I understand that if you change your subscription price, it counts retroactivity to the beginning of the strategy ( Which is also strange… as some strategies here don’t charge any fee for the first year and then set a price, and it affects their return, especially if it is small size portfolio )
My question is: If, for example, I have a strategy that is 10,000$ and I charge 100$ per month if I don’t make any trades by year-end, it should show a loss of 12%.
Now, what happens if I SCALE DOWN the strategy by 50% ( an option that Coleective2 offers)? Will that show that in that year, my strategy lost 24%?? If so, can there something be done regarding that? Because that affects against the strategy leaders. If not, can the first problem be fixed?.. I don’t think it’s fair taking retroactive the subscription price.
Anyone? There is no info about this in C2 forums and the description of the scaling page itself doesn’t provide much information.
I want to rescale but I don’t want it to hurt the strategy performance.
Unless it was recently updated the current subscription price is applied to performance for the entire history of the strategy. If you scale so that your starting funds are half what they were the subscription fee will be twice as expensive in percentage of the strategy for each day.
Thanks for the replay,
Doesn’t make any sense, especially when you have a small portfolio.
Is there something can be done regarding that? on a 10K portfolio subscription of 100$ is 12% and scaling it down by half will be 24% those are crazy returns…
I think the only way to have it not be a problem is to start a strategy with enough capital that the subscription fee isn’t a ridiculous percentage and avoid rescaling.
Agree, but if you trade 1 future contract and do not increase your position size , the returns might look ridiculous… in that case the rescaling seems the only option.
Also, because you have position limits not always you can increase the position size ( when trading Futures, I don’t think there is a problem with stocks or Forex)
Personally, I would consider trading 2 at some point, but I can understand why you wouldn’t want to.
I am not happy with this solution too. When you are up 10k% and then have to scale it back down you will have a 100% drawdown. And this sucks.
But on the other hand I want more people to allow to trade my strategy.
To scale or not to scale is a tough desicion.
But on the other side scaling down can be good for your rank. My rank improved after i scaled down 65%.
Good thing that is was in your favor in that case, but it can go against you in the future.
I think it can be solved quite easy if you write a code that will also scale the subscription and also lock it.
I know there are few strategies here that scale down every time they reach to a certain portfolio size, and scaling down affects the returns, and people can’t know that.