Tuesday, July 5, 2011

Side effects of no subscribers on C2

We started to trade with real money a week ago. Our profit margin is really small and it is easy to be eaten by bid-ask spread. Since any C2 subscriber can trade as much as s/he wants without any regard for one's actual long term profit, and because they could share the signals with friends, we removed all subscribers. We will sell our strategy (if ever) to only one subscriber, that is the only way we can ensure long term success.

And we found what is the most important thing for a great C2 score: as soon as we removed subscribers, our score went form 900's to 300's. So C2's score can be manipulated in this way: get a 'friend' to subscribe, with a very low price ($5/quarter), and 90 free days (your credit card won't be charged for 90days) and see how your score jumps.

0 subscribers has other side effects on your system, C2 does not execute your trades in time, we started to see again huge delays in execution, and we lost time pinging C2 to fix them (we don't even bother pinging them for delays longer than 5 minutes anyway). C2 is not suitable for daytrading, at least when you don't have subscribers because even 1 minute delays can make a huge difference.

We witnesses differences of $20 per day between real daytrading on IB, and what C2's reports. And I mean IB is actual better than what C2 reports. Our sample is small, but consistent every day.

The last side effect of not having subscribers, is that C2 is slow even for updating the system description, which is still pending for more than a week.

Lack of mobile app is another issue, it is a pain to update manually C2 on your phone, so a couple of times we have not updated C2 signals in time, and while we did had good results on IB, C2's signals were not updated in time and we lost in stats.

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