What is the compound function (auto invest)?
The function of the "compound" button signifies that the allocation amount won't remain fixed for each position; instead, it will aggregate the daily results.
Here's an example of how it works:
- Beginning with a $100 allocation.
- If there's a 2% profit the following day, your allocation will increase to $102 (rather than remaining at $100).
- Conversely, if you experience a 10% loss on a particular day, your allocation will be adjusted to $90 (instead of $100).
In essence, it allows for the compounding of daily results to be applied to the position size calculation.
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