Above All, Transparency and Fairness.
We give our clients the full transparency they deserve.
Over the years, we have noticed eroding trust and confidence levels in the financial industry.
Scams in the financial industry has been rampant.
At AlgoInsights, we aim to reverse the situation and take this trust and confidence issue to the next level.
We accomplish this at 3 different touchpoints.
First, each client would download an app onto their smart phone. Doing so will allow them to know their trade activities in their trading accounts instantly anywhere around the world. It is live, 24 hours a day and 5 trading days a week.
Second, each client will receive their daily trade report and a monthly trade report at the end of the trading month.
These are NOT consolidated trade reports like you would see from others but they reflect each individual trade that took place in your trading account everyday throughout the trading month.
In addition, these reports are generated and sent directly from AxiTrader to you via your email address.
You are the first and single recipient of your trade reports. No one else.
Third, each client trading account is in the personal or corporate name of the client. This is a segregated, escrow bank account held in a national bank where the funds of each client is held.
Only clients have access to this segregated, escrow bank account. No one else.
We go through great lengths to give our clients the full transparency they deserve.
This is one great way we build trust and confidence with our clients.
At AlgoInsights, we believe in the business concept of "Win-Win or No Deal."
We want to be completely fair to our clients and we want our clients to be completely fair with us as well.
This is the reason why we employ the industry standard of 0.18% monthly Management Fee and a 20% Performance Fee using the High-Water Mark methodology to profit-share with our clients.
In other words, if we do not make profits for our clients on any month, we do not get to profit-share with our clients for that particular month. Period.
This has been our standard of fairness that our clients love.
What is High-Water Mark
High-Water Mark is an important profit-sharing methodology for our clients.
It ensures our clients on 2 fronts.
Firstly, clients do not have to pay us Performance Fee for poor performance, and
Secondly, and more importantly, it guarantees that our clients do not pay us Performance Fee twice for the same amount of performance.
Please read "High-Water Mark in Practice" for more understanding.
High-Water Mark in Practice
A client opens an account with $1,000,000 equity and during its first month, the account earns a 15% return. Thus, the client's original equity is now worth $1,150,000. Therefore, the client is obligated to pay a 20% Performance Fee on this $150,000 gain, which equates to $30,000 to the Account Manager. At this point, the High-Water Mark for this client is now at $1,150,000.
Next, assume the fund loses 20% in the second month. The client's account equity drops to a value of $920,000 from $1,150,000.
This is where the importance of the High-Water Mark is noted.
In this case, the client does not have to pay the Performance Fee of 20% on any gains from $920,000 to $1,150,000 (also known as Loss Recovery) but only after the High-Water Mark amount of $1,150,000 in this example.
Assume in the third month, the account unexpectedly earns a 50% return. The value of the client's account equity rises from $920,000 to $1,380,000.
With a High-Water Mark in place, the client would only pay the performance fee of 20% on gains of $230,000 calculated from $1,150,000 to $1,380,000 which equates to $46,000 to the Account Manager.
Without a High-Water Mark in place, the client would have to pay the performance fee of 20% on all gains of $460,000 calculated from $920,000 to $1,380,000 which equates to $92,000 to the Account Manager.
Value of a High-Water Mark
The High-Water Mark prevents this "double fee" from occurring.
With a High-Water Mark in place, all gains from $920,000 to $1,150,000 are disregarded. But gains above the High-Water Mark of $1,150,000 are subject to the performance fee of 20%.
In this example, beyond the original $30,000 performance fee in the first month, the client owes 20% on the gains from $1,150,000 to $1,380,000, which is an additional $46,000.
In total, with a High-Water Mark in place, the client owes $76,000 in performance fee to the Account Manager, which is $1,380,000 less the original equity of $1,000,000 multiplied by 20%.
Without a High-Water Mark in place, the client owes a 20% performance fee on all gains, which equates to $122,000.
Therefore, the value of a High-Water Mark for our clients is unquestionable.