Why is the weekly income different in case ofthe same managed accounts
Several people indicated this week that they had experienced different percentage results on their managed accounts than what I have. I would like to reveal the reason of this to you. During trading, the accounts are merged to a big account and trading is carried out there. The results are distributed depending on the size of the capital, the trading units are distributed to the accounts. Since the minimum trading unit is 0:01 lot, which cannot be divided further, the minimum capital size is determined, that can be placed on the account (this is not the only factor that determines it, but the two values are close to each other. There may be a currency pair that trades in a higher transaction size even on the smallest account, but if one of the traded pairs can be traded only in 0.01, this will be applied). This means that the trading size can only be raised with the whole number multiples of the minimum capital requirement. So it does not rise linearly, but gradually. Of course, the differences are striking only in case of small accounts, because the transaction size of a $ 20,000 account may increase each month.
For example, let’s assume that the transaction size rises by each $ 2,000. In this case, if a weekly 2% result is generated on a 2.010 dollar account, this means only an approx. 1% result on a 3990 dollar account in the same week. But after that, the average decreases on a smaller account, until it reaches the $ 4,000 balance, where the transaction size increases. While on the bigger account, the result makes a big jump from the following week..
The balances are checked at 3tgbrokers at the end of the month and transaction sizes are corrected based on the balance. There is no public information on the size of the increments in case of each account, but it is likely that these values vary between $ 1,000 and $ 2000. This value is $ 1,500 in case of a 5gulden account.
Overall, if we examine an account in the long run, these differences are evened out.
(This week’s results of some of my 5gulden accounts, related to the capital: $ 2050-2.9%, $ 2420-2.5%, $ 2700-2.2%, $ 3300-2.7%)