A High Water Mark (HWM) is the reference profit level used to determine whether further CopyTrader App profit sharing is due. Only eligible profit above the applicable HWM is considered for additional profit sharing.
Which trading results count toward the HWM?
The eligible profit measure can include both:
- realised PnL from closed copied positions; and
- floating PnL from open copied positions at the time of settlement.
Profit sharing may therefore be payable even while copied positions remain open.
How is profit sharing calculated?
Profit sharing is calculated by applying your profit-sharing ratio to eligible profit above the HWM.
Profit sharing = Eligible profit above the HWM × Profit-sharing ratio
For illustration, assume the eligible profit measure is USD 500 and the previous HWM is USD 400:
Eligible profit = USD 500 − USD 400 = USD 100
At a 20% ratio:
USD 100 × 20% = USD 20
The illustrative profit-sharing amount is approximately USD 20. If the eligible profit measure does not exceed the HWM, there is no amount above the HWM to share for that settlement.
What happens below the High Water Mark?
If the eligible profit measure does not exceed the applicable HWM, there is no amount above that level to share for that settlement. The HWM and eligible profit measure must be assessed under the rules applicable to the copy relationship.
When does the High Water Mark change?
Your High Water Mark is maintained separately for each copy relationship:
- When you start copying: The initial High Water Mark is USD 0.
- When you deposit or withdraw: The High Water Mark does not change.
- When you stop and restart copying the same provider: A new copy relationship is created, and the High Water Mark resets to USD 0.
- Manual resets: The High Water Mark cannot be reset manually or on request.
A withdrawal does not change the HWM.
