System's Return Calculation Now to Include Subscriber's Fee for EVERY MONTH going Forward?

I am not sure if anyone else noticed this (or if it might just be a temporary technical glitch of some kind)…but it looks like on selected system this morning, you will see that the 'RETURN" value have went down a bit. From what I can it see, it appears that Collective2 is now trying to implement the INDIVIDUAL monthly subscriber fee for every month going forward into the system’s performance, as opposed to just applying the initial/first month fee that a subscriber would pay.

Matthew Klein, please correct me if I am wrong on this, but if that is indeed the case then it would certainly be more reflective of a system’s performance from a subscriber’s perspective (since an ongoing subscriber to a system has to obviously pay the subscriber fee every month and not just on his or her initial month). This will definitely be a stab in the right direction (at least for potential investors), as it should force more system developers to be cognizant of the system’s performance from a subscriber’s point of view, knowing that each month the system is essentially “in the hole” until it at least has covered the subscriber’s fee for that month.

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Interesting…I believe I’ve read somewhere that the fee is included every month against the performance.

This becomes a much bigger factor if the developer rescales his/her system. (Lower account value, yet, same fee!)

Each month, subscriber fees are included in the return calculations. Nothing has changed. Every 30 days, the subscriber fee is “taken out” of the monthly returns (and the equity chart).

Matthew, thank you for your response. Can you clarify a few things for me though, as follows:

1.) When is the “30 Day Anniversary” for each system as to when the monthly subscriber fee is implemented and subtracted from the system’s performance? It looks not to be at the end of the month and that particular date is different for each system, correct?

2.) Is the monthly subscriber fee reflected in only in the system’s overall performance numbers and the equity chart, but not in the individual monthly performance numbers? I noticed several system’s today where the monthly’s returns stayed in intact, as well as the sum of the monthly returns not adding up to the “cumulative annual returns” (e.g. a system with only 2 months having a 4.3% +4.1% returns for August and September but a cumulative annual return of 7.8%).

3.) If the monthly subscriber fee is indeed part of and subtracted from the monthly return then how is possible then that a “dormant” system ( while still charging a monthly fee to a potential subscriber regardless of any trading activity) that has NO OPEN “carryover” trade to the next month only displays “-” for that particularly month of “dormancy”? Shouldn’t that system automatically be in the “negative” for the month, with the ZERO monthly return minus the potential subscriber fee?

  1. Each system is on a rolling 30-day cycle.
  2. Subscription fees are indeed included in the monthly return table.
  3. I am unable to comment on your third question without knowing the specifics of what you are looking at.

Ok, Matt, thank you for your answers. I guess some of the info I saw this morning on some particular accounts might have been a bit “delayed” and in the process of being updated (e.g. sum of monthly calculations to reflect those numbers in the equity charts and overall performance). That third question may have been related to that as well (the delayed in the monthly numbers not being updated yet to be in sync with the overall performance). Thanks again for your input and have a great day.