Over the next few weeks, we’ll be changing the math that C2 uses to select strategies to appear on our Leader Board.
You can see a “sneak preview” of the new Leaderboard logic [here].(https://collective2.com/selector/beta_leaders)
What will be changed?
Some of the biggest changes will be:
- Strategies must be at least 6 months old to appear.
- Crowd popularity has been given lower value.
- Higher weight has been given to Jensen’s Alpha (traditionally called simply “Alpha”), which tries to measure risk-adjusted performance.
- More weight has been given to Monte Carlo Simulation results. Monte Carlo sims use brute-force computer analysis to evaluate alternate possible outcomes.
In summary, we’re trying to give more weight to lower volatility and risk, and more weight to longevity.
The new Leaderboard is still a work in progress. We’ll be running it alongside the “old” Leaderboard for several weeks at least, as we tinker with it.
We welcome your feedback. Please post it here.