Dear Sire,
I Have just subscribed to Trading Volatility (created by Vix Trader).
Looking at the trade record section today (11/01/2017), I see an unrealized loss of 184 KE (see open positions).
So my question is :
Is it possible to be to be acknowledged of the nivel of unrealized loss before subscribing to a system ?
Thanks for your help.
Hi, Evelyne:
We agree! It’s important that strategy performance data includes “unrealized losses” as well as losses and gains from closed trades.
I can happily report that C2 does just this: “unrealized losses” (and, conversely, unrealized profits) are included in the strategy page that non-subscribers see. Specifically, unrealized losses are included in:
The system equity chart
The monthly returns table (above the chart)
The return statistics
This is called “marking-to-market,” and is usually required by generally accepted accounting principles.^^ Otherwise, it would be possible for strategy developers to “hide” their losses by simply never closing a position! C2 always includes marked-to-market losses in the data it reports to non-subscribers.
However, just to be clear, we do not show the specific positions held to non-subscribers. Otherwise, no one would ever subscribe to a strategy.
- Matthew
^^ Interestingly, FASB has carved out an exception for banks and lending institutions, who are not required to mark-to-market their bad loans, because otherwise banks would need to have larger capital reserves and not rely on taxpayer bailouts when things go bad.
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