PropTrader, Can you give a link or someone from C2 can confirm that C2 limit order buy at bid will be filled once there is print of T&S at exchange?
If this is the case, it would be too easy to make false performance at C2.
As a system developer go to your system page then go to edit your strategy then read the last paragraph in the page .
Ok, I see.
So I agree with Elemental that the developer of MCProTrader took advantage of C2ās feature to show subscribers incorrect statistics on his strategy.
His first 4 months performance was significantly magnified to show subscribers a much better picture than his real performance.
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Of course the trick only works without autotraders because otherwise C2 would take the average filled price of subscribers as the price incorporated into calculating performance statistics for the strategy rather than the fill price (which can be rigged by inputting a buy at the ask or sell at the bid for 1 unit in a low volume market).
This is a gaping hole that C2 should fix by removing the fake performance from ProTraderās history. Let his ārealā strategy stand on its merits.
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The way to close permanently this hole would be consider the fills on limit orders (when subscribers are not present), only after the price has penetrated the limit order price.
BTW, The scary part of the story are not those systems using this trick systematically since are easily detectable, but those that are using the trick occasionally to boost (occasionally) their performance. A single trade using this trick in an illiquid market such as rough rice to name one, would easily mean a couple of thousand fantasy dollars.
The only reason that I could think C2 has not implement it yet is that this rule would pose an end to all the scalping and (many) intraday strategies which would mean a related notable decrement of developers and related paid fee.
Hopefully C2 that now is finally aware of the hole, will decide to address this fake representation of the reality and protect the funds of their beloved investors ā¦
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Agree with the last comment , this applies to all strategies site wide no exceptions , nearly all systems did use limit orders as an entry and or exit , whether it was used intentionally or unintentionally a limit order may gave a tick advantage .
I have been looking into this system and read this thread. However, Iād like to hear from some of the people who follow this strategy. Has it been profitable? What are some of the advantages/disadvantages youāve experienced?
I followed this strategy and it performed well while I was autotrading. The trader obviously knows what he is doing.
But knowing what you are doing is one thing. It still isnāt going to stop your broker calling when the naked short vix option positions youāve built are deep in the money.
Look at the strategy āConservProfitā: during the first 6 months of the strategy, people who follow this strategy also said it did well.
Yes, it did well until the trouble came. The trouble will come because that strategy made high winning rate by adding losing positions.
MCProTraderās problem are:
- The developer had been dishonest to subscribers.
- The inherent risk of the strategy is much higher than ConservProfit.
It doesnāt have big drawdown because the market never had a correction since his strategy began.
There are quite a few VIX strategies that has performed well since post election market rally, with good returns and low drawdown, because market did not have big correction during this period. That doesnāt means they can always perform well in the future when big down days come.
Of all VIX strategies,selling UVXY puts is the most risky one.
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You have no idea #2 is true. Same can be said about ConservProfit. Developer is willing to take 600-800 pip drawdown. In other words he trades without stops. Howās this less risky?
The developer of ConservProfit suggests that he is willing to tolerate a max drawdown of 600-800 pips however that is not the whole story. The system that is performing the actual trades is willing to tolerate a much greater drawdown and will move the stops as new positions are opened.
It seems that the developer will step in an try to manage a losing trade but whether he is successful or not is totally unpredictable. If he has just told people in the description that the strategy was a grid trading EA then people could assess their risk upfront knowing the characteristics of such a system.
MCProTrader is a different story. The guy has a good system for option writing. But he is still writing options. No matter how good you are as a trader, writing naked puts on vol products will eventually take you to the cleaners.
Willing to tolerate drawdowns greater than 600-800 pips? On avg winners of 20-30 pips? Howās that not ātaking you to cleanersā? lol.
This is why his strategy is not TOS. Anyone can click a button on a paper account to sell high IV options and watch the winners rack up and profits go up over time. And when markets crash, it will only be a number on a screen that changes for the developer. His subs will lose all the profits and more.
BTW, ConservProfitās method of doubling down on losing trades is equivalent to the rising delta/gamma of short selling naked options. Just like with option selling, you can lose more than your entire account with leveraged Forex systems. Imagine being leveraged into GBP/USD when it underwent a flash crash last year (unrelated to Brexit) over night. Wake up the next morning and your account is wiped because the stop didnāt work properly (lack of liquidity and velocity of move). No reason for the move either; just bad luck. The equivalent of walking down the street and a piano falling on you.
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After 4th Feabd Marnier deep drinkā¦
Today my subscription to MCProTrade expired. Why? I just follow my rules
- subscription was āexcuseā, my rule is 100% TOS and Iām adjusting my subscription to mu rules
- rule 1 is not fulfill and I will not elaborate more here
From my perspective, Micheal Chang. manager pf MCProTrader did everything OK. He took advantage of C2 loophole of limit orders without subscribers. He did acknowledge that in the letters to subscribers. He did state his performance goal as 100% annual. 8% per month. He is on track with his goal with subscribers. I do not have any more data too judge him and I wish him success,the same like R Options (Michael make it 100% TOS and I will be back).
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This system is best avoided. Heās taking on an astonishing amount of risk writing naked VIX calls and not even trading it with his own account. Might work for some time until the subscribers get completely wiped out from a moderate move in the market.
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Thank you for your informative email.
Regarding MCProtrader, one of his deceptive practices was that before he
had auto traders he set up his system so he could buy on the bid and sell
on the ask in addition to the typical con-man info he sent to his
subscribers.
Regarding the system you suggest it certainly looks interesting and I will
keep it in mind, I wonder if Interactive Brokers will regard it as
sufficiently hedged so as not to regard it as too risky and slap daily
exposure fees on it - that would scare off many subscribers.
I probably will first try your #3 SHEDGED QQQ25K nIRA system.
Thanks again,
Karl
Oops, that was not an email from the developer to me but just a post on the forum automatically forwarded to me by email.
So C2 has to show in the trading results also the order type, Limit or Market. Then the subscriber will know that when he see Limit orders in a strategy, the performance in his account probably will not be the same as in C2ā¦
