Is it even worth it?
@NextLevelTrader
Sorry. I didnât understand your question. If you were asking if it is worth to rescale the strategy, the answer is yes. Because if equity stays above 60k for more than 10 days I lose the C2Star certification.
I meant is it even worth it trying to keep the qualifications for C2star certification?
People comment about it not being feasible long term.
Ok. Now I understand your question. 
From my point of view the concept is spot on, but the criteria can be optimized. For instance, for a medium to long term strategy, it is just a question of time to reach the drawdown criteria. But I guess that even for any type of strategy this is true, and my guess is backed up by the fact that the oldest C2Star strategy has only 10 months, starting just after the big drop.
Also for a long-term strategy, that aims to hold some positions for ever, in many cases, it is illogical to be obliged to close all positions to be able to resize your account in order to stay within the equity limits (40 to 60K). From a subscriber perspective, they will see all the positions closed on a Friday just to be reopened on Monday.
From my perspective, C2Star long term strategy criteria could be something like this:
- Equity Start: 25k
- Equity should be lower than 75K
- Must outperform SP500 index by 1%
- Must deploy minimum amount of 1% of capital in the rolling 60 days
- Closed trades must represent minimum deployment of 1% of capital in the rolling 60 days
- Should not underperform SP500 index by more than 5%
I have applied 2 strategies for C2Star certification because I am replicating (as close as possible) 2 accounts that I am managing for family members, so it is not an extra effort for me. Letâs see if I can manage the drawdown for at least a period of time that will bring me to break even (199USD per strategy certification).
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Recently I was required to prepare this yearâs 1099 forms for strategy managers.
(For those outside the US, this is a form that companies must file with the U.S. government to snitch, er, I mean, report the income paid to people â i.e. so the government can make sure everyone is paying their taxes.)
The strategy manager who earned the most from C2 in 2020 did so by (mostly) running C2Star strategies.
So, look, obviously that is not the sole point of the C2Star program. What matters more â much more, in my opinion â is how a strategyâs investors/subscribers fare.
But I do want to point out to the strategy developers who gnash their teeth and protest about this or that aspect of the C2Star program; while you tell me how to scrap the program or do something different, there are strategy developers who are quietly earning money on the C2 platform, by running strategies that (I think) benefit subscribers (i.e. by attempting to mute volatility and gently outperform the index on a constant basis). No, itâs not easy. No, C2Star is not right for every type of strategy, or every type of strategy manager. I never suggested it is.
But, for some strategies, it is a good program.
Matthew
P.S. Since you are going to ask: $368,000 in 2020.
P.P.S. Despite all this, I really do appreciate the feedback, and suggestions. I probably wonât be making substantial changes to the C2Star program requirements in the near term, but I will revisit this in the future, and these suggestions are helpful.
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I think C2Star can work in certain market environments and or if you get a good jumpstart, but if you want to create multiple accounts to try to maximize your income you are at the mercy of C2Star as to if they will allow you to do this based on if the systems are too similar to be allowed. Am I understanding this right?
Unfortunately, there are flaws in the C2Star program which prevents top performing strategies from joining. Canât have a drawdown greater than $5k? I think you need to be holding treasuries to qualify lol.
I guess maybe wait for a market collapse then go all in long then sell most of your position and coast, not sure if that works.
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The home page shows in 2019 the top earning strategy developer made $571,000. Do you have an update for 2020?
Matthew Klein said in 2020 the top trader received 368K and he was mostly managing C2Star system(s).
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I am happy today 
My 2 strategies completed the 60 day period and received the C2Star certification. Letâs see if this brings subscribers and for how long can I keep the certification.
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Congrats! C2Star is something I might try for but my current trading methodology arenât suitable.
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I think there has to be some sort of misunderstanding on the 320K mostly through C2Star strategy. I just filtered for C2Star strategies and unless Iâm missing something itâs a small group and none of the strategies are over 1 year old. I also checked some of the autotrading for the strategies that have been around more than 2-3 months and there arenât more than a handful of autotraders. Iâm not sure where that C2Star revenue came from unless it was a strategy that shut down for some reason.
Hi @D_Financial,
The 320K is a misquote of what Matthew Klein actually wrote ($368,000 in 2020).
Good observation however there were quite a few C2Star strategies that started in early 2020 (or before) and only recently left the program (either through disqualification or for other reasons). Hope this helps.
So someone had enough followers to generate $368k in 2020 and now that strategy has just disappeared? Possible I guess.
Has anyone asked whether the $368000 for 2020 was for the total subscription generated, or is that the developerâs 50% portion? If thatâs the case, then he or she would have had to generate $736000 in annual subscriptions for 2020, which would be an average of over $61,000 monthly.
If it were mostly from C2 Star strategies, and the C2 Star strategies can only charge $125 monthly, then he or she would have had to average 490 subscribers for every month in 2020.
I donât believe that would have been possible.
I think $368K must be from the total sub fees before the 50% split. Also the leader on the C2Star list is LarryBrown and he has 3 different strategies. I donât know if he is the one who has earned the most, but whoever it is probably has multiple strategies active.
The developer split for certified C2Star strategies is 75%.
LarryBrown is only one of a couple developers that once had multiple strategies in the C2Star programâŚ
The strategies didnât disappear as they are still publicly trading on the Collective2 platformâŚthey are just no longer part of the C2Star programâŚ
Good point, but isnât the 75% split for C2Star strategies only for the time period that the strategy satisfied all of the C2Star criteria?
While a strategy is trying to get C2Star certified I believe the split is still 50/50.
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