Please explain how C2 limits leverage to 33:1.
My broker account is set to 50:1 and my C2 scaling is over 100. I don’t understand.
C2 limits the leverage that can be used by Strategy Managers inside their C2 Model Accounts. But this does not limit the leverage that an investor (i.e. a “subscriber” to a strategy) can use. Only the subscriber’s broker can do that.
Here’s an example. Imagine a Strategy Manager comes to Collective2 and creates his “Model Account” with a nominal value of $100,000. When he tries to enter a trade signal into C2 using this Model Account, C2 limits the leverage he can use. For forex, where C2 caps leverage at 33:1, that means the manager can place a trade with a value of $3,300,000 using the strategy Model Account. Let’s imagine that the Strategy Manager places a trade with a value of $2,000,000. This implies a leverage of 20:1 – which is allowed by C2.
Now, let’s imagine that this strategy has one single subscriber who uses C2 AutoTrading to replicate into his real brokerage account the trades that happen in the C2 Model Account. Further imagine that the real-life subscriber account only has $50,000 inside it.
If the subscriber is AutoTrading the strategy at 100% scaling, then the subscriber will try to open a trade with a value of $2,000,000. The subscriber’s broker will not necessarily reject the trade, because the leverage implied in opening such a position is 40:1 (allowed in the US for forex; the US generally caps forex leverage at 50:1).
So, in the real life account, the subscriber has effectively chosen to “lever up” the trade published inside the C2 Model Account.
To summarize, C2 imposes a more conservative leverage restriction inside Model Accounts, but this does not mean C2 can control the leverage a subscriber chooses to deploy inside his own real-life brokerage account.
P.S. Let me add my own personal advice: using too much leverage usually ends badly. Trade small, and trade conservative (in the context of your own risk profile).
Matthew
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If a Strategy Manager opens several positions and move SL to BE. He can open more positions with increased leverage but that does not mean higher leverage implies greater risk.
That’s my trading style 
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That is also my opinion, the risk is simply the size of the stop (in percentage of trading capital), regardless of leverage.
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Yes, this strategy has a high leverage, but you can still follow it using C2-scaling an adapting it to your own account, for example down to 10%-scaling instead of 100%, but it’s would be still difficult for smaller accounts.
I chatted with the trader and suggested to start a second Vinculum strategy (same strategy) with a much lower leverage, this way every investor can scale and adapt it to their own personal account.
I also invited the trader to join the discussion… this way everyone wins. 
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I don’t see the “limitation” aspect.
If the 33:1 calculation is based on each trade, wouldn’t the overall leverage be much higher when several trades are opened?
Every time you place a trade in the C2 Model Account, C2 asks itself: “Is there sufficient buying power in the Model Account to allow this particular trade to be placed?”
C2 answers that question by continually recalculating the amount of buying power each already-opened trade “uses up.” Every trade placed in a Model account uses up an amount of buying power. In the case of forex trades, 3% of the nominal value of the trade is “used up.” (I.E. You effectively “get” 33:1 leverage.)
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Hi everyone,
I’m the creator of the Vinculum strategy. Vinculum is based on an algorithm and trades currently up to 12 or less f/x pairs against the USD, short or long. I have 23 yrs of experience in finance and have worked in the fields, including quantitative asset mgt, equity research, and trading. This strategy uses high leverage (30-40x) which enables subscribers to scale down. Trade entry points, closing of winning trades, and stop-losses are all triggered and managed by the algorithm automatically. Stop-losses are managed for each individual position. The strategy takes equally weighted positions in each pair. The average holding period is around 5.7 days. I hope this helps.
Best,
Taurus
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Hi everyone,
I’m the creator of the Vinculum strategy. Vinculum is based on an algorithm and trades currently up to 12 or less f/x pairs against the USD, short or long. I have 23 yrs of experience in finance and have worked in the fields, including quantitative asset mgt, equity research, and trading. This strategy uses high leverage (30-40x) which enables subscribers to scale down. Trade entry points, closing of winning trades, and stop-losses are all triggered and managed by the algorithm automatically. Stop-losses are managed for each individual position. The strategy takes equally weighted positions in each pair. The average holding period is around 5.7 days. I hope this helps.
Best,
Taurus
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with that gain. you just need 100k, you be multi millionaire in like 2 years. heck you doing on c2 for lol
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Hi Taurus,
Impressive results so far, keep it up.
Who is your FX broker by the way?
