Management Fees

Auto Flow Trading charges a percentage of profits (performance fee) only. Performance fees are based on a monthly high water mark. Should the investment drop in value then the manager must bring it back above the previous greatest value before they can receive performance. There are no sign up fees or extra commissions charged to the investor.

  • Minimum deposit is $20,000
  • No lock in period.
  • No yearly management fee, no entrance fee, no account management fee
  • You are free to withdraw your funds as you please.

At the end of each month, the performance fee will be applied to new profits on your account. A high water mark is established each time the performance fee is applied. This means no additional performance fees may be earned until this high profit watermark has been surpassed.

In order to be transparent we have made available a table outlining the tiered structure for performance fees. As the client deposits more funds into their account the performance fees paid will decline.

What is a High Watermark ?

A High Watermark, is a common approach to the calculation of performance fees. It means that performance fees are paid only on NET new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid. This ensures that Auto Flow Trading and its managers receive a performance fee only when the account value exceeds its previous high, cementing the fact that our interests are in line with yours.


Example:

You start with $100,000 in an account with a performance fee of 35%, and during the month there is $10,000 gross profit. The performance fee deducted would be 35% of $10,000, which is $3,500, so your net profit would be $6,500 and your account would now have a “watermark” new balance of $106,500.

If in the next month there was a loss of $1000, there would be no performance fee deducted, since there is no profit, and your new balance would be $105,500. Your “watermark” is still $106,500. So there will be no performance fee deductions until you get past your current “watermark”.

Getting Started!

 

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