Merged Accounts and Subaccounts

In this section

This setup does away with the necessity for a primary provider account as seen in the Signal Provider and Subscriber model. In the Merged Accounts and Subaccounts approach, various client accounts are merged into a single aggregate balance, which is then employed for trading activities on this collective virtual account.

In this arrangement, money managers do not require a separate provider trading account; instead, they conduct trades on a merged account created from the total balances of all client accounts. Trades executed on this merged account are then allocated across individual client subaccounts according to a chosen volume allocation method.

For instance, should one client account possess a balance of $10,000 and another $20,000, the merged Master account would reflect a total balance of $30,000.

Volume Allocation Methods

Users have the ability to select the method by which the master account's volume or position size is distributed among the client subaccounts. The main methods include percent allocation and proportional allocation.

Percent Allocation

This method allows for a specified percentage of the master account's position to be allocated to each client subaccount. For example, if the master account's position is 4 lots, with one client subaccount assigned 60% and another 40%, then the first subaccount would receive a position of 2.4 lots and the second subaccount 1.6 lots.

Proportional Allocation

This method dictates that the merged master account trades a fixed lot size, which is then proportionally divided among the client subaccounts based on their relative balances. If the merged master account trades 2 lots with an overall balance of $20,000, and subaccounts have balances of $15,000 and $5,000, the trade allocations would be 1.5 lots to the first subaccount and 0.5 lots to the second, corresponding to their proportional contributions to the total balance.