unhappy with Collective2

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.
 
Drawdown of 43% is high. At the absolute maximum you'd trade yours at half the leverage to get nearer to 20%, most would only tolerate around 15%, so your return would reflect that. I don't hate your strategy though.
C2 is likely factoring in the age of your strategy. Everyone has seen those 100-500% APR ones that blow up quickly within a year. There's a reason why strategies that are around for many years have lower returns.

Haven't visited C2 in a while but you do have a point in that many of the strategies on the leaderboard have horrendous metrics.

I think C2 factors in a lot on risk and tends to favour more strategies that have a high win ratio.
 
I think C2 factors in a lot on risk and tends to favour more strategies that have a high win ratio.

That's poor as win ratio is one of the most irrelevant factors. I'd even argue that win rate over 80% screams implosion risk.
 
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

What a strange fellow.

If you already have a good system, why bother to have your trades
posted on the Leaderboard?
Why suffer distress because of Collective2 action/inaction?

Keep your trades / strategies to yourself.
Go trade live using another broker.
Then quietly collect tons and tons and tons of profits.

There are hundreds of regulated / reputable brokers for you to choose from.
So go pick and choose.
 
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@maxinger, it's about leverage :)
With many paying subscribers (say each $150/month) this can mean a very big leverage :)

I hope the OP has done all the calculations.

He is trading options. It is already leveraged.
If he is doing well, he doesn't need supplementary income.
 
@maxinger, it's about leverage :)
With many paying subscribers (say each $150/month) this can mean a very big leverage :)
Compounding such an outsize return is a much better leverage than leverage with subscriptions, unless it is not sustainable, then Collective2 is correct.
 
@Quanto has a good point.

With that type of returns, why bother with Collective2 and get meager subscription income?
@ironchef, thx, but it seems you don't know how social media frenzy works, how influencer get paid, and how rich they get :)
With such a trading reputation he will have many paying subscribers, making him much richer than from trading... :)
 
@ironchef, thx, but it seems you don't know how social media frenzy works, how influencer get paid, and how rich they get :)
With such a trading reputation he will have many paying subscribers, making him much richer than from trading... :)
True I am too old to understand social media.

I was also wrong thinking someone with that type of returns would be happy just quietly print money?
 
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