This morning I woke up to an email from collective2 talking about their strategy of the week. Though I respect Collective2.com’s decision to promote any strategy they want, I see some risks with this particular strategy that concern me. As of right now the total returns for this strategy have been fantastic, but I have some reasons that make me doubt it will be a good long term strategy. Of course, I could be wrong and I hope the leader does very well. However, I think if they stick to this style it could prove problematic.
Update On 7/21/2022
In less than two weeks following my words of caution, this strategy saw a 62% drawdown. Collective2 is a fantastic website, but you should never subscribe to a strategy simply because it is the strategy of the week.
