Is it me or stocks systems have more subscribers ? What is the reason for that ? You would think that c2 clients are looking for more aggressive growth .
For futures system, one position represents 1 subscriber. For stocks system, 1 subscriber may have several positions ( it could be more than 5 positions )because when he or she purchase big quantities, it will shows up in different prices and positions.
This applies to futures systems as well , but when you look at some stocks systems you will see that 80 times the quantity have been auto traded as a total and no i am not counting partial fills .
Futures have bigger leverage so drowdown is bigger, which people in C2 don’t like.
Stocks are the lowest common denominator. More people understand stocks than understand futures. Not everyone on C2 is a pro trader.
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I agree with you Stephen, most people are not familiar with futures and they are neither professional trader nor experience trader
I think another factor might be that futures systems have margin requirements. So trading 1 contract of S&P futures would require say $6k of margin whereas trading the ETF SPY wouldn’t attract the same issue and is probably easier in that a trader could select to buy 10 shares at a price of around 220. Much less than the margin of 1 S&P contract. Of course returns are lower on a like for like movement but you have to trade within your means!
Typically the margin for 1 contract S&P future is $ 500 and Russell is $ 1,000 . That’s what I get from infinity futures, but again, it’s really how is your relationship with your broker. That’s margin is for day trade. I use Russell because of volatility and worth it to trade. Unfortunately, there will be an issue if I apply in c2 because of delay in price n slippage. Price movement in ETF takes times compare than futures
As an average subscriber I have an understanding (after reading of different trader’s sources) that to trade futures with appropriate risk you should assign 30-50k per 1 contract. With stocks you can use say 10k and get your profits. Maybe this is also a reason, since much more people have 10k per system.
As been stated by others, not everyone here on C2 is familiar with futures and it broker of choice’s requirements, where else everyone who has a brokerage account somewhere can automatically trade stocks as he or she chooses with no special requirements. Futures, like options, requires both capital, income and trading experience requirements to be met by the customer/account holder as initiated and mandated by the brokerage firm in a question and answer survey-type format in order for the customer/account owner to be “approved” to trade futures in their account or sub account. This is a means for the brokerage firm of the customer’s choice to be able to satisfy the customer’s suitability and due diligence requirements (i.e. high risk tolerance, high income, long-term trading experience, speculative/hedging goals etc.) as mandated by the Self Regulatory Organization like FINRA.
