AutoTrade fees are included.
But Dwight’s point is, if a strategy is successful for long periods of time, and is forced to “rescale” back to $50K a few times, that implies that the Starting Capital of the strategy keeps getting smaller and smaller, by a factor of about 20% per rescale.
So after 1 rescale, Starting Capital seems to be $40K
Then after 2 rescales, Starting Capital seems to be $32K
Etc.
Since the current monthly costs are retroactively projected backwards onto starting capital, this does indeed suggest that % returns for those months will be calculated as lower than prior to the rescale.
However, the way C2Star works is that these historical recalcs will not affect current C2Star status. In other words, after a rescale, you won’t suddenly be told, “Hey, guess what, based on the rescaling you just did, you suddenly got dropped from the program because six months ago your performance wasn’t high enough.”
C2Star requirements are always in a go-forward mode.
That said, I agree that this isn’t the best way to handle rescaling. I’ll try to work on making rescaling use historical cost structures when calculating historical performance. (As it stands today, C2 is being overly conservative and using costs that are much higher than were actually in effect.)
Good catch.
