As a signal provider, does the “risk constraints” feature allow me to control the trade sizes that of the subcribers’ accounts? For example, I want to trade 2 lots (Forex) so that only 2% of the subscribers’ accounts is at risk for this trade in case the market triggers the stop-loss. Should be dynamic as probably in the next trade, I change the lot size to, say, 4 lots but 2% of the subscribers’ accounts is at risk (no more) when the stop-loss is triggered. Does anyone here at Collective2 explain to me how this works, that is if this feature is available?
Is anyone going to answer this?
This feature in question is critical to the success of a trading system. Without it, even an excellent system will wipe out an account at some point.
Joel:
The thing to always keep in mind at C2 is that your only job is to manage your own C2 Model Account. You can certainly use C2’s “auto-risk control” features to do so – for example setting a constraint whereby positions will be closed automatically if they cross certain thresholds.
But people who decide to AutoTrade your system will be configuring their own preferences on top of the way you manage your Model Account. They may select to trade your system exactly as you manage your C2 Model Account (i.e. starting with exactly the same capital, and following the trades at 100% scaling), or they may start with a different amount of capital, and lever up or down the trades as they specify.
So in that context - and in the context of the way C2 AutoTrade works - your question doesn’t quite work. You can (and definitely should) manage your C2 Model Account to the best of your ability, applying whatever money management and risk controls you think wise. Your subscribers will then take your Platonic Ideal, and transform it for use in their own personal circumstances.
MK
