Yes that is the reason. But think it through for a moment. If I do well and rescale from time to time the retroactive starting equity will approach zero. In fact when you half something over and over it approaches zero very quickly. And that means the returns get decimated. Already the starting equity after rescaling is down to $12k so on the next rescale it would be $6k and then even a return of 30% would be a down year. This isn’t just an unfair byproduct, it is totally false and misleading since I would never charge 30% to subscribe to my strategy.
It would be a huge step toward transparency if C2 would add further options to the drop-down box to show returns (and chart) with the appropriate rescale-adjusted fees and another option for no fees at all (per another forum discussion).
