What is the High Water Mark in PU Copy Trading?

The High Water Mark (HWM) is the highest historical value reached by a copy trading account based on its Current Water Mark (CWM). It serves as a reference point for tracking the account’s highest performance level and determining whether a new high has been reached. The HWM is also used in the calculation of profit sharing for applicable copy trading strategies.

What is the Current Water Mark (CWM)?

The Current Water Mark (CWM) represents the current profit or loss level of the copier's account compared with the original copying funds. It takes the account's current equity, including floating profits or losses from open positions, into account.

CWM = Current Equity − Copying Funds

How the High Water Mark Works

- Current Water Mark (CWM) = Equity − Copying Funds
- High Water Mark (HWM) = The highest historical CWM
- Profit sharing is calculated only when the CWM exceeds the previous HWM.
- If the CWM is equal to or lower than the HWM, no profit sharing is deducted.

This means that if the account experiences a negative floating profit or remains below its previous highest level, the copier does not pay additional profit sharing until the previous high-water mark is exceeded.

*Eligible Profits Deduction for Sharing = Positive Difference between CWM - HWM (negative will be no profit sharing)

Important Information

If the Current Water Mark (CWM) goes down, the High Water Mark (HWM) stays the same.
The High Water Mark (HWM) changes only when the account reaches a new highest Current Water Mark.