The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.

Asymmetry and Chaos Program


#61

You heard of james cordier? I bet he had high conviction in his short Natgas trade aswell. Until his entire hedge fund and the accounts of his 290 clients got wiped out. Judging from his update video on youtube I would not be surprised if he commited suicide afterwards.

Conviction gets people killed on the market. It’s always tempting especially when you got some serious experience. But the market is just brutal so you have to brutally control the risk.

Btw you can potentially scale the strategy up to better meet your risk criteria. Contact the support for more info if you feel like changing.


#62

James Cordier sells naked options on natgas. That’s off the chart risky regardless of conviction level. And I will not be surprised if he comes back and raise more funds in a few years. “Sophisticated” investors are remarkable naive on following big names. And selling options gives the impression of consistent income which so appeal to everyone until it blows up overnight.
I eventually had to admit defeat on the trade. I gave it wider latitude than usual but obviously regret it now. It does happen from time to time but I am fully aware of the limited number of errors I can have of this kind. My personal portfolio suffered a great deal from the same trade if it matters.
Lastly, C2 will not allow me to scale up. Only scale down. So I regret starting at such a small base but I will make it work.
Cheers.


#63

Oh man that was the most pathetic thing I have ever seen on youtube.

Literally South Parking it “Poof… and its gone!” $150mm or something like that.


#64

Word on the street has it he blew $200m, more than the $150m capital base so clients owe the clearing firms in the end. Naked option selling has no downside limits, classic asymmetry but the wrong kind. Life of a turkey.


#65

I didnt want to put pressure on you, it was more of a friendly reminder of the biggest pitfall for experienced traders. It happens to the best although it shouldn´t. Every trade idea is worth the same because you can´t predict the outcome - so why risk substantially more on some ideas?

He could have hedged with futures though, even if there was no liquid market for the options. But he did not close the positions, probably because of conviction. Leveraged futures trading also has no relevant downside limit - or lets say the floor is always 0. It´s never the instrument that kills investors, it´s the lack of risk control.


#66

Reminds of televangelist Jimmy Swaggart “I have sinned” speech from 1988. :-0


#67

why does this again coincide around equity high date? @KarlA - you beauty! :slight_smile:


#68

To be fair, KarlA stated that right after a drawdown and I was struggling to cull losing positions. Joke’s on me lol


#69

“Monked?”


#70

Gotta be an error or something. :face_with_monocle:

If not, then yes, “monked” can be the new word for strategy blowup.


#71

i hope so! especially if there are autotraders


#72

Lets hear from the @TheMonk man himself…but methinks its real since he was playing with fire with the huge stops and with such a small account it wouldn’t surprise me he got hit with an overnite big move that stopped him out with slippage.

Stops don’t necessarily mean that you will get out at that price if the move is fast.


#73

I am checking with C2 to correct the error. There were no overnight moves that big for Euro and Silver. My own account has these positions as well but C2 is issuing a margin calls for me. I don’t get it.


#74

C2 removed the “bad tick” so now it’s back to normal.
On the other hand, C2 said they will make an exception for me to rescale up the portfolio. Once I exit the existing position I will contact them to continue from a larger base so I don’t have to use such a large % of margin/equity.


#75

Great move! This small starting capital makes it highly risky. Looking forward to some proper risk control.


#76

I actually started out with $50k but scaled it down to $20k to appeal to a larger audience. Turns out not so good.


#77

Yes those strategies are called high flyers! They start with a bang and end up spectacularly bad 95% of the time (or more). :laughing:

For more serious strategies, proper risk control is necessary for longevity. Typically traders will win statistically 50% in the long run. To have sufficient capital to survive the drawdowns is necessary.


#78

When are they going to do this? Your losses are mounting as your portfolio size is too small to safely hold overnite more than 1 contract.


#79

I need to liquidate my positions orderly first before asking C2 to scale up. Thanks for the concern but I don’t know why you’re so anxious when you’re not even a sub lol.


#80

Now thats an interesting reply…just because I am not a current sub doesn’t mean I won’t be a future sub, right? .

I am not anxious per say just waiting for you to show what you can really do without having to contend with your excuse of over leveraging…lol

After all, most C2 newbies start off with alot of talk and little substance. Just hoping that a few of them actually become a legitimate investable strategy. Is it too much to hope that yours is legitimate?