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Hypothetically, the best strategy in the world? ๐Ÿ˜Š

Four+ years track record here on C2 with a +76%/year avg annual return as of today.

Automated & rule-based trading of VXX and SVXY only.

No portfolio leverage used. No options used. No martingale bets.

Can be used to help round out a larger portfolio of equities, bonds, and commodities.

2 Likes

โ€œHypothetically, the best strategy in the world?โ€

Perhapsโ€ฆ but:

  1. 46.1% historical drawdown
  2. looking only at page 1 of trading record, a single position had 15.71% drawdown
  3. not TOS
3 Likes

I am trying to figure out why C2 would have your minimum recommended capital at $90,000. Looking at recent trades at least you are just buying SVXY and VXX. I would think that would lead to a much smaller minimum recommended capital. Do you know why? Do you agree or disagree with that number from them?

  1. 46.1% historical drawdown

The aspect that youโ€™re missing is that this is not a strategy designed to be an entire portfolio. It is a dynamic allocation of short and long volatility that is specifically designed to be paired with a diversified portfolio.

I could have make a strategy that is weighted with 90% S&P500 and 10% VXX Bias to generate 20%+ CAGR and much lower drawdowns but I intentionally designed this so that people have the flexibility to take on an amount of risk that is suitable to them.

  1. looking only at page 1 of trading record, a single position had 15.71% drawdown

The trade immediately before the trade with a 15.7% drawdown was a trade with a 216% gain from 2/24/20 to 4/21/20. Most trades have a stop loss at -5% but I let that one run as a market crash hedge.

  1. not TOS

My strategy is automated and uses algorithm signals sent from my server to C2 via API for execution. It is not like many strategies on C2 where the leader is placing a trade in a brokerage account and those trades are getting copied to C2 subs. C2 charges me as a trade leader to autotrade my own strategies, and sorry, but Iโ€™m not paying for that (I had ToS for the first couple years).

Regarding minimum recommended capital, I have no idea where C2 gets the numbers from.

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