Collective2 Notes

I haven’t posted a general message to members in a while. So allow me to take this opportunity to briefly update you on a few unrelated issues.

(1) Forex Trading Hours

We’ve now improved C2 Forex Trading Hours to match mainstream broker/dealers. For most major forex pairs, trading hours are now 5:30 pm Eastern time to 5:00 pm Eastern the following day. Trading shuts down on Friday night at 5:00 pm, and resumes Sunday at 5:30 pm. For exotic forex pairs, trading may start at at 7:05 pm on Sunday nights. (All EUR, USD, AUD, JPY, CHF, GBP, CAD pairs are considered “major” pairs that trade from 5:30 to 5:00).

(2) C2Tray

If you use TradeStation to enter your trading signals into C2, it is strongly recommended that you upgrade to the c2tray.exe app. (

(3) Overnight Margin Calls

In our quest for ever-increasing verisimilitude, C2 will now issue overnight margin calls if a trading system is using too much capital given its account size. Previously, we only issued margin calls during the day, which may have let over-margined systems sneak through the cracks, due to the fact that C2 recognizes daytrading versus overnight margin. If you receive a margin call, you will be alerted by email and you will have an hour to close positions yourself. Otherwise, C2 will do it for you in whatever sequence it deems appropriate.

(4) Dividends handled automatically

Another recent improvement: C2 will automatically recognize cash dividends and add it to your account if you own a stock prior to the ex-dividend date. Similarly, if you short a stock, cash dividends will be removed from your account.

(5) Rydex and Mutual Funds

Did you know C2 handles mutual funds and Rydex funds? Trade them just like stocks. C2 is smart enough to handle Rydex PM pricing correctly.

(6) Bigger and better servers

Is Collective2 single-handedly keeping Intel and Dell afloat? Sometimes it sure feels like it. Though I have not yet received a personal thank-you note from Michael Dell, I’m sure it will come soon, since C2 has been steadily increasing server capacity as our customer base grows.

(7) Other improvements

There’s a host of other improvements – some minor, some major. Some of them are hidden deep in the bowels of our software plumbing, and thus invisible to users, while others are rather obvious. I won’t bore you with them, but I do want to point out that C2 is always evolving, and (hopefully) always improving. Your feedback and suggestions matter. Please keep them coming.

A personal note about Matthew

Here’s an interesting fact. Did you know that in addition to running Collective2, I also write suspense/thriller novels? My first book will be published in the U.S. by Warner Books next winter. Another book will be published a bit sooner in other countries/languages. I will certainly alert you all when they are available for purchase, because – believe me – I need to sell every copy I possibly can. But the reason I tell you this is to explain that I owe a new draft of a manuscript to an editor, and it’s coming due, and so I may be a bit preoccupied these next few weeks. I’ll still be here to take care of your needs, but site enhancements may slow down for a few weeks. After that, we’ll be back and running at full speed.



These are all excellent improvements. The margin call issue is appropriate for I have seen a number of trading strategies recently that have exceeded any realism in cash and risk management. The “realism factor” gauge does help in evaluating whether a strategy is worthy of following, but it doesn’t prevent some traders from exceeding margin limits that are used within the industry.

With regards to dividends, I didn’t understand the logic that if one is short the stock at time of ex-dividend, Collective2 would reduce the value from the portfolio. I had to think about that for a minute, but then realized that there are underlying costs to the short-seller. Any broker will charge a client carrying costs on short-seller’s margin requirements. Otherwise, if the broker doesn’t provide the buy-side to the short-sellers position then you got a naked position. And recent articles are shedding some light in this area of the industry, where some brokerage houses are taking the short-sellers trade but not providing the buy-side leaving the short-seller “naked”. But that is the inherent risk that a short-seller faces - will the shares be there when they wish to cover their short position. I now understand why this new provision of negative impact for short-sellers.

I applaud the investing provision of Rydex mutual funds. We monitor our performance against a similar mutual fund - Profunds. The ease in which an investor can move between a bull and bear fund after the close works well into our strategy.

One finally note - I applaud anybody that can write a “spicey” mystery novel. Are you shooting for an Edgar Award?

Thanks for all of your hard work.


"Similarly, if you short a stock, cash dividends will be removed from your account."

I hope you’re talking about the systems C2 account here, not my personal account? :slight_smile: just kidding.

Thanks for the update.