to run more strategies.

In my case I foresee that live trading server needs will outpace any other resource requiring trading firm tier resources, and many of the additional perks in trading firm are of little use. Is there a possibility to lift the live trading server limits at the lower tiers?

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Hi Jared, any news about the possibility of adding a cheaper non colocated service?

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Hi Hector Barrio - Sorry these tiers were designed that way on purpose. The self-selection based on features is a way for us to determine who is doing this full time while also make it affordable for those individuals/students running part-time or just managing a single investment. The reality is they are very expensive technology and data feeds and we're working to reach economies of scale but we're not there yet. As trading firms join the platform they can self select into higher tiers to access more complex investment infrastructure and make the lower tiers possible for everyone. 

Pier Paolo - No news at this time. Our key focus is on improving the platform to make the value better every day rather than lowering costs. We're pushing on parameter optimization and future options at this time and might have the bandwidth to build the "L-NANO" servers in Jan 2021.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Thanks Jared. Good news yuo are working on Future options, hope that also micro futures will be soon supported as well. 

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Update Backtest





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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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