Collective2 rates every trading advisor in its database and assigns a score between 100 and 1000.
In general, a rating above 500 is good. A rating above 700 is excellent.
Collective2 Ratings are recalculated daily based on the entire performance history in our database. The exact formula we use is proprietary, but there are several key variables that go into the Collective2 Rating.
One of the most important factors is the length of time we have been able to observe the performance of the trader.
Another key factor is the amount by which the trader over-performs or under-performs the S&P 500 index.
Finally, the choppiness of the trader's results is taken into account. Certainly a more consistent trader will be rated more highly than a trader with erratic results.
The system actually has two sides. It provides nice small returns on a study basis. However, if you look deeper, this is mostly based on allowing several magnitudes higher intermediate drawdowns, as the system does not handle any kind of stop-loss - and perhaps reenter later at a more favorable price.
So, the question is: are small returns the high drawdowns worth.. you may risk all this.. - everyone has to answer this for one-self. But if you trade it: trade it only very small leverage..
Rebuttal, posted on Feb 28, 2010 by system developer:
Even though this true about an unfortunate instance and can be appreciated of PipAlert. Persons should bear two things in mind: 1. Remember that in trading its number of times a system wins to loses that is important. Eg. lets say that PipAlert lost 34% but wins 76% thats sounds very,very good every smart investor. 2. one has to always exercise good money management rule and determining the pip size/leverage to trade at all times determining stops and take profits in other to survive in the market.
System Description
Welcome to Pipalert.
A dynamic trading system ideal for any trading account size.
Day trading may get up to 5 trades in a day
- This system description was provided by the system developer. Collective2 has not verified it.
This is a pay-for-performance system. You will be charged $60 per trade - but only if a trade is closed at a profit.
Please note that, to determine profitability, we do not look at your brokerage account, nor do
we take into consideration whether you made the trades recommended here, nor the trade prices you received. We simply measure the system's hypothetical opening and closing prices
here on C2, without factoring in fees or commissions. You will not be charged unless a trade is profitable.
