New Strategy Manager- need help understanding ROI

C2
1

Hi, I am new to C2, but with 28 years outside C2. I have been taking help of Google Gemini Pro version to avoid first timer mistakes in C2. Following is the summary of our discussion, Just wanted to check here, if that is correct assessment and correct action to do:

1. The Root Cause: “Model Size Mismatch”

The Issue: Your Collective2 (C2) Model Account is currently set to the default $100,000, but your actual trading capital is ~$25,000

The Consequences (If not fixed):

  1. Diluted Returns: A $2,500 profit in your real account is a 10% gain. But C2 reports it as a 2.5% gain (because $2.5k is only 2.5% of $100k). This makes your performance look weak.

  2. Incorrect Leverage: If you trade your full $25k account, C2 thinks you are trading $25k inside a small $15k model. It will flag you for “High Risk / 500% Leverage” and scare away subscribers.

2. The Solution: “Rescale & Mirror”

Step A: The Initial Fix (Rescale)

  • Goal: Sync the C2 Model Size to your actual Bank Balance.

  • Method:

    1. Close all open positions (Go 100% Cash). Required by C2 software.

    2. Use the “Rescale Strategy” tool to change the Model Size to $25,000

    3. Re-enter positions.

  • Result: A 10% gain in real life will now show as a 10% gain on C2.

Step B: The Ongoing Maintenance (Mirror Deposits)

  • Goal: Keep the “Leverage” stat accurate when you add new money.

  • Method: Since C2 does not see your bank deposits, you must manually log in and click “Deposit Funds” (virtual cash) whenever you transfer real money to your brokerage.

  • Result: Prevents false “Margin Warnings” when you trade with your new capital.

2

That reads like a ‘Trader Option’ response. For strategy managers the trade size you send is what C2 will BUY/SELL. Traders can have options with their copied trades scaled to the SM trades.

3

If my model size is 100k, but I buy 25k of stocks, and earn profit of 2.5k. Would C2 calculate return of 10% (on 25k) or 2.5% (on 100k)

4

If your C2 starting capital is $100k and your system earns $2.5 K then your return is 2.5% at that moment.

5

But, I would never have capital of 100k. So, I should close all my positions, and then rescale it 25K to reflect correct ROI.

Also, is that right that I have to manually feed the cash in and out on C2, for accurate margin calculations…

6

Your C2 starting capital has nothing to do with your own personal trading capital.

7

Sorry, I don’t understand how does C2 calculate margin used then, if it never calculates how much capital I have..

8

As far as C2 is concerned, your starting capital is the capital you select when you create your C2 system. ($5 000, $10 000, $25 000, etc.…).

This C2 capital has absolutely nothing to do with the actual capital you are trading with (assuming you are trading your C2 system with real money).