Bob (Provider) generates $1,000 in profit for Alice (Follower) in April. This is the new HWM for Alice, allowing Bob to receive performance fees for his trading strategy.
Then, in May, his trades incur a loss of $400 for Alice so her account now stands at $600. Bob doesn’t receive any performance fees as his trades didnt generate any profit for Alice.
Finally, in June, Alice gains $300 from copying Bob’s trades. In this case, Bob will still not receive a performance fee because $600 + $300 = $900. This is less than the established HWM of $1,000.
For Bob to be able to get a performance fee, he would have to increase her profits above $1,000 again.