Equity of Investor / Equity of Manager
Let's see an example here, if suppose an investor
invests $1,000 in the investment account and the equity of the Strategy Manager
is $1,000, the following will be the ratio calculated:
Equity of Investor / Equity of Manager
1000 / 1000 = 1
This implies that when a position of 1 lot is opened by
the Strategy Manager, the position of the investor is simultaneously opened at 1
lot. After some time if the Investor withdraws $300 when the equity of the
Strategy Manager rises to $1,500, the equity of the Investment Account will be
$1,200. The estimation of the new ratio is as follows:
Equity of Investor / Equity of Manager
1200 / 1500 = 0.8
For instance, if the Strategy Manager wishes to open a
position of 2 lots, then the position of the Investor is opened at 1.6 lots (0.8
X 2).
If an Investor opens their account when the Strategy
Manager has been in a position, then the Investor's position would be opened at
the current market price.
This is the process how Winsorfx Invest works.