How is the trader account's yield calculated?
The Trader Account's yield is calculated based on the daily change in the account balance. No balance operation is included in the calculation of yield. This means that the yield data only reflect the results of the trading transactions on the Trader Account.
What does the volatility of daily yield mean?
The volatility of daily yield means a measure that reflects the extent of yield fluctuations in regard to its average value. Yield fluctuations are a risk. High fluctuations mean a high risk.
What is the risk parameter?
Risk is a normalized measure for fluctuations of daily yield over the last 14 trading days. If this value is high (5), it means that the Trader allows for high yield fluctuations, i.e. he uses aggressive trading strategies. A low value (1) indicates that the Trader's strategy is conservative.
What is a drawdown?
The current drawdown is the measure characterizing the current trading account balance (yield) in regard to its historical peak yield value. The maximum drawdown is the measure characterizing the maximum decline in yield in relation to the previous local peak, which has ever been attained in the Trader Account's historical performance.
What is the recovery factor?
The recovery factor is a characteristic of the Trader Account's results, which is calculated as the ratio of the current yield to the maximum drawdown. The recovery factor illustrates to which extent the yield exceeds the maximum drawdown depth. When comparing two Traders that have the same yield, the best one would be the one whose recovery factor is higher, because his yield has been achieved with a lesser drawdown.
What is the sharpe ratio?
The Sharpe ratio is a measure of the Trader's performance, which is calculated as the ratio of yield-to-yield volatility (fluctuations in yield). Yield fluctuations are a risk. High fluctuations have a high risk, and these should bring a high profit. When comparing two Traders that have the same yield, the best among the two is the one who has a higher Sharpe ratio, because his yield has been achieved with lower risks.
What is a trader's offer?
The offer to potential investors to link their trading accounts to the Trader Account under the commercial terms set by the Trader:
- Trader's Commission means the commission set by the Trader, according to which settlement between the Trader and Investors as well as commission will be calculated for profitable replicated trading transactions.
- Accounting Period means a period of time (since the start of collaboration between an Investor and a Trader, or since the previous settlement between an Investor and a Trader, whichever took place later) after which settlement takes place between an Investor and a Trader. Periodic settlement occurs on the last Sunday of every month.
What is a replication ratio?
Means the ratio of copying trading transactions from a Trader Account to an Investor Account, which is set by the Investor while connecting his Investor Account to a Trader Account.
The commission fee for a trading transaction is calculated based on the financial performance of respective transactions, regardless of whose control the transaction was under. The commission fee is charged against the Investor Account via a balance transaction carrying a memo: "cmsn lock for re. #Investor order ticket” and is reserved on a special retention account until the settlement procedure is carried out between the Investor and the Trader.
What is a settlement?
Means the procedure of distributing the commission accrued in the retention account between the Investor Account and Trader Account.