Everything you need to know about portfolio allocation

Portfolio Allocation:

When you set up your allocation, you need to associate a percentage of your capital on each strategy. 


In this case, we have :

  • the SOL LO bot allocated at 34%,
  • the BNB LO bot allocated at 33%,
  • the Prebuild High Volatility strategy allocated at 33%.

Thus, in the case where the user has an investment capital equal to 1000€, this means that the SOL LO bot will be able to use a maximum of 340€ from the user's portfolio. Of course, it is not mandatory to use this 340€ and will be able to open positions for an amount much lower than this. 

Note that only users with Gold or Platinum plan can adjust their allocation. 

In case the user has a Silver plan, the distribution of his allocations will be proportional to the number of bots used. For example, if the user decides to use five strategies, each bot can invest up to 20% of the user's portfolio. 


Net Performance:

As stated on our website and in several FAQ articles, the performances we present are gross performances that do not include transaction fees and slippage levels. Keep in mind that once you have created an account, connected an Exchange and selected strategies, you can simulate the net performance of your portfolio based on historical data. 


Net Positions:

All of our bots' positions are taken directly on your exchange. 

However, if several bots invest in the same asset, you will never see several different positions displayed on your Exchange. 

Specifically, if you have two LO bots investing in BTC at the same time, then only one position with the total amount invested will be displayed on your Exchange. As far as the P&Ls of the two positions are concerned, they will substitute each other so that the overall average P&L of the two positions is displayed. 

This works the same way with AR and LO bots. For example, if you have an AR bot that is short BTC and on the other hand a LO bot that is long BTC, then the P&L displayed will be equal to the sum of the two P&Ls so that the overall average P&L is displayed. 


Net Funding:

If your funding is not in fiat currency (Euro or US Dollar) or stable coin (USDT), the performance of your funding will be added to the performance of the trading bots you have selected. If you use Bitmex as an exchange for example, your funding is necessarily in BTC. Let's assume that you follow only one strategy that generates a performance of 70% over a certain period of time, and that the performance of Bitcoin is 40% over the same period of time, then the performance of your portfolio is the sum of the two performances. Now suppose you follow only one strategy that generates a return of 20% over a certain period of time and the performance of Bitcoin is -20% over the same period of time, in this case your net performance evens out, leaving you with a return of 0% over the given period of time. 

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