How to draw up a contract with an investor correctly? - page 5

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From the fact that equity is not profit. Who ever told you that equity is profit? Has anyone ever guaranteed you a profit on an open order? I mean MT.
 

Where did I say that equity was a profit?

Can you answer the question? To the first, "Why?"

 
I answered. Put the question another way if that answer doesn't bother you.
 

OK


gip:
Since equity is not profit.

Again.

alexx_v:

If at the end of the month equity is higher than at the beginning of the month, there is something to share with the investor. If it is lower, there is nothing to share. Until the equity is higher than at the end of the month, when there was something to split, there will be nothing to split.

End-of-month equity - equity at the beginning of the month = profit/loss.

What's not clear here?

 
This is your position. My position is that as long as the order in the MT concept is not closed, there is no full profit on the order. Profit can be counted on an order, but notionally with the risks associated with that order. This is for MT and RDC. We do not have to prove anything to each other, do we? So you have this opinion, I have a different opinion, you called me a clinic, I demoted you to the rank and file. That's it. Everybody out.
 

You guys are tight, after all. Here's a picture of the blend strategy given earlier in this thread (it's not my picture):


You can see the equity spikes on it. There is no reason to make a profit when equity spikes upwards. The spikes are short-lived and do not reflect the value of assets. Taking this particular strategy into account, profit would be better to be calculated as the arithmetic mean of the deposit and equity (as he wrote). For my strategy, I calculate as I wrote earlier, since my equity and balance curves are balanced.
By the way, I have a comment on the strategy, there is a lack of profit taking at equity peaks, there is an opportunity to improve the strategy in this direction.

 

Nice picture. It looks like there are far more losing trades than profitable ones.

Probably best to close all positions at the time of summing up and calculating - unless it's some long term.

 

Closing positions is not always convenient. Somewhere the commission, in some strategies the order itself carries the information. Although of course closing a position sums it up.

Still, it seems to me that it is better to determine some weighted evaluation of open positions. Taking into account the strategy, pullbacks from the equity peak and risk of unsystematic profit/losses.

Roughly speaking, a percentage of open positions would be fine.

 
..or fix the equity value at an agreed time with the investor )) and not interfere with orders, strategies, etc.
 
And hit peak equity, give away a big profit to an investor, and then suck the paw of no capital. A very good approach.
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