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Using the automated trading services of Collective2, you can take advantage of PMKing Trading's proprietary trading system evaluation criteria
without having to qualify as a hedge fund client.
This means there is no minimum investment requirement, lockup period, or minimum net worth requirement.
You pay a simple monthly subscription fee to the system vendors on Collective2 for the trading systems we believe are the
"best" based on our proprietary evaluation criteria.
This gives you the flexibility to invest as much or as little as you like in the vendor's trading signals,
and caps the subscription fees you will pay. You can arrange to have all of the trading automated (using TradeBullet), or receive instant message and/or email trade signals in real-time, and decide manually whether you will take
the trade or not. You are in control of when and how you use the trading signals.
Please visit Collective2 for more details, or to subscribe to a trading system.
The main criteria we use to evaluate Collective2 systems include:
System age
System profit and Loss
Number of trades
Average trade duration
Winning percentage
Winner size:loser size ratio
Annual return
Maximum drawdown
Return:Drawdown ratio
Last trade date
System evaluation is performed weekly.
View the All Systems Go user guide here.
System Evaluation Notes
Systems are first evaluated using a list of criteria that eliminates systems that are not worth analyzing.
Criteria used in this stage include:
- System must be at least 1 year old.
- System must be profitable (duh)
- System must have at least 50 closed trades
Next, systems are ranked based on various performance metrics including:
- Winning percentage must be less than 60% (avoids curve-fit systems that have lots of small winners and are simply lucky
to have avoided their big losers thus far)
- Average size of winners must be greater than average size of losers
- Annual return must be more than 10%
- Maximum drawdown must be less than 50%
- Drawdown to return ratio must be less than 1.5
- System must have traded within last 100 days
Lastly, the remaining systems are rated based on factors such as winning size and percentage, losing size and percentage,
and trade frequency.
As you can see from the above results, even though there are more than 5000 systems on Collective2, only a few of them are
worth investigating further in our opinion!
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Automated Trading Using Collective2