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is not indicative of future performance or success.
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If you sell an option and let it expire, C2 will ALWAYS show that as a profitable trade, regardless of whether or not the option truly expires worthless or if it expires in the money. This can dramatically boost the Win % for strategies that are heavy option sellers. I understand the corresponding P&L is reflect in the assigned stock position, but it still drives an unrealistic Win %. This can be very misleading to potential subs, and opens up the possibility to “game” a system to look better than it really is.
Seems like C2 could make an easy fix to the way they handle this that produces more transparent and accurate results.
I agree, it´s not a problem. If someone evaluates a system solely on the win% he really has gotten something wrong. Besides that the system still hast to be profitable. If all your options expire deep ITM you will have a high win% but still loose money so everyone will see it at a glance. It´s technically correct to count every expired short option as a winner because you always win the premium no matter where the underlying stands at expiration. What the underlying does afterwards is a different matter though, but it´s tracked seperately so it´s alright.