Performance Fees are calculated weekly. A Performance Fee is deducted in arrears based on the extent to which total aggregate profit has been achieved considering all closed and open positions, subject to a High Watermark (HWM). If you are copying multiple Signals at the same time, the copy trades of different Signals are considered “in silo” and losses made by copying one Signal do not impact the Performance Fees owed to another; the overall profitability of the Copier’s account is not relevant.
The High Watermark is based on the highest value that a client account has achieved. i.e. Performance Fees will only apply if the Copier continues to increase its profits. The watermark is reset each time the Copier increases its profits; the gain minus the Performance Fee will become the new benchmark. If a Copier suffers losses, then the watermark will remain the same and Performance Fees will apply again when they’ve recovered those losses and made a further profit.
A Copier may make a profit which exceeds the High Watermark but then suffers losses in the same reporting period which reduces their profit back below the High Watermark. Under these circumstances, Performance Fees will be rolled over to subsequent reporting window (the next week) and paid when losses are recovered.