Investor Protection Engine

High-Water Mark (HWM) & Fee Calculator

Understand how copy trading performance fees are billed. Discover how the High-Water Mark ensures providers are only rewarded on net new peak profits, never on recovered drawdown losses.

Embed this HWM Fee Calculator on your website

Give your strategy followers transparency on fee deductions.

$
%
Month 1 (Profit)
%
Month 2 (Loss)
%
Month 3 (Recovery)
%
Month 4 (New High)
%
How HWM Protects You in Month 3: Even though Month 3 is profitable (+8%), the account is still below the Month 1 High-Water Mark. Under strict HWM billing, $0 in performance fees are charged until the previous peak is surpassed.

HWM Fee Billing Ledger Simulated

Net Ending Capital
$12,045
+20.5% Net Return
Total Performance Fees Paid
$585
$190 saved by HWM
Period Gross Balance HWM Floor Fee Deducted
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Risk Architecture Guide

Quantitative Execution & Risk Control Principles

01

Equity Proportional Sizing

Fixed lot sizing without balancing capital disparity leads to sudden liquidation. Scale lot multipliers strictly proportional to provider equity.

02

Latency & Slippage Drag

Execution delays (50ms–500ms) and broker spread markups can erode up to 30% of a scalper's gross yield. Monitor real net yield with slippage modeling.

03

High-Water Mark (HWM) Protection

Never pay performance fees on recovered losses. Strategy managers should only earn performance splits on net new all-time highs.

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