I'm a quant and several funds are interested in my algo. How not to get F'ed during their due diligence?

They are asking a lot of legitimate questions which give them a look into the model's risk/performance profile and how it fits or doesn't fit (they want uncorrelated obviously) into their current portfolio of models and regarding correlation to their benchmarks. I really want to provide the info, it's only fair but at a certain point they can just look at charts and reverse engineer the algo since it's not too complicated/overoptimized. For example, if they have a list of all timestamped trades, it would not be hard.

I've heard of some unethical funds basically using due diligence/outside quant review process to reverse engineer the logic and then tell the quant to f off. Probably an exception to the rule but I'm a bit concerned.

Any advice, please?

3 Comments
 

Back-test yo shit homie and don't share the code or general source of data!

 

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