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Eat My Shorts Strategy

If you want a options premium collecting strategy then add this to your watch list and see the performance over the the next few month prior to adding this to your simulations. I have a detailed description on the strategy page.

Mike

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It was a bumpy ride this week, but some of the premium should come in next week if the sell of cools off for a little bit.

The GME debacle spooked the markets for a few days, but it was short lived. Most of our premium came in this past week. Our drawdown was minimal even with the huge volatility spike.

It’s been 90 days since inception and our rank number has jumped to 163 from 433. We also have realized gains of $5934 which is 11.8% of portfolio growth. Steady growth through options premium selling.

These results post soon on my strategy page. I’ve gotten some messages about how my strategy would perform in a market correction. We experienced a 6% drawdown and lost on one of our legs. However we had a net profit since the positions were defended appropriately. When the VIX/VXN is 20+ it will be a bumpy ride. If you can take the short term pain then profits will roll in. We don’t over leverage ourselves to prevent large losses and or a margin call.

We finished out Q1 up almost 11% YTD trading QQQ. The Nasdaq is only up just over 3% and the S&P is up about 7.5%. Stay tuned…

April was a rough month since the market rallied quick and hard. We were profitable at a 1.2% gain. The subscription fee is going to be waived for the rest of the year. I want to make sure the order fills are almost identical to what the model account is showing. I also have no delay on seeing the closed trades.

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Waiving the subscription fee for the rest of the year is of course very generous to your investors. But realize that once you do set up a fee again, it’s going to be back-calculated to the start of the strategy, even for the months where you waived that fee.

The ideal subscription fee for the size of the account is $200. That is only going to be about 5% off the possible annual returns. One month of profits can pay most of that. I’m doing this to build investor confidence and relationships. I see to many early success strategies take people’s money and blow up in less than a year. That’s not why I’m here and this is the only strategy I have for what C2 offers. Most won’t be comfortable with my aggressive short positions until they see it work for a good period of time. I’m patient and confident in my trades.

Completely agree with you, and I wish a trade leader had more variations in his fee structure. A performance-based fee for instance would be great, but maybe that’s difficult to implement.

My strategy is doesn’t place many trades, and I send out my trades by old-fashioned email the day before. That way, I can set up a more tailored fee structure, like only charging a fee for a profitable month. I use Collective2 as an objective third party to verify my trades.

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The minimum capital needed to trade my strategy is $12,500. My position size for the rest of the year will be a 4 lot. An investor can use less capital an do a 1 lot. I wish C2 had an option for tiered pricing. I would charge that small account $50 and one the same size as the model $200. That way small investors can always join and not get hit with a large fee percentage. Make it happen Matt Klein :grinning:

Traders on C2 don’t manage subs assets, but just sell trade signals only. Profitability and risk level of these signals are independent of the subs capital, unless it is a martingale strategy :slight_smile: ) So from subs point of view there is no reason to compensate the trader more, if his signals are applied to the larger capital.

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Indeed JITF, that’s the whole difference. It’s something that only became clear to me over time. If I’m not mistaking, that’s also the reason why a trade leader doesn’t earn more if investors subscribe with a factor > 1.

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The point is if trade leaders could customize subscription prices on an individuals account size then it would be a win win. This would only be possible if the trade leader knew exactly what each auto trader is allocating (AUM) for that strategy. If I set a $200 subscription fee then I price out everyone under $50K. In reality it would only take $12,500 for a sub to trade at the same scale. Their price should be $50.

If you start to be involved into individual details with the subs, this can be considered as financial service and you may need an appropriate license.

Anyway, c2 already provided their arguments on this many times.

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We can already customize each person’s fees, we just don’t know the capital they have. For C2/your argument we shouldn’t be able to adjust it for each individual.

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