"Notional Funding Percentage" is the percentage of your investment that you actually fund your account with. For example, a $100,000 account using 25% notional funding means that you fund your account with $75,000 ($100,000 - 25%) of actual capital, but your account is treated as if it was worth $100,000 for purposes of calculating trading volumes.

Your funding level will be set on the 1st of each month and will be based on the value of your account at the end of the previous month, corrected for your notional funding percentage, then rounded down to the nearest $25,000. You have the opportunity to change this funding level prior to the start of each month. You can communicate your new funding level to us by email greg@algolabcapital.com

Example:
Notional funding % = 25%
Jan ending account cash value = $110,000
Corrected ending account funding level (notional) = $110,000/.75 = $146,666
Funding level = $146,666 rounded down to nearest $25,000 = $125,000

Funding your account with less capital than the standard requirement serves to increase the volatility of your returns by increasing your returns, while also increasing your drawdowns. Funding your account with more capital than the standard requirement (as in the case of an IRA account for example) serves to reduce the volatility of your returns by reducing your return while also reducing your drawdowns.

A drawdown is a peak-to-trough decline during a specific period for an investment. A drawdown is quoted as the percentage between the peak and the subsequent trough. If a trading account has $10,000 in it, and the funds drop to $9,000 before moving back above $10,000, then the trading account witnessed a 10% drawdown.

The estimated average annual returns and drawdowns shown in the table below are estimates based on the last 3 years of actual trading and are net of all commissions and fees. Actual annual returns may be lower. Actual maximum annual drawdowns may be higher.

You can view performance history, and real-time status of your trading account at anytime at https://dashboard.thealgolab.com

Your dashboard page includes a link to an account with the alias name "AlphaEngineComposite". This chart shows the account value of every AlgoLab managed account over time based on $1000 invested. Values have been adjusted to equalize risk (notional funding) and are net of all commissions and fees. The Composite line is an average of all accounts that were active during the entire date range selected (any accounts that started trading after the start date are NOT included in the composite average calculation). To reduce trading costs, AlphaEngine strategy enters new trades using limit orders. A limit order offers the benefit of eliminating slippage costs, but these orders are are not always filled. To increase the likelihood of being filled on a new position, AlphaEngine uses a trade entry algorithm which randomly adjusts trade entry prices so that all accounts are not placing orders for the same symbol at the same price. Different entry prices for all new positions may also result in slightly different profit or loss between accounts, and some new positions may not be filled at all. In addition to different entry and exit prices, AlphaEngine uses a unique method of adjusting trading volume based on the total available capital called synthetic fractional contracts. The objective is to increase trading volume as profits increase by periodically trading an additional contract which simulates the effect of trading a fractional contract. This additional contract traded is random and will result in different profit and loss comparisons between accounts.