You can build your own system, hand your capital to a hedge fund, or license proven software and keep 100% of what it makes. Algo Alpha is the third option — a flat software model, like any modern SaaS: a one-time license and a monthly subscription. No performance fees. No profit splits. Your account, your returns.
An investor starts with $500,000 and has a +50% year — a $250,000 gross gain. Here's who actually keeps it.
Hypothetical illustration of fee mechanics using a $500,000 balance and an assumed 50% gross return. This is not a prediction, projection, or guarantee of performance, and is not a claim that any account will achieve these results. Hedge fund fees, minimums, and terms vary widely. Trading involves substantial risk of loss; past performance is not indicative of future results.
Assume both earn the same 30% gross per year on $500,000 for five years. The hedge fund's 2-and-20 is skimmed every year; with Algo Alpha it isn't. Same performance — the only difference is fees.
(This isolates the cost of fees on identical returns — not a performance projection. See note below.)
| Year | Hedge Fund · 2 & 20 | Algo Alpha |
|---|---|---|
| Start | $500,000 | $500,000 |
| Year 1 | $610,000 | $650,000 |
| Year 2 | $744,200 | $845,000 |
| Year 3 | $907,924 | $1,098,500 |
| Year 4 | $1,107,667 | $1,428,050 |
| Year 5 | $1,351,354 | $1,856,465 |
Hypothetical illustration. Assumes a $500,000 starting balance and an identical 30% gross annual return for both, compounded over five years; the hedge fund is modeled with a simplified 2% annual management fee plus a 20% performance fee on the annual gain (≈22% net per year), and Algo Alpha with no performance fee or profit split (a flat software fee is not modeled here). This is not a prediction, projection, or guarantee of performance — it isolates the effect of fees on identical returns. Fund fees and terms vary widely. Trading involves substantial risk of loss; past performance is not indicative of future results.
A hedge fund charges you to manage your money and again when it makes any. Algo Alpha charges once for the software and a flat subscription to run it — the returns are yours.
Build-your-own costs you years. A hedge fund costs you fees and control. Algo Alpha costs you a flat software fee — and leaves the returns where they belong.
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