Collective2 - Rate a Trading System

[TraderPro]

Here's a website where trader's actually sell their "hot tips"... using their "systems"

We track over 1,200 trading systems for stocks, options, futures, and forex.

It's interesting to see how some systems are highly speculative, having massive drawdowns and profits while others are more consistent.
http://www.collective2.com/

It's also interesting to note the price at which some of there traders are selling their system subscriptions...

 

[blbarclay]

Does anyone have any experience with the abovementioned website?

At the risk of sounding cynical, if it sounds too good to be true, it usually is. Returns of 300% +?

 

[Temjin]

Does anyone have any experience with the abovementioned website?

At the risk of sounding cynical, if it sounds too good to be true, it usually is. Returns of 300% +?

It's probably one of the few, or the ONLY website out there that has a "business model" like that. Allowing traders to advertise and sell their trading systems and even allow automated trading on the signals generated by those systems.

In theory, why would anyone sell you a positive expectancy trading system anyway if he/she could trade it for even more profit through compounding?

In practice though, some people may have developed several systems but only keep the "good" ones themselves and sell the less performing one for a no-risk profit. I know someone who really knows the stuff and has published books on trading system and fully understand the concept of position sizing and also has a system posted on collective2.

Look at it this way, the trading systems on Collective2 can be compared to managed futures / hedge funds but instead of being managed by professionals who have attained their CFP/CFA or CTA, they are mostly managed by private traders / amateurs who aren't really committed in the business.

The real "professional" trading programs are found among various managed futures out there through registered CTA brokers. Most of them would have very high minimum opening balance for individual accounts and may be in business for several years with hundred of million of dollars under management.

Of course, one still need to learn how to evaluate these trading systems properly in order to "invest" in them.

 

[RazzaDazzla]

So Collective2 is still around. I know of another what I believe similar service - FundSeeder.com

HAs anyone taken the plunge with Collective2 and given it a go? The practicalities seem pretty good. subscribe to a portfolio, connect it to your IB account, and enjoy (mourn) the results.

As someone said, you need to be educated when picking your portfolio's to subscribe too. I would imagine a lot of strategies are highly optimised and would perform very well for a limited period of time.

 

[lftrader]

Does anyone know for how long on the average the sharpe ratio of the best systems stays positive?