Our process.

Unlike others, Legion is a quantitative investment firm.

Quantitative investing is utilized by the world's most successful hedge funds such as Two Sigma, Renaissance Technologies, and AQR Capital. A typical investment with these firms requires an upfront commitment of millions of dollars. 

We built Legion in order to make quantitative investing more accessible with no minimum commitments, no lock up periods, and a level of transparency unparalleled in the industry.

Legion's process
for developing an investment strategy.

Step 1:

Identify a pattern.

Legion's research team is combing through hundreds of publications and thousands of research papers to look for methods that can identify patterns that 'predict' the movement of certain securities or groups of securities.

Step 2:

Acquire the data.

Once we've identified a pattern, we go and license the datasets necessary to further validate if the pattern has the potential to be deemed an investment strategy. 

There are tens of thousands of datasets available to Legion's investment strategies. Often times the same type of data can have meaningful differences depending on the provider and testing is required for each one to make sure we're getting the best outcomes.

Step 3:

Develop and test.

The Legion team then develops the algorithms behind the investment strategy and deploys it to the Legion platform. Our team then analyzes how it would have played out retrospectively using historical data. This is called backtesting.

For this to be accurate, the implementation must be tuned so that the historical data is only incorporated after the investment strategy has made its decisions.

Step 4:

αlpha deployment

We then privately test the investment strategy to validate how it interacts in live trading. 

Once it's proven to meet it's intended investment objective, we launch the strategy onto the Legion App for all of our clients to invest in.

Step 5:

Launch an investment strategy.

Once an investment strategy is launched, it must continue to meet or exceed its underlying investment objective.

The Legion team will continuously add/remove/modify the algorithm and data sources in order to maintain the investment objective. You don't have to do anything.

If an investment strategy no longer meets our standards, we will elect to discontinue the strategy and return investor's money back to their accounts.

See even more details.

Each investment strategy is unique in its construction. We explain each investment strategy's investment philosophy, the systems and datasets it relies on, and how a hedge is constructed in the strategy factsheets.

Key Facts