There are several whole industries revolving around paying people for help with trading strategies. Most have very specialized economics.
A hedge fund requires capital to operate, and the owners can't necessarily cover fixed costs (salaries, etc) with their own personal capital. I'd be surprised if many of the strategies on collective2 fit this model
Investment advisers often fine tune a strategy to match your personal risks - i.e., help Southwest Airlines hedge their exposure to gas prices, or Apple to hedge their exposure to the RMB. Since Southwest is already short oil due to being an airline, the trading strategy of going long evens them out. It wouldn't make sense for me to trade this strategy, since I don't have an intrinsic short position in oil (plus the alpha in Southwest's strategy comes from selling flights, not oil).
If you let a dozen people use your strategy, does acting on that information give you much of an advantage?
Buy $10k of some low volume stock. Have a few other people pile on and buy the same stock (after you). The price will go up a few cents. Then you sell, probably to the same people buying from you. This is called frontrunning. If you didn't frontrun, you bear the risk that one of your renters would buy the shares before you do, thereby driving up the price before you purchase it. Less of an issue with GOOG, admittedly.
A hedge fund requires capital to operate, and the owners can't necessarily cover fixed costs (salaries, etc) with their own personal capital. I'd be surprised if many of the strategies on collective2 fit this model
Investment advisers often fine tune a strategy to match your personal risks - i.e., help Southwest Airlines hedge their exposure to gas prices, or Apple to hedge their exposure to the RMB. Since Southwest is already short oil due to being an airline, the trading strategy of going long evens them out. It wouldn't make sense for me to trade this strategy, since I don't have an intrinsic short position in oil (plus the alpha in Southwest's strategy comes from selling flights, not oil).
If you let a dozen people use your strategy, does acting on that information give you much of an advantage?
Buy $10k of some low volume stock. Have a few other people pile on and buy the same stock (after you). The price will go up a few cents. Then you sell, probably to the same people buying from you. This is called frontrunning. If you didn't frontrun, you bear the risk that one of your renters would buy the shares before you do, thereby driving up the price before you purchase it. Less of an issue with GOOG, admittedly.