A Doubling Cycle (DC) is a very important number for our methodology:
It describes the timespan that is needed to double an initial investment and withdraw it
When calculating the DC of a project, there are some things to take into account:
DC is always calculated with a $1000 initial investment. We don't care if there is a slight bonus interest if you invest six-figures. That's a trap, don't fall for it!
If there are multiple investment opportunities on a single site, we always base our calculations on the best one. Example hexabot: 2% daily or 22% weekly? 22% weekly of course, since this results in faster growth. This way our estimate is always on the conservative side.
No compounding. Why? Compounding requires you to put profits back into the system instead of withdrawing them. Putting money back into the system extends the lifespan of a HYIP. Since we want a conservative estimate, we do not include compounding for DCs
For Compounding a 100% reinvestment rate is assumed. Again, this is the fastest growth and results in a conservative DC number
Any referral earnings are ignored
Now that the Doubling Cycle for a HYIP has been calculated, what can we do with it?
You first have to understand that a doubling of invested money also requires a doubling of new users to pay the interest. The second thing is that nearly all HYIPs collapse because at some point not enough new users join the platform. This is usually the moment where payouts are stopped and the owner tries to grab as much money as possible.
So how does that tie into the DC? With every Doubling Cycle it gets twice as hard to find enough new users - so with every DC the risk of collapse increases significantly.
Our experience shows that a significant number of the HYIPs start collapsing some time after the 8th to 12th DC. So by multiplying the duration for one DC with 8 and substracting the current age of the HYIP we get a rough estimate of how long a HYIP could still be active. Based on that we can start
and decide whether or not an investment could be profitable.
Warning: Never rely on Doubling Cycles alone! They can give you a rough estimation, but it is very important to keep checking the regularly! As soon as you see a red flag in the health indicators, scale out - regardless of how may DCs a project has