"Capitalize on Volatility" strategy

Does anywone trade real money with this strategy ?
Stats are really good but no reviews yet.


First, always provide a link to the system if you’re asking questions on here - you’ll get more responses.

About the system - since this guy has actually had subscribers (late august), he is up 13% with a 29% max drawdown. All his money was made before he had any subscribers. His big trades that made the account shoot up last year (before subscribers) were selling naked options, alot of them. If those had even moved $1 in the wrong direction he would have lost 50% very quick.

I would never touch this thing.

Good luck.

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Totally agree with him, especially the way IB implement high margin for volatility products. We are talking short option margin requirements at IB can be 200%-300%. I will not touch this kind of model.

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I hope that you saved that guy a lot of money. You nailed it!



Thanks a lot for your answers. I’ll definitly avoid this strategy…returns were looking too good to be true :crazy_face::sweat:
Do you have a strategy to recommand for a $15,000 capital investment ?

Thx again have a day.

This one look pretty nice UDOW TREND SIGNALS
The trader is trading is own money which is a good signal to valid a strategy, don’t you think ? :thinking:

Seriously? Dude just had 20% drawdown on single trade. Did you look at the chart? I assume you are joking.

I am not pointing finger at the system mentioned, but in general i differ in my view with most people regarding TOS. Now a very high percentage of retail traders lose money. Now if a big sample size of them come here and start a system with TOS, does it mean you will be better off? I am not sure. I believe the opposite is true for average trader/adviser. If his/her money is not involved, he/she might be able to make a rational decision. Of course it will be a plus to see TOS from a great trader - but there is no way to differentiate them from the average one here on C2 as most systems have short history. Moreover, if you look at the systems that went bust, there are plenty which are TOS. But I can say there are some promising TOS systems here, but TOS alone will not make you profitable

How come the trade record doesn’t show the drawdown you mentioned ?

After looking to the chart it appears it is a 16.6% drawdown = back to begining of january captial…the trader loose the profit from the climax run we just had.

Yes you may be right.
Is there any stable strategy on C2 ?

Last spring I analyzed 30-day returns and found no significant relationship between TOS and returns over the next 30 days–admittedly a very short period. Leaving aside perverse predictors (high fees are bad, high Sharpe Ratio is bad, high Annualized Return is bad), the data suggested that one should look at high 60-day returns, low correlation to the S&P 500, and longer strategy age.

Among strategies with at least a 30 C2 Score, the best predictor of performance over the last 30 days was subscription cost (Pearson correl. r=-.169). The lower the subscription cost (a month ago), the better the performance over the last 30 days.

The other significant predictors were:

• Log of (Annual Returns w Trading Costs +1): -.164; Higher annual returns as of a month ago did worse going forward 30 days
• Sharpe Ratio: -.140; Higher ratios did worse
• Annual Returns w/out fees: -.119; Higher returns did worse
• Last 60 days return: .118; Higher recent returns did BETTER going forward
• Correl. To SP500: -.117; Lower correlations did BETTER


Among the most interesting insignificant results were:

• Longer strategy age had a positive coefficient on 30-day returns going forward (.042);
• Higher drawdowns had a tiny negative coefficient (-.009);
• Higher winning percentage had a tiny negative coefficient (-.009).

In the regression models, which were confounded by high multicollinearity, longer strategy age (and its log) usually had a significant positive effect on returns, controlling for other variables.


Trades won’t show up until they are closed.

Now he’s working on a 26% drawdown. Please don’t invest with garbage systems like this unless you are prepared to lose 50% or ALL of your capital.

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