Quote from GTS:
I do think that it is a problem that a C2 system vendor can walk away from their failed systems or just create a whole new persona and start from scratch when they blow out.
You say that a wise investor should only seek out vendors with longevity on C2 however there are very few successful long-term vendors on C2 because the good ones get betters offers outside of C2 so what you are left with is lots of new systems/vendors and a few 'mature' vendors with unremarkable systems.
How much time is enough time to judge someone's performance? Does the system called Hawk-Fx ring any bells?
The bottom line is that the vendors aren't risking anything on C2 (except possibly their reputation, if they choose to use their real name).
If their system starts to underperform many just martingale or start over-leveraging. If they luck out they look like geniuses, if they blow-out, oh well, it wasn't their money on the line so who cares. Would you want to auto-trade a system in such a situation?
C2 has a lot of promise but so far I have been pretty disappointed with the actual results and I've been on the site a long time.
GTS,
You bring up some good points that are very popular views. I believe I already addressed the issue of account blowouts and traders starting new accounts so I won't beat that dead horse.
However, your point about the good systems leaving C2 does not account for those traders who simply do not want to manage money. Investors can be a headache and many traders just want to trade. C2 makes that possible. Also, there are amateur traders out there that do not wish to make trading their life and some of them have excellent systems. Also, I can tell you from my own experience that attracting capital to start a hedge fund is very difficult. As I mentioned, my system has been posted 10 months and realistically, it will probably be years more before it ever attracts interests, if it ever does. So even though my system is a strong, consistent performer, I don't anticipate leaving C2 anytime soon.
How much time is enough time to judge someone's performance? That is for each investor to decide. But I believe that if an investor analyzes enough systems and compares them, he/she will get a feel for how long that should be.
You go on to say that "The bottom line is that the vendors aren't risking anything on C2 (except possibly their reputation, if they choose to use their real name)." Well, reputation is everything in this game and I do use my real name. Also, C2 assigns scores and those scores reflect the strength of a system and its developer. Starting anew will reset and lower those scores.
I think that your disappointment with C2 is understandable and that you are right in saying that the majority of systems on the site can lose investors some real money. Once again, I think you bring up some great points.
I would suggest looking for systems that produce a gently and steadily rising equity curve over an acceptable period of time. As a filter, this will eliminate a great many systems.
Sincerely,
Daryl
