I think I can answer #2. The score by your name includes ALL systems you have created. I think the idea is to "warn" potential subscribers to a person who creates say 10 systems, and kills the 3 or 4 bad performers and keeps only the good performing ones.
Someone please correct me if I am wrong.
I think I can answer #2. The score by your name includes ALL systems you have created. I think the idea is to "warn" potential subscribers to a person who creates say 10 systems, and kills the 3 or 4 bad performers and keeps only the good performing ones.
Someone please correct me if I am wrong.
You are correct. The C2 score is calculated with a proprietary formula that includes all your system results as inputs into the formula.
The C2 Score is a percentile ranking of all traders in the C2 Universe. (Score of 500 means you exactly in the middle of the pack.)
Implication: if a buy-and-hold investor (read: someone who issued a few trades and then sat on his portfolio for a long time) has a high C2 score, that means most active C2 traders are underperforming buy and hold investors.
That implies that more than half of C2 traders are doing worse than holding cash.
Not at all.
Imagine two systems with identical profits, Sharpe, APD and drawdown, but one has been going just 2 months, the other 2 years.
Which do you think should have a higher rating?
MK already explained this to you, it’s a percentile ranking, it’s taking into account length of time and outperformance (even by doing nothing) and the other system that is actually trading is much younger.
C2 rating? I think it is true that volatile or "extreme" positions keep this low. Here is a sampling of mine going back many, many months:
C2 Rating: 1.40, 1.56, 1.64, 1.66, 1.59, 1.07, 0.79, 0.64, 0.56, 0.60, 0.56, 0.60, 0.63. 0.59, 0.64, 0.65, 0.66, 0.64, 0.54, 0.36, 0.35, 0.32, 0.30, 0.29, 0.30, 0.32, 0.33, 0.34, 0.45, 0.56, 0.62, 0.63, 0.65, 0.80, 0.86, 0.94, 0.99, 1.03, 0.96, 0.83, 1.07, 0.86, 1.04, 1.24, 1.44, 1.17, 0.87, 0.73, 0.71, 0.76, 0.63, 0.74, 0.90, 0.75, 0.75, 0.64, 0.57, 0.64, 0.82, 1.03, 1.15, 1.34, 1.31, 1.20, 1.37, 1.48, 1.51, 1.24, 0.93, 0.90, 0.86, 1.00, 1.11, 0.87, 0.79, 0.85, 1.04, 0.96, 091, 0.73, 0.66, 0.57, 0.60, 0.72, 0.63, 0.75 0.82, 1.20, 0.95, 0.56, 0.66, 0.74, 0.80, 0.77, 0.84, 0.72, 0.68, 0.79, 0.90, 0.94, 3.46, 4.52
I almost feel human here in this cave;)
Gilbert
[LINKSYSTEM_31082140]
RE: the point is that system doing nothing has a 700+, you think it’s rational?
^^^ I think this brings up a very important point when it comes to trading / investing. When a system is “in the market” - no matter how good the system is - there is risk of loss. We can all agree to this, yes?
A system that can sustain that risk over a longer period of time to remain viable / profitable I humbly believe should in fact be rewarded for its longevity. If there is any truth to cash is king, as well as longevity to remain viable, then this is the rating that demonstrates this fact.
Contrary to what some may believe, a system can be very profitable over the long haul without having to always be in the market so to speak. A good trader knows that there are times to trade, and there are times to “sit on hands” by exercising patience.
It is good to understand that C2 takes this non action into account by objectively rewarding a system for that achieving this accomplishment in conjunction with other criteria.
my 2 cents…
The C2 Score is a percentile ranking of all traders in the C2 Universe.
A ranking based on what, please?
