26/07/2026, 16:23 Osmosis Allocation Guide for Consultants | WorldQuant BRAIN
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Osmosis Allocation Guide for Consultants
Table of Contents
1. What is Osmosis?
2. How to allocate points?
3. Allocation Requirements
4. Where can you see your Osmosis allocation?
Daily Osmosis Rank (base payments)
Combined Osmosis Performance (Genius combo)
5. Can Combined Osmosis performance change significantly from month to month, if I made no
changes to my Osmosis allocations?
6. Actionable tips for potentially building a good Osmosis combo
What is Osmosis?
Osmosis is your personal combo of Alphas, built from the points you allocate across your Alpha
pool in different scopes (region x delay). The Platform then:
Computes the PNL of this combination of Alphas every day
Uses this combo performance:
As a theme multiplier in daily base payment
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As Combined Osmosis Performance in Genius to help inform quarterly payments
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As Daily Osmosis Rank metric on the leaderboard
How to allocate points?
1. Use the Properties section on the Alphas' page to allocate Osmosis points to Alphas:
2. Use the Submitted Alphas table to edit Osmosis points directly
Hover over the Osmosis Points cell for any Alpha: you will see a text cursor and an edit icon appear.
Click and update your Osmosis Points value directly inline. After saving:
✅A green check mark confirms the update was successful. It does not mean that you have allocated
the right number of points or Alphas across scopes
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❗A red warning Simulate
icon appears if the update failed,
Alphas
along with aData
Learn
tooltip explaining
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the reason
Genius Competitions (8)
Hover over the green preview icon in the leftmost column to view the Alpha expression.
3. Osmosis Scale
Osmosis Scale allows you to automatically scale all eligible scopes to 100,000 Osmosis points in a
single action, saving you the time of adjusting each scope manually.
How to Use
1. Go to the Alphas page and select the Submitted tab.
2. The Osmosis Scale button sits right next to the Filter button and is clickable only when you have
allocated points to at least 10 Alphas, and they need to be scaled to 100,000 Osmosis points. If a
scope already has 100,000 points, or has fewer than 10 Alphas allocated, the Osmosis Scale button
will be disabled.
3. A dialog will appear listing all your eligible scopes, showing the current point allocation and the
number of Alphas in each scope.
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4. Click "Scale All to 100,000" to confirm to scale all listed scopes at once.
Allocation Requirements
You need to allocate Osmosis points each to at least 3 scopes (regionxdelay combinations allowed by
your Genius level). Within each scope, you need to allocate exactly 100k points to at least 10 Alphas.
You can allocate to
All types of Alphas: regular, Atom, Power Pool, SuperAlphas etc
Alphas submitted at any date, not just recent submissions
No minimum per Alpha, but total allocation per scope must equal 100,000 points.
Points lock weekly
Your allocations as of every Sunday 23:59 hrs EST are then used for all daily combo calculations
after 7 days.
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Example: points that lock in on
Simulate
8th Feb 2026Learn
Alphas
(Sunday) will Data
be used for the daily combo
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calculations starting from 16th Feb to 22nd Feb.
You can change points anytime. There is no penalty for changing allocations multiple times, but only
the allocations as of Sunday night are used.
Where can you see your Osmosis allocation?
On the Genius Status Page > Osmosis Allocation
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On the Genius Status Page > Combined Osmosis Performance: It shows your long‑term after‑cost
Sharpe from stitching weekly Osmosis combos over the Genius quarter.
As Daily Osmosis Rank on Consultant Leaderboard: It is the Rank of one day’s PNL of your Osmosis
Combo across all consultants, updated daily using your Osmosis allocation from two Sundays ago. It
will remain blank if you don’t have a valid allocation.
Daily Osmosis Rank (base payments)
For each scope (regionxdelay), with your Osmosis points allocation from two Sundays ago, the
Platform computes one day’s PNL (from 2 years ago in the out-sample period)
Then ranks each scope’s PNL among consultants, to get your scope rank
Next, calculates average of all your scope ranks. This average is your Daily Osmosis Rank, which is
applied as a quality factor multiplier for your daily base payment. Value of the multiplier ranges
between 1 and 2 and is updated daily
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Averaging only considers
Simulate
scopes where
Alphas
you've allocated
Learn
points Data
(not all possible
Labs
scopes). Genius Competitions (8)
Performance is not proportional to number of scopes, though variety helps minimize drawdowns.
