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Strategies that busted in the crash


#62

Also avoid systems that short UVXY calls, and systems that trade futures without a stoploss.


#63

I’m very sorry to say this but at least it will flush out the bad strategies.
I don’t mean this in a bad way, but which system would be positioned short volatility into yesterday’s close? What kind of indicators were they using to justify that kind of a position? If you’re running a good volatility system you would have either been long vol (for agressive systems) or in cash (for more neutral defensive systems).

That being said, I feel for everyone that has lost money here. In the most part for the subscribers. Awful situation.


#64

For example contrarians like me. Now is a good time to get into this trade especially if you sell options.


#65


Bad if a leader like YZ changes from a solid style to high risk and you maybe even dont notice it…


#66

Re: YZ Income Fund - there was a foreshadowing of this at the end of 2014, when he experienced a 38% drawdown. Thought he’d corrected his mistakes - seems not.


#67

I’m not following it, but YZ probably didn’t do anything different. It was just really really bad for selling volatility like he does.


#68

I only read the description. And this does not read like i short the vix. Then he should better update it.


#69



#70

Look at his closed trades, it’s mostly selling volatility options. He was the first guy here doing well selling volatility from years ago. I guess the risks finally caught up to him.


#71

I just got a backtest to TCT Futures a few days ago haha. Collective won’t be around soon or come next crises the reckless way they pimp out these insane strategies to subscribers. They do interviews on these people with 0 vetting of their experience or anything. I’ve seen front page strategies, or strategies that were specifically marketed by Collective blow out whole accounts.

Also to subscribers if you aren’t doing heavy due diligence on how the strategy trades stop positions ect. you will get burned.


#72

TCT Futures had a closed trade Dec 7 of 29 contracts! That was a clue.


#73

well, it seems this thread is too old now. Even if you hit 100%+ in draw down, i believe C2 let you keep going as long as the trade survives. any of the strategy that didnt sell or margin call, they are all doing fine after today right ?


#74

Isn’t there some sort of auto-liquidation being done, if and when an account/strategy gets below the funds, either real or hypothetical, are needed to meet margin calls?


#75

i doubt it. there is a few i click on was down 80% yesterday, now they are only down 20%-35%. Because C2 doesn’t really do margin calls and force auto trade subs force liq also. Thats the main reason they dont do margin call on non-TOS accounts.

Like i said i remember we use to have a FOREX strategy been around for 4-5 years. and had three 95%+ draw down and continue to be on c2 until Brexit.


#76

I guess the lesson for everyone here, even if a system has a long track record like yz income, we need to put in our own stops. Some of these guys will hold a position until it goes to 0.


#77

Obviously, to be honest I think the strategies here have self motivated developers and care only about their own statistics.


#78

anyone knows if mcprotrader said anything? post here please.


#79

Stops are not a solution. Stops can turn a profitable system unprofitable. Stops often don’t work, e.g. don’t execute off market hours, don’t guarentee any particular execution, etc.

The real problem is usually too much leverage.


#80

After yesterday it’s really remarkable that people still are against stops.

What if there was a strategy that didn’t over leverage, was profitable, and used stops?


#81

Stops on XIV wouldn’t have worked for many people for the worst part of the drop because most of it occured after hours. Right? Of course for many it would have because a pretty big drop during rth occured before the major drop.