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.
Yes the marketing of an options hedge creating some sort of risk-less profit situation should send alarm bells ringing. We’re talking about preventing an “out of business” situation, it may still be very painful, but you get to live trade another day meanwhile much of the competition who were ignorant, or worse, chose to accept those risks, are completely destroyed.
There is no profit without risk (arb and illegal practices excepted), the question people need to be asking themselves is what are the risks they are actually taking, and what are the source(s) of alpha?
Some people are not really getting any alpha, they are just taking on tail risk and being paid for it. Some people have real alpha being generated but use too much leverage or don’t hedge off tail risk, and then they post up triple digit returns until one day the entire account goes to 0, or at least suffers such an unimaginable drawdown that no one will continue on.
marekj, but you’re saying that on C2 a 20% annual will get 0 subscribers. I’m new and trying to figure out what kind of systems subscribers hunger for here before I upgrade.
…over first 2-3 years. Please quote me correctly next time. You don’t need to ask me about hunger here. Just look around. Minimum 3 digits, And this conversation is out of subject, lets go to cut it.
I would not even look at any strategy performance % of 2017 as part of the considering which is a good strategy to follow. because this year the mkt has been 1 sided.
If any strategy that long xiv or short vix will out perform every strategy on c2. 2017 is a historical vix crushed year. If it’s not a vix strategy, then every strategy that only buys dips this yr will also out perform and with low or no drawdown. I’m subscribe to simplicity trading, just like everyone on c2. All he does is buy future after a dip, buys more if it dips the next day. But 2017 every dip had been V bounce back after 2 days. So this strategy look like a god send. But non of these strategies never been thru pull back or even a 1 week correction.
Time will tell if any of these high gain low drawdown strategy will last.
Completely agree with OSUTAI, and I will add that it is certain those strategies will not last through more volatile markets (and no, hedging won’t be the magic answer either).
It does not necessarily mean they should not be traded or followed.
It means subs (or traders in general) should have a very clear idea, in advance, about when they reduce size, or stop trading the strategy altogether. The time to do it will come, don’t wait until things go wrong to start formulate your course of action.
Ideally the developer should be able to asses degradation in performance and reduce size or stop. But everyone should take responsibility for their money.
The belief that you must trade through any drawdown isn’t suitable to the reality that every strategy (or at least, the high yielding ones) will stop working at some point in the future.
