defn: maximum deposit load - page 3

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Revo Trades #:

does this mean that the max deposit load, on the signals page is relative, and can decrease?

No, it will not decrease on signal page.
 
Sergey Golubev #:

It means that the signal provider deposited more money to the account, and this max deposit load is calculated based on initial deposit.

Example:

  • Signal provider started to trade with 300 dollars. He has subscribers.
  • Signal provider is losing money, and to save his account - he deposited 1000 dollars more. And his subscribers were losing oney (because they were not deposited to their accounts, and he is winning because he deposited).
  • And max deposit load is calculated based on initial 300 dollars.

sergey, if the calculated based on intial deposit so the signal's provider who make initial deposit with larger number probably will have smaller "max deposit load" than the signal's provider with small initial deposit?

and than the "max deposit load" will relate with how many lot per transaction that signal's provider do after inatial deposit?


Based your Example:

  • Signal provider started to trade with 300 dollars. He has subscribers.
  • Signal provider is losing money, and to save his account - he deposited 1000 dollars more. And his subscribers were losing oney (because they were not deposited to their accounts, and he is winning because he deposited).
  • And max deposit load is calculated based on initial 300 dollars.

------>>> the max deposit load will be greater than 100%?

 
Elisabet #:

Based your Example:

  • Signal provider started to trade with 300 dollars. He has subscribers.
  • Signal provider is losing money, and to save his account - he deposited 1000 dollars more. And his subscribers were losing oney (because they were not deposited to their accounts, and he is winning because he deposited).
  • And max deposit load is calculated based on initial 300 dollars.

------>>> the max deposit load will be greater than 100%?

The lot size for subscribers are autmatically calculated based on the balance and leverage of subscriber and balance/leverage of provider.

Besides, the rating of signal provider is calculated on some formula (non-disclosed formula) so the signal provider will lose his rating after he lost his initial deposit, and he will not be able to get new subscribers irrespective off - he deposited 1000 dollars after that or not (because the growth of his account is calculated to be based on his initial 300 dollar deposit too).

Signal providers know about it.

Example - if the signal provider lost his initial deposit so the next deposit (to save his account) will not help in this situation:

 

"Max deposit load" has nothing to do with initial deposit. If initial deposit for example was 20000.00, your margin is 10000.00 and your equity is 7407.00 "max deposit load" will be 135%.

Initial deposit is no used for max deposit load calculation. Signals may have even deposit loads at 500% or 700% or more but also close to 100% drawdown.

 

can someone else comment on this? in some threads, deposit load is margin divided by current equity, multiplied by 100;

but in this thread the information is completely different! What is it? what is definition of deposit load?

Maybe the definition on signals service has changed over the years?

It seems to me that the bloody names like deposit load should be renamed, if they don't have anything to do with the deposit! then, why is it called "Deposit Load"... it is very dumb.

 
Revo Trades #:

can someone else comment on this? in some threads, deposit load is margin divided by current equity, multiplied by 100;

but in this thread the information is completely different! What is it? what is definition of deposit load?

Maybe the definition on signals service has changed over the years?

It seems to me that the bloody names like deposit load should be renamed, if they don't have anything to do with the deposit! then, why is it called "Deposit Load"... it is very dumb.

It is not a "dumb" name. It is used to rank a trader using non margin accounts. But there is no reason not to use on margin accounts. We just have to adjust for the leverage. For example: to see what trader is safer for us to invest we can use a simple formula. Lets say we have trader A with 1:500 leverage and 11% max deposit load and trader B with 1:20 with 95% max deposit load. To compare them we have to 11% of MDL of trader A multiply by 25 and we now know who's safer, coz 500:20=25. If trader A has 1:400 leverage then 400:20=20, if 1:200 then 200:20=10 and so on.....and don't forget to use DD with MDL.

MDL is "margin divided by current equity, multiplied by 100;" it has to be. If margin divided by deposit the result will never change when equity drops.When DD goes up, MDL is going up too.

"Non margin accounts" means: no leverage used.

 

thanks for the response but I was already sure that your previous response was the one to believe (smiley).
When i made the previous post I was confused after reading 5 or 6 different threads that had as many pages in each thread, and all threads throwing out different ideas, with a few moderators, even, having conflicting responses.

Thanks for further example.

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