Strategies that busted in the crash

Trading and Markets
22

WOW! Here’s another big one. It is rated the 3d best strategy on the Grid according to C2 score:

While the max DD is only 45%, the annualized return is now minus 85.2%. So it’s not bust, but one of the most profitable strategies on the board is now substantially unprofitable.

[UPDATE: I think that C2 may be listing some incorrect numbers on this strategy and others.]

Anther highly rated strategy that is not nearly bust, but now has negative overall annualized returns (w costs) is

Tempus Fugit (-47.8% annualized return, minus 64.8% this month)

23

XIV down 90% now. Its over.

24

C2 should just ban VIX trading on here, most investors don’t understand it’s it can blow up your account

25

Curious if it will blow up in C2 face… they might get sued.

26

I disagree with that. However, I think C2 should either make all developers trade on a cash basis or have very clear differentiation between strategies that operate using cash vs. leverage.

2 Likes
27

Also a curve showing max money at risk at any given time graphed along with the equity curve would be very helpful.

3 Likes
28

I don’t think its C2’s place to ban trading anything because people don’t understand it.

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29

ok not ban it, but a clear understanding that vix can wipe out your account in about 30 mins

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30

I just looked at the 26 most popular strategies ranked by 6-week popularity scores on the Grid (MON, 7:05pm). Of these 26 most popular strategies, TEN (10) have negative or zero returns (most of the strategies listed as having zero returns in fact have strongly negative annualized returns).

And 3 of the top 7 strategies ranked by C2 score now have annualized returns of worse than minus 80% a year.

31

i mean this is a black swan event, with $xiv and $svxy on the verge of termination. the sad part is most of these strategy is not TOS, all they are going to do is create a new user, a new strategy and LONG 5000 $uvxy puts this week and swing for the fences to get back to top 10 on the leader board. If vix spike higher, reset and repeat.

they got nothing to lose, pay a few bucks to start over. subs lost a lot or everything. 8-(

32

here’s another one gone bust. https://collective2.com/details/113956195

and https://collective2.com/details/110286218

33

@OSUTIA, it looks like the 2nd one listed by @TT3 is TOS. I don’t think a strategy that is TOS will be exempt from losing money. It does at least give more confidence that trader has put his own money or someone he manages’ money with the system.

34

So sad, all the subs to Mcprotrader went bankrupt today, https://collective2.com/details/107294590

35

its only 25% TOS. not saying TOS is any better than non TOS. like i said its a black swan event, no one saw it coming. there was no news, no event, no crisis around the globe. its just a snowball effect of algos and high frequency trading.

36

Actually, this is a nice pullback. We had a couple of gaps that were filled and another one very close. I think once they have been filled we should resume our trend up or just swing sideways for awhile.

1 Like
37

Too bad the pullback was this quick though…lol

38

It took pretty much 2 days to wipe out the gains for all of 2018…lol…causing some ETF’s to break…

39

I feel for all the subscribers… True there were some who knew the risks and took a chance, but many who were really not aware. Very sad for those who lost all.

40

Yes, I think there should be a need for safer strategies in C2. Unfortunately, its the riskier/high leverage strategies that seem to have the most appeal because of the higher returns.

41

Thanos! I knew you would give up and go private. On here calling other people ‘retards’ and calling yourself “the future of trading” and " I saw 2008 coming". You see this one coming? LOL
:rofl:

4 Likes