FAQ #537

What is a variable fee for public strategies?

• What it means: a fee the subscriber pays as a percentage of the increase in their equity (P&L curve) on the strategy above the high-water mark. The high-water mark is the highest level already billed, so a recovery after a drawdown is not billed again.
• What it is measured on: Tradetron's P&L for your live deployments of the strategy, before brokerage, exchange charges and taxes. Paper trading is not included.
• When it is billed: on the cycle the strategy creator sets, for example monthly. The creator sends the invoice.
• Example: if the variable fee is 10% and your equity on the strategy rises by 10,000 above the high-water mark, the variable fee is 1,000.