> ## Documentation Index
> Fetch the complete documentation index at: https://docs.clypt.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Trading Competitions

> Hedge fund-style trading competitions on the Clypt platform

## Overview

Clypt will host **hedge fund-style trading competitions** where participants compete using ClyptQ strategies in tournament formats. Competitions serve as a proving ground for strategy development, community engagement, and a pipeline for discovering top trading talent.

## Competition Format

### Tournament Structure

```mermaid theme={null}
%%{init: {'theme': 'base', 'themeVariables': { 'primaryColor': '#1e293b', 'primaryTextColor': '#e2e8f0', 'primaryBorderColor': '#94F1E8', 'lineColor': '#5bb8b0', 'clusterBkg': '#0f172a', 'clusterBorder': '#1e3a3a', 'titleColor': '#94F1E8', 'edgeLabelBackground': 'transparent' }}}%%
flowchart LR
    classDef action fill:#172554,stroke:#60a5fa,stroke-width:1.5px,color:#bfdbfe
    classDef success fill:#0f2d2b,stroke:#2dd4bf,stroke-width:1.5px,color:#ccfbf1

    A["Registration<br><i>Submit strategy</i>"] --> B["Qualifying Round<br><i>Backtest validation</i>"]
    B --> C["Semi-Finals<br><i>Paper trading</i>"]
    C --> D["Finals<br><i>Live trading</i>"]
    D --> E["Capital Allocation<br><i>Top performers get AUM</i>"]

    class D action
    class E success
```

### Qualifying Round (Backtest)

Participants submit strategies via the platform. All strategies undergo:

1. **Cross-exchange validation** — Same strategy tested on unseen exchange data
2. **Cost model verification** — Realistic fees, slippage, funding rates applied
3. **Lookahead bias check** — Structural verification via ClyptQ's RollingBuffer architecture

Only strategies that pass all validation gates advance.

### Semi-Finals (Paper Trading)

Qualifying strategies run in **paper trading mode** for a fixed period (e.g., 30 days):

* Real-time market data via WebSocket
* Simulated execution with realistic fills
* Same graph, same code — only the data source changes

### Finals (Live Trading)

Top performers receive small capital allocations for **live trading**:

* Real execution on supported exchanges
* Risk limits enforced by the platform
* Performance tracked in real-time on public leaderboard

## Scoring Methodology

Competitions score strategies on risk-adjusted metrics, not raw returns:

| Metric                         | Weight | Why                           |
| ------------------------------ | ------ | ----------------------------- |
| **Sharpe Ratio**               | 30%    | Risk-adjusted returns         |
| **Max Drawdown**               | 20%    | Downside risk control         |
| **Calmar Ratio**               | 15%    | Return per unit of drawdown   |
| **Cross-Exchange Consistency** | 15%    | Robustness across venues      |
| **Scale Stability**            | 10%    | Performance at larger capital |
| **Turnover Efficiency**        | 10%    | Transaction cost awareness    |

Raw returns without risk adjustment are explicitly penalized — this prevents strategies that simply take maximum leverage.

## Capital Allocation Pipeline

Top competition performers become eligible for the **Marketplace Capital Program**:

1. **Competition Winner** — Featured strategy listing on marketplace
2. **Consistent Top 10** — Capital allocation from platform or partner funds
3. **Multi-competition Winner** — Direct fund allocation opportunity

This creates a hedge fund talent pipeline through the platform.

## Anti-Gaming Measures

| Measure                        | What It Prevents                        |
| ------------------------------ | --------------------------------------- |
| **Cross-exchange validation**  | Overfitting to single-exchange patterns |
| **Randomized test periods**    | Data-mining and curve-fitting           |
| **Code parity enforcement**    | Different backtest vs live logic        |
| **Position limit constraints** | Excessive concentration risk            |

## Revenue Model

| Revenue Stream     | Description                                        |
| ------------------ | -------------------------------------------------- |
| **Entry fees**     | Per-competition entry fee                          |
| **Sponsorships**   | Exchange and data provider sponsorships            |
| **AUM fees**       | Management/performance fees on allocated capital   |
| **Premium access** | Advanced analytics and custom competition creation |

## Timeline

Competitions launch in **Phase 4** of the roadmap, after:

* Strategy marketplace is established (Phase 1-2)
* Sufficient builder community exists
* Cross-exchange validation is battle-tested

## Related Pages

<CardGroup cols={2}>
  <Card title="Marketplace" icon="store" href="/platform/marketplace">
    Strategy verification and listing process
  </Card>

  <Card title="Builder Guide" icon="hammer" href="/platform/builder-guide">
    How to build strategies for competitions
  </Card>
</CardGroup>