- The Company creates a Portfolio of Managers that meet the set requirements.
- Each manager holds a certain percentage of the Portfolio according to which funds are allocated.
- Trades are copied on the basis of the Portfolio's equity, the share of the Managed account in it and the open volume of the manager's trades.
- Investors monitor the results of the Portfolio and make a decision on the investment of funds.
- If the trading of a manager(s) included in the Portfolio is positive, the distribution of income to investors takes place.
- A manager whose managed account is a part of the Portfolio receives remuneration based on the results of his trading, regardless of the trading results of other managers included in the Portfolio.
Example: The Portfolio consists of 5 Managed Accounts. Each Managed Account has 10,000 USD. The share of each managed account is 20%. The Portfolio has 100,000 USD invested in it, which means that each manager has 20,000 USD in the beginning. One of the managers has opened a deal of 1 lot, which will be copied to the Portfolio in the volume of 2 lots. Then the manager incurred a loss of 50% on his account, therefore, the Portfolio will suffer a loss of 10%. As a result, the Portfolio's equity will amount to 90 000 USD. When the second manager opens a deal with the volume of 1 lot, it will be copied to the Portfolio in the volume of 1.8 lots, because now each manager has 18 000 USD (1 * (18 000 / 10 000) = 1.8).