Collective2.com is a website that allows everyone from professional money managers to “housewives in Mexico City” to publish their own trading models and publicly track the results. Moreover, these “trade leaders” can offer subscription alerts and even broker-synced automated trading services to paying subscribers, with the subscription revenue shared by the trade leader and Collective2. In this episode of Strategic Investor Radio, host Charley Wright interviews Rod Casilli, Collective2’s Head of Product.
Extensive Range of Trading Models
Charley says he could spend hours on Collective2.com, reviewing trade leaders’ strategies. The site tracks more systems, has more users, and facilitates more real-life trades than any other publically automated platform. Trade leaders’ systems can include stocks, futures, Forex, and stock options – or any combination thereof. Rod notes that trade leaders’ use of the four instruments is distributed fairly evenly.
Overall, the platform has linked over $50 million between more than 95,000 users. “You could look at these strategies all day long,” Charley says. “And not just looking at the performance, but the strategy itself, and what it is and how it works. It’s very, very interesting.”
When asked what keeps him awake at night, Rod sighs and cites regulators. “The regulatory environment can always change on you,” he says. “It would be a shame if something came along that made the business model more challenging from a regulatory standpoint.” Charley then cites the recent Department of Labor regulation as a potential “Trojan horse” for additional regulation.