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Just wanted to put this suggestion out to @MatthewKlein and other Tradeleaders to start a dialogue on this forum…
The recent hike in commissions (from 30% to 50%) has probably led many good strategy developers to become less motivated to share their methods. I know I personally invest a great deal in fundamental data, screening, yCharts subscriptions etc., to fully test my methods, for which a 30% fee for sharing seems reasonable. But 50%??
My suggestion would be for Matthew/Rod to consider dropping the fee back to 30% for Tradeleaders who produce a solid 6 months (or longer) track record, based on some minimums. These can be for instance (1) low margin usage, (2) maximum drawdown limit, (3) strategy has to perform at least 10% better than the SP benchmark. Etc.
The plan could initially charge 50%, but reduce to 30% on qualification after 6 months. This would motivate the better medium-longer term thinking strategy developers to build a qualitative element to C2.
The 50% comm can apply as a default, so C2 cannot lose. It is a win-win, and gets us to work hard on qualitative strats.
this would mostly never happen. i suggest you start making a post about not going 50/50 split permanently. I think by 2020 it will go to 50/50, then 60/40 after. Eventually c2 will be around 70/30 like most brokerage firm split in US.
If it goes the direction of higher fees, more and more good strategies will leave and get better deals elsewhere. Just not worth it if the split keeps widening, it’s already stretched imo…
With a strong 6 month LIVE track record and a Sharpe north of 3 it’s not hard to attract outside capital and make a heck of a lot more than what’s possible on C2, just saying
So much for the vision of a ‘distributed hedge fund’ - unlikely to ever happen. Credit to @MatthewKlein for actually trying against all odds, but the more I spend time on C2 trying to build a quality strategy which I genuinely want to share, the more offputting this experience becomes - most strats here are really worthless, and C2 does wreak of knowing complicity by profiting from it. I am contemplating shutting up shop here.
Isn’t the yearly 3-4K option basically you get to keep 100% split? I would grow subscribers to a point where that amount is covered and just switch to that.
I’m still testing the waters here have had bad experiences with every strategy I’ve subscribed too, now testing the water on the opposite end of providing a strategy, but if it becomes to much of a hassle, or if there aren’t subscribers I might just shut it down and not share anymore, giving it 6 months to see what happens.
