FAQ #35

How is the variable fee calculated?

If your strategy charges a variable fee, it is calculated as follows when you create an invoice from My Subscribers > Invoicing.

Fees are only calculated on Live deployments (Offline, One Click or Auto), not on Paper Trading. You can see each subscriber's deployments from My Strategies > Manage Deployments on the strategy card.

On the billing date (monthly, quarterly and so on), Tradetron works out how much the subscriber's equity (P&L curve) on your strategy has risen above its high-water mark, and applies your variable fee % to that increase. The equity is Tradetron's P&L for those deployments, before brokerage, exchange charges and taxes. The amount shows on the Invoicing page, and you can adjust it before you send the invoice. Once invoiced, that level becomes the new high-water mark.

Example: the equity rises by 100 above the high-water mark and your variable fee is 20%, so the fee is 20 and the high-water mark moves up by 100. If the equity then rises by another 50, the next fee is charged on that 50 only.

From the fees you collect, Tradetron's share is debited from your account according to your subscription type.