There are two ways to reward the trader:
- By commission (performance fee) – the trader receives a commission based on the total profit earned by an investor through copying the trader's successful trades.
- Without commission – the trader receives nothing. This mode helps beginner traders showcase themselves and attract investors.
The calculation of the commission according to the "Performance Fee" scheme:
Delta is used to calculate the commission. The "Delta" is the difference between the investor’s current result for the entire subscription period and the current maximum result for the entire subscription period. The result of all copied transactions (both open and closed) is taken into account at the end of the investment period.
Example:
Let's say the result of the first investment period (#1) is 100. As this is the first investment period, there is no previous maximum profit. Therefore, the calculation of Delta is 100 - 0 = 100. A trader gets 10% of 100 (10), and 100 is set as the maximum investor result for the subscription period.
If the next investment period (#2) produces a result of 150, then Delta = 150 - 100 (current max. profit) = 50. The trader gets 10% of 50 (5). If the following investment period (#3) produces a result of 140, then the Delta calculation is 140 - 150 = -10. Because Delta is negative, the investor did not receive any profit during the current investment period, so there is nothing to charge commissions for.
Important: A trader, when choosing to trade without commission, may eventually change the conditions and switch to the "performance fee" commission scheme. In this case, investors subscribed to this trader will receive an email notification in advance. The subscriber will decide whether they are willing to pay the commission or unsubscribe from the trader’s strategy. The same procedure is applicable for changing the commission percentage.