The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss
is not indicative of future performance or success.
There is a substantial risk of loss in trading. You should therefore carefully consider
whether such trading is suitable for you in light of your financial condition. You should read,
understand, and consider the Risk Disclosure Statement that is provided by your broker
before you consider trading. Most people who trade lose money.
I apologize for not reading the thread thoroughly before posting – I see that you did address case #1.
Regarding #2, let me give you a specific example. I have been a subscriber to this strategy for several months:
His target portfolio was between $150K and $200K, and he would scale accordingly when it reached the top end, but keep the number of contracts the same. Recently, he was forced to scale down to $100K and so now the positions sizes have to be reduced. Now he is having to do some rounding. Where before he might trade 3 contracts, he now trades either 1 or 2. This doesn’t completely break the system, but it is no longer optimal.
Note that I have no affiliation with this vendor – I am simply looking at it from a subscriber viewpoint.
Before the forced rescaling, the strategy manager kept a portfolio size that was appropriate for the number of maximum contracts that the system could take on at any given time. Now that the system is scaled to the required range, the leverage is quite a bit higher. This does not affect the current subscribers – they will still make the same trades they always have. The issue is that a new subscriber with a $100K account who looks at the past track record may expect the same level of volatility going forward. I’m sure the volatility of this system will go up now that the leverage had been forced up. It happens that it helped this system this month (it made a 17% gain in one day!), but the drawdowns will likely be steeper also.
I know this is a couple months old now, but I am running into an issue with my Circadian system. I trade it with my real money account and I have a position sizing algo that I use with it. I use Tradestation with Platform Transmit, but I have no way to scale down my position sizes that get sent to C2. However, I was forced to rescale my account to take on additional subs and now I believe it’s causing confusion and my subscriber’s some issues. I did add this detail into my system description, but I don’t think that is enough for folks to understand. I emailed into the helpdesk and the largest account size I can scale to is 125k which doesn’t really help the situation. Is there anything else in the works to solve this? It would be nice if I could scale down the amount of contracts that the Platform Transmit program sends to C2.
I hope all is well. I just want to confirm which statement is accurate because the rescaling page as shown in the screenshot below seems to still reflect the old policy.
Who are you going to believe: me or your lyin’ eyes?
Well, actually, my most recent statement here, on this forum, is still accurate. The rescaling process has been modernized to rescale fees, too. So the screenshot you show is no longer accurate. I’ll need to change that.
