The max open-loss of $2k (about 4% loss) seems very tight. Moreover, if triggered it would throw the system out as I understand it, then we rinse/repeat, pay another $199 to restart and wait 60 days… that is a problem, as a 4% loss is highly probably even with the best intentions.
With overnight positions on most equity strats (even hedged strats like the ones I am running), this 4% is most likely to trigger even the most prudent strategies at some point during a 6-12 month period - it is just the law of averages.
Can I ask - how did you come up with this number of 4%? There is the cynic in me (probably completely wrong) which wants to believe the c2Star program was probably designed more as a revenue stream for c2 where wannabe stars will just keep resetting and paying this fee for the opportunity. Cynical I know!
The optimist in me likes the direction c2 is going, to make strategies more risk-conscious and appealing to a wider audience.
I think another look at the throw-out rules, eg., 4% open-loss rule needs a second look at this beta stage - the following are suggestions…
Maximum Open Loss as percent of equity: 7.5%
Maximum Open Loss: ($3,750)
Maximum Equity Drawdown: (7.5%) rolling 24 hours
Maximum Equity Drawdown: ($3,750) rolling 24 hours
Maximum Equity Drawdown: ($5,000) All Time - No changes to this last rule.
The c2Star program is too restrictive to be based on reality in trading, as most systems will be thrown out, even the most astute ones, at 4% and 5% d/d