Diversifying across regions helps with portfolio robustness.
Combined Osmosis Performance (Genius combo)
Each Sunday’s Osmosis allocation generates your after-cost PNL. All your after-cost PNLs across
Sundays are combined to generate after-cost Sharpe for the quarter, which is the Combined Osmosis
Performance.
Updated every 4-6 weeks.
You need to have a correct allocation of points for at least 6 weeks in previous 3-months to be eligible
for getting a Combined Osmosis Performance
Max of Combined Alpha Performance, Combined Selected Alphas Performance, Combined Power
Pool Alpha Performance and Combined Osmosis Performance is used in the Genius eligibility criteria.
Can Combined Osmosis performance change significantly from
month to month, if I made no changes to my Osmosis
allocations?
Combined Osmosis performance is evaluated on a short rolling 3-month period, so significant
performance variations can happen even when your Osmosis selection remains unchanged. Even
with identical Osmosis Alpha selections across successive periods, we observe high dispersion in
results, though correlations do exist. Other Combined Alpha performance metrics are evaluated on
longer rolling periods, which is why you may see different volatility patterns across your performance
metrics.
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What this means for you:
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It is normal to see some fluctuation in your Combined Osmosis Performance across months,
especially given the short evaluation window
Focus on consistent, quality Osmosis allocations rather than reacting to short-term performance
swings
Monitor your performance trends over the full quarter for a more accurate picture of your combo's
effectiveness
Actionable tips for potentially building a good Osmosis combo
Start with your best Alphas: Prioritize Alphas with unique ideas, no random mixing of expressions.
Don’t waste points on Alphas that don't have a strong economic rationale.
Diversify across scopes: Use more than the bare minimum of 3 scopes when possible.
Mix major scopes (e.g., USA, GLB) with others where you have strong Alphas. Allocate many Alphas in
regions that have been prioritized in opportunity webinars. Check the Osmosis Allocation table for
balance points remaining to be allocated.
Diversify across datasets: Avoid concentration in specific datasets or category. Cover many
datasets and categories to avoid large drawdowns. Occam's Razor: If you have multiple
submissions on the same dataset using the same idea, prioritize the simpler one with strongest
economic rationale
Diversify across Operators and Neutralizations: Each operator or neutralization has nuances.
Overexposure to one can cause all your Alphas to drawdown together and led to negative
returns in Combined Osmosis Performance.
Control volatility: Concentrated combos can create big swings. Aim for steady positive returns
with reasonable risk.
Avoid frequent radical reshuffles: Use gradual adjustments and evaluate over weeks, not
days. So you can track impact of your adjustments.
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Use SuperAlpha Simulate
selection table to analyze a large
Alphas
pool of Alphas.
Learn Data
This will help
Labs
you diversify your
Genius Competitions (8)
signals across Datasets, Dataset categories, Turnover ranges and Alpha ideas
Add a custom tag to your important Alphas, so you can filter them quickly later
Exclude Alphas whose Sharpe ratio declines by approximately 60% or more after investability
constraints are applied, except when:
- the Alpha is unique within the selection, or
- the Alpha is based on a different dataset
Classify Alphas by turnover into buckets: <10%, 10–20%, and >20%; avoid alphas with turnover above
20% unless their investability-constrained Sharpe remains robust
Re-run simulations for previously submitted Alphas without MaxTradeOn by enabling MaxTradeOn;
retain these Alphas only if their performance remains satisfactory
Use Alphas lists to evaluate intra-set correlations and eliminate Alphas that exhibit high mutual
correlation
Examine individual PnL profiles and remove Alphas that experience drawdowns concurrently with
others
Apply SuperAlpha to the shortlisted set and assess the combined Sharpe ratio after investability
constraints and MaxTradeOn are incorporated
Consider high-quality legacy Alphas developed prior to PowerPool or Atom; the Osmosis Alpha set is
not limited to those newer Alpha types
Aim to include a larger number of high-quality Alphas, as this generally enhances Osmosis
combination performance
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