Allocation Methods
When using our MAM Software*, you can choose between four different allocation methods:
- Equity
- Even
- Balance
- Lot
During the first launch, your allocation method will be set to Equity by default. In order to change it to another type, send a request to our Support Team. Make sure that you don’t have any open positions on your Manager Account when sending a request.
Below you’ll find a short description of all four methods.
Equity
When using this method, the trades will be distributed between your Investors based on their percentage share of the total equity on the Manager Account.
Example
| Investor 1 equity | $10,000 | Investor 2 equity | $7,000 | Investor 3 equity | $2,000 |
| Total equity | $19,000 | Total equity | $19,000 | Total equity | $19,000 |
| Share % | 0.5263 | Share % | 0.3684 | Share % | 0.1052 |
| MM lot size | 10.00 | MM lot size | 10.00 | MM lot size | 10.00 |
| Investor lot | 5.26 | Investor lot | 3.68 | Investor lot | 1.05 |
The residual volume of 0.01 lot from this example will be further allocated evenly between all Enabled Investor Accounts, starting with the Account with the largest equity. Since the minimum volume for allocation is 0.01 lot, the remaining volume will be allocated on Investor 1 Account in full.
Even
Use this method if you want to allocate your trades evenly between all your Investors, despite the size of their equity or balance. Any residual volume will be evenly distributed between all your Investors, starting with the first Investor Account on the list and working down.
Balance
This allocation method is close to Equity, yet the volume is distributed based on the percentage share of the total balance.
Example
| Investor 1 balance | $1,000 | Investor 2 balance | $5,000 | Investor 3 balance | $10,000 |
| Total equity | $16,000 | Total equity | $16,000 | Total equity | $16,000 |
| Share % | 0.0625 | Share % | 0.3125 | Share % | 0.625 |
| MM lot size | 5.00 | MM lot size | 5.00 | MM lot size | 5.00 |
| Investor lot | 0.31 | Investor lot | 1.56 | Investor lot | 3.12 |
The total allocated volume here is 4.99 lots. Just as with the Equity method, the residual 0.01 lot will be opened on the Investor Account with the highest balance - #3.
Lot
For this method, you manually choose the lot factor and set it for each Investor individually. The trades will be allocated according to this lot factor, despite the Investors’ equity and balance size.
Example
| Investor 1 | Investor 2 | Investor 3 | |||
| Lot Factor | 1 | Lot Factor | 2 | Lot Factor | 4 |
| Total Lot Factor | 7 | Total Lot Factor | 7 | Total Lot Factor | 7 |
| MM lot size | 5 | MM lot size | 5 | MM lot size | 5 |
| Share, lots | 0.71 | Share, lots | 1.42 | Share, lots | 2.85 |
The total residual volume of 0.02 lot will be evenly allocated between the Investors in minimum lots of 0.01, starting with the Investor with the highest lot factor and moving to the Investor with the next highest factor, etc. In our example, first 0.01 will go to Investor 3 and then to Investor 2.
* MAM Software - Multi-Account Management software