How to draw up a contract with an investor correctly? - page 2
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You just prescribe that the balance is counted and recorded on the last calendar day. And there are 10 days to settle with the trader. (>> I gave you an example, so everything can be discussed with the investor.)
I understand the balance and the last calendar day, in matters where the transactions are short, but how to count when the profit is hanging in the equity for several months? for example, as in the picture.
If I do not calculate the profit, then it is not fair to myself, because it turns out that the trader's share in the turnover has been circulating and he has nothing to gain.
I have not come up with a clear solution, therefore I would like to address the forum. So far, there is a half-simple solution to calculate the average of balance and equity for earnings)
I have a feeling that this is a stupid question and everyone knows it, but why can't I understand?
I understand the balance and the last calendar day, in matters where the transactions are short, but how to count when the profit hangs in the equity for several months? for example, as in the picture.
If I do not calculate the profit, then it is not fair to myself, because it turns out that the trader's share in the turnover has been circulating and he has nothing to gain.
I have not come up with a clear solution, therefore I would like to address the forum. So far, there is a half-simple solution to calculate the average of balance and equity for earnings)
I have a feeling it's a stupid question and everyone knows it, but why can't I understand?
Just specify in the contract ( example)
Calculation of funds is made on the last day ( here term. month . week.... ) from the market value of assets at the time of calculation. On the basis of the funds calculated under clause 1. whether or not the fee will be charged... (here or fixed fee). (fixed commission or %) to the principal.
Your equity is the market value of the account.
Obviously, equity is always calculated at the MARKET VALUATION OF ASSETS and not at the price at which the asset was purchased.
In the example above, you simply write out the settlement rules... and you also separately specify when the previously fixed amount is fixed.
What's wrong with that?
Your share will also give an increase.
You should pay someone to make you an agreement. (>> DON'T TAKE THAT AS AN ADVERTISEMENT FOR MY OFFER.)
For example, here is an excerpt from my old contract.
The rules and procedure for calculating the Manager's remuneration.
In case of a positive market change in the value of the assets of the Client's account for 1 month. Client is obligated to pay the Manager the reward as a percentage of the profit for the period of 1 month.
Also in the contract it is spelled out, when the trader leaves.
If the market valuation of the assets is below.... ( here funds or something else ... like percentages) from the initial funds on the client account, the present Agreement is terminated. Manager is obliged to close all operations on the account and not to do any more actions with the Client's account.
Your equity is the market value of the account.
It is clear that the amount is always determined by the MARKET VALUATION OF ASSETS and not at the price at which the asset was purchased.
In the example above, you simply write out the settlement rules... >>and also separately specify when the amount previously fixed.
It is better to pay someone to at least make you an agreement. (DO NOT TAKE THIS AS AN ADVERTISEMENT FOR MY PROPOSAL EARLIER).
Thank you very much for the example as well, it has become apparent to me that the equity calculation is justified) I am not ready for a contract, I am just formulating my terms for the client and it is important to understand the relationship.
"Ban" to the comrade then)))
Just to give you an example, I will post a passage from my old contract.
...
...
Paragraph 548: All questions and disputes which are not stipulated in this contract shall be resolved by placing heating devices on the manager's private parts.
...
Post alpari2010 with referral link deleted.
with a schedule like that, you don't need investors.
the chart is on the demo ?
it's stupid to look for suckers with money now, and i think that's the goal of the ts, times are not like that anymore....
If you do not count it, then it is not fair to yourself, because it turns out that the trader's share in the turnover, from the income of which he then has nothing, and also there is a contradiction that if you count on the balance, then how to count when equity is below the balance, and if you count on equity, then the volatility of funds is too high
There is no such thing as balance, forget about it. There is only equity. Equity up is profit, equity down is loss. All calculations are always and only on equity. Balance is only needed to cheat - either yourself or others, or often all at once.
Timbo, as usual, didn't understand shit when he was awake, but he waved his sword :)
The question was asked correctly, we need a calculation method and an agreement on profit/losses, equity is not suitable for this role.
I've made up my mind and for my calculations I take the least of the equity and balance as a reliable and realised profit.
I could, of course, make the task more difficult, but there is no need.