- TeleTrade Invest
What is the TeleTrade Invest project?
TeleTrade Invest is a service that provides proportional copying of trading transactions from a Trader Account to linked Investor Accounts. If during the accounting period the accumulated result of transactions copied to an Investor Account is positive, then the Trader gets a commission reward set on the profit.
How are trades copied from a Trader Account?
Trading transactions are copied to an Investor Account, starting with a new trading transaction executed by a Trader Account.
Pending orders are not copied to an Investor Account. Copying of trading transactions executed in the Trader Account via pending orders is carried out at the moment the respective orders are activated.
The volume of a trading transaction copied by a Trader is calculated based on the ratio of the Investor's funds to the Trader's funds:
Volume of Investor's transaction = Ratio х Investor's fundsTrader's funds x Volume of Trader's transaction
The funds include the account balance, unrealized result on open positions, and credits if these are provided by the company.
Can an Investor control trades that were copied from a Trader Account?
Yes, s/he can. If an Investor has changed any parameter (StopLoss, TakeProfit) of an open trade or has partly closed an open position, this trade is now to be managed by the Investor.
A trade that is now to be managed by the Investor means that closing of this trade will not be carried out when a respective trading transaction is executed on the Trader Account, and the Investor is now required to monitor this trade and close it by himself.
Why is a commission fee charged for every profitable transaction copied to the Investor Account?
For every profitable transaction copied to the Investor Account, a commission fee is charged in the amount set by a respective Trader, carrying a comment as follows: "cmsn lock." This commission fee is charged from the Investor Account and is reserved on a special retention account. The funds accrued in the retention account are distributed between the Investor and Trader during the settlement procedure.
What is a retention account?
Retention Account is a special account in which commission is accrued on profitable trades copied to an Investor Account. The accumulated commission is distributed between an Investor and Trader while carrying out the settlement procedure. A retention account is meant to protect the Investor's and Trader's interests as the Investor is not able to withdraw the funds payable to the Trader, and the Trader is not able to receive a bigger commission reward than the reward the Trader is entitled to based on the total performance results over an accounting period.
How is the settlement procedure between an Investor and Trader carried out?
Settlement between an Investor and Trader is carried out in the set period provided that there are no open replicated positions on the Investor Account.
The Trader's reward is a part of the profit accrued from the copied trades on the Investor's Account. It is charged from the retention account and credited to the Trader's trading account, carrying a comment as follows: "cmsn from." The rest of the funds in the retention account are returned to the Investor Account, carrying a comment as follows: "cmsn return."
What is an Investor Account?
Investor Account is a trading account opened with TeleTrade, which is registered as an Investor Account under the TeleTrade Invest project.
How can I open an Investor Account?
To open an Investor Account, you are required to:
- Register a Client Login and open a trading account with TeleTrade.
- In the 'Investments' section, select the TeleTrade Invest menu item.
- Select a trading account which you are willing to register as an Investor Account.
- Grant the 'Investor' status to your trading account by pressing the corresponding button.
How can I link an Investor Account to a Trader Account?
To link an Investor Account to a Trader Account, you are required to:
- Select the TeleTrade Invest menu item in your Client Login, in the 'Investments' section.
- Select a trading account which you are willing to link to a Trader.
You need to give the 'Investor' status to that trading account, if required.
- Press the 'Connect Trader' button.
- In the window that opened, in the 'Trader's Contract / Nickname' field, enter the relevant Trader's information: Trader's Contract / Nickname.
- Press the 'Find' button.
- Read the information about the Trader and his commission reward, then press the 'Next' button.
- In the window that has appeared, set your copying rate and press 'Confirm'.
How can I disconnect my Investor Account from a Trader Account?
To disconnect an Investor Account from a Trader Account, you are required to:
- Select the 'TeleTrade Invest' menu item in your Client Login, in the 'Investments' section.
- Select a trading account, which you are willing to disconnect from a Trader Account.
- Press the 'Disconnect Trader' button and confirm the action in the pop-up window.
Why can an Investor Account be only linked to one Trader Account?
To achieve the maximum financial transparency in interaction between an Investor and Trader under the TeleTrade Invest project, one Investor Account can only be linked to one Trader Account. To create a portfolio of Traders, it is recommended to open multiple Investor Accounts and link them to respective Traders.
What is a Trader Account?
Trader Account is a special account registered with TeleTrade as a trading signal provider under the TeleTrade Invest project.
What is the minimum initial capital for a Trader?
To ensure the interests of Investors, the volume of equity in the Trader Account must be at least 2,000 USD.
How can I open a Trader Account with TeleTrade?
To open a Trader Account, you need to:
- Register a Client Login and open a trading account with TeleTrade.
- Deposit your trading account with at least 2,000 USD.
- Select the 'TeleTrade Invest' menu item in the 'Investments' section.
- Register your trading account as a Trader Account by pressing the corresponding button.
- Fill out your Trader's profile and account profile.
How is the Trader Account's yield calculated?
The Trader Account's yield is calculated based on the daily change in the account balance. No balance operation is included in the calculation of yield. This means that the yield data only reflect the results of the trading transactions on the Trader Account.
What does the volatility of daily yield mean?
The volatility of daily yield means a measure that reflects the extent of yield fluctuations in regard to its average value. Yield fluctuations are a risk. High fluctuations mean a high risk.
What is the risk parameter?
Risk is a normalized measure for fluctuations of daily yield over the last 14 trading days. If this value is high (5), it means that the Trader allows for high yield fluctuations, i.e. he uses aggressive trading strategies. A low value (1) indicates that the Trader's strategy is conservative.
What is a drawdown?
The current drawdown is the measure characterizing the current trading account balance (yield) in regard to its historical peak yield value.
The maximum drawdown is the measure characterizing the maximum decline in yield in relation to the previous local peak, which has ever been attained in the Trader Account's historical performance.
What is the recovery factor?
The recovery factor is a characteristic of the Trader Account's results, which is calculated as the ratio of the current yield to the maximum drawdown. The recovery factor illustrates to which extent the yield exceeds the maximum drawdown depth. When comparing two Traders that have the same yield, the best one would be the one whose recovery factor is higher, because his yield has been achieved with a lesser drawdown.
What is the Sharpe ratio?
The Sharpe ratio is a measure of the Trader's performance, which is calculated as the ratio of yield to yield volatility (fluctuations in yield). Yield fluctuations are a risk. High fluctuations sre a high risk, and these should bring a high profit. When comparing two Traders that have the same yield, the best among the two is the one who has a higher Sharpe ratio, because his yield has been achieved with lower risks.