I believe you are talking about my strategy Tempus Fugit
You are absolutely right that IB may charge an exposure fee based on a proprietary algorithm not disclosed and subject to change.
This exposure fee depends also on the account characteristics (account size, portion allocated to strategy relative to account size).
Some other options strategies here on C2 are also subject to this exposure fee.
From what I understood from IB, volatility instruments in general are subject to the exposure fee test (but it would not be the case for options on stocks for example).
However, IB exposure fee calculation does not factor in the risk management of the strategy (stop loss for example) because IB will consider only extreme events in their stress tests, for example a large overnight move that would go through the stop loss.
There is no way for me to know in advance if a subscriber will have to pay an exposure fee or not.
From the feedback I have from subscribers, the exposure fee for my system, if applied, would cost around 1% performance per month.
To be fair, I have included this information in the system description now (will be updated in a few days after C2 compliance team review the text).
I also agree with you that C2 should make it possible to view the performance numbers with those fees included if they apply.
Regarding my strategy, I try to manage risk with stop loss and by trading really far OTM to minimize risk, usually with a strike price at 80%, 100% or more of the current price to limit the possibility of an overnight move going through the stop loss and by using proprietary quantitative models that target a probability of OTM expiration of more than 99%. But there is no risk free strategy, especially if you target more than 5% return per month.
If you look at all volatility strategies (options, ETP…) here on C2 and compare the performance and drawdowns of the past months, you will see that my strategy has performed quite well especially by managing drawdowns the last few months during some daily VIX spikes of around 50%.
But I know that there will be some higher drawdowns at some point in time, anybody that would tell you the contrary would just be a liar. You have to accept some DD if you are willing to do 5% or more per month provided that the DD will not erase all the past performance, which would be useless.
But only time will tell and my strategy is still quite young (note even 6 months) to make any assumption about this.
In my opinion, volatility investments are high risk, high reward strategies and as a CFA charterholder, I would recommend that everybody has to assess his/her own risk taking ability before considering trading any strategy.
You cannot expect high return without taking any risk.
My goal here on C2 is to provide an income strategy that will fit the need of certain subscribers that want a small part of their portfolio to be diversified in options and the current price tag of 99$ (with a free trial right now) seems fair to me.
CoreyR, I will PM you to solve this issue (can offer you a refund on your subscription) if you feel you had not received the necessary information from me.