Anybody here making extra cash from subscribers on collective2? What are the pros and cons? This guy is pretty legit, looking at the stats. And he trades his own account. But I doubt he has even 1 person paying him $1,500 per month. https://collective2.com/details/122760581 It seems to me that the big money would be from using a directional strategy with market orders. You do the trade first in your own actual live account, then collective2 sends out the signal 100 milliseconds later to your subscribers and they then send out a bunch of market orders for the next couple seconds, in the process moving the price in your favor, possibly massively depending on the number of subscribers and the number of stops triggered. A feedback loop would be created, the more subscribers, the bigger the directional move the orders would cause, which would increase the profitability of the strategy, which would then attract more subscribers. And no, it's not illegal. You have a 1st Amendment freedom of speech right to publish your trades.
In theory maybe, but I think you are vastly underestimating the kind of capital that would take. Obviously depends on the market, but you would have to a LOT of money following your picks to move the price in any kind of substantial way.
I opened a C2 account on a bet. I had the second highest grossing system during the three years I'd been active. IIRC I made $28K gross. The top system was an index futures offering that earned something close to $25K per year.
Strategy could possibly be customized to trade during times of low liquidity. The only thing that market makers hate is large market orders that come out of the blue. They don't know if you're an informed trader or bluffing to make it seem like you're an informed trader. No way to know for sure, so if you move the price massively enough, they have no option but to get out and get out quick. Adverse selection is a bitch. You gotta remember that market makers lobbied to make flipping illegal (it's still legal if you trade equities). They changed the name to "spoofing" to make it sound sinister.
From what I've seen, the majority of subscribers at C2 have a gambler's mentality where they chase the hot systems that have made mega returns. Then the mega drawdown happens and they all exit at the bottom. Quite the comedy show. There's not much of a subscriber base there for decent systems making consistent but modest returns over the long term. And because C2 now takes 50% of the fees, there has been a tendency for managers to jack up their fees extra high, and then trade extra aggressively to overcome those high fees.
again... there is no free lunch... C2 is just a collection of random systems, some of them have hit a random patch of profitability.
My main beef with C2 is that they're expensive, i.e. could and should be priced way lower. I also think they will eventually have to due to competition. Also there is quite a lot of "chance to have huge return at chance of blow up" systems on there as mentioned already.
I think at C2 right now nobody is making good money. Trade leaders just got an increased fee, as a subscriber it is very hard to find worthy systems and C2 has just raised the fees, so they weren't happy with their profits either.