high-water mark working?

Created at 03 May 2021, 11:34
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DAXimum

Joined 01.05.2021

high-water mark working?
03 May 2021, 11:34


Hello,

How does the high-water mark work?

  • What happens if a follower of a strategy stops following a strategy due to losses in that strategy but restarts following the same strategy later in a few weeks / months? What happens to the high-water mark here?
  • Some strategy providers have many followers but restart their strategy completely new after a failure or total losses. They sometimes come back with the same name and/or same strategy name. In this case, does the high-water mark disappear / reset for them and the followers? That would be a bit unfair for followers if they were able to return each time with a new strategy without the high-water mark.

Kind regards,

TradingOne


@DAXimum
Replies

PanagiotisCharalampous
04 May 2021, 09:10

Hi TradingOne

  • What happens if a follower of a strategy stops following a strategy due to losses in that strategy but restarts following the same strategy later in a few weeks / months? What happens to the high-water mark here?

For strategies that are stopped restarted, the previous watermark is preserved

  • Some strategy providers have many followers but restart their strategy completely new after a failure or total losses. They sometimes come back with the same name and/or same strategy name. In this case, does the high-water mark disappear / reset for them and the followers? That would be a bit unfair for followers if they were able to return each time with a new strategy without the high-water mark.

If it is a new strategy, then there is a new high watermark as well. There is nothing relating the old strategy and the new one.

Best Regards,

Panagiotis 

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@PanagiotisCharalampous