I am interested in listing my trading system but need to qualify some points.
1. Do I assume that each trader is trading a 100k account and if so do I need to allocate/state how much they should buy of a particular stock EG ( 5 x 20k for 5 trades) or do I simply state when to buy and sell.
Thanks
Terry
Adelaide, Australia
You assume that you trade an account of $100K and specify per trade how much shares (or other units) should be bought or sold in that account. When you make profits or losses, your account size changes and you will be able to buy more or less shares.
Subscribers who autotrade your system will get signals where the number of shares is adapted to their account. If he specifies that his account is 10% of the account of your system then each signal that he receives will be 10% of the signal that you send. Subscribers who trader your system manually receive an e-mail with exactly your recommendation. They have to make the adaptations themselves.
So you don’t need to adapt the trade signals to the subscribers account. Normally you will not know how much money the subscriber uses. It can be $1K, $10K, $100K, $1M, and anything else.
However, the Realism Factor (RF) score that you get will be based on the volume that you trade with an account of $100K. If you trade illiquid stocks, you will be punished by a lower RF. This means that a subscriber with the same volume as you would have difficulties to get the same fills as your system gets on C2. One subscriber with 10K might not have those problems, but if there are 10 of such subscribers they may all have that problem (at least, that is the theory).
Julie
Thank you so much. This has made it all very clear to me.
Kind Regards,
Terry Loveday
