For those who don't know Collective2 is a platform where anyone can open an account and start trading paper money. If their trading is any good, then investors will have a real opportunity to follow them and even have their brokers mimic their trades. You can view their Leaderboard to see which traders are doing well.
I joined about 6-8 months ago and my cumulative return is 242.2%, yet they won't let me show up on their Leaderboard so that investors could consider subscribing to my strategy. I would receive the lion's share of the subscription fees.
Their reasoning:
"Inclusion on the Leaderboard is determined by your C2 Score, which is our proprietary method for ranking strategies based on various risk and return factors. Your score currently ranks #236 which is not high enough for the Leaderboard right now."
I have no idea what goes into their algorithm for ranking strategies but it seems to be a crock of schitt. Obviously it's not heavily skewed toward performance or else I'd be in the top 5 for options trading. And they will not reveal what I need to do in order to improve my C2 score so that my strategy can be found in the Leaderboard.
I am about ready to turn and run. This is my strategy: https://collective2.com/details/146093439
Your strategy is too risky for investors' appetite, that's my guess. Your strategy has a maximum 43.5% drawdown which means an investor can lose close to half of his/her money and your win ratio is less than 50% so your strategy is losing money more than half of the time. And the bulk of your winning is concentrated in this one month of December. This is a kinda of a swing-for-the-fences kind of strategy. For more than half of the time, you don't win but this one few times that you do win, you win a windfall. But during the time that you are losing, you could lose almost half of the invested capital. So after losing almost all of the invested capital, how does an investor still have money to invest to win the windfall?
This is what goes on in an investor's mind when he/she is looking at your strategy and this is probably what the algorithm takes into account when assessing a strategy's eligibility to be included on the leaderboard. So if I were you and I wanted to improve my C2 score, I would tweek the strategy a bit to lower the max drawdown and increase the chance of winning a bit. I mean think about it, if you were to invest your own money, would you invest in a strategy that only wins less than half of the time and can make you lose almost half of your money? If you would, then f the Collective2 and just trade your strategy with your own money. You would make 242% return on your invested capital, that's more than double the invested capital, who gives a s about subscription fees? You will be richer than Warren Buffett in no time.
