We are receiving a lot of questions from traders about the functionality of our copy trading system. So we decided to dedicate this article to covering all the details of effectively working with the system. There are two main components involving copytrading system:
Master is the trader's account in which trades are being set. (It is the leading account).
The follower is the user’s account that copies the trades from the master’s account. (It is the following account)
What is the reason for orders not being copied?
There are three reasons why orders may not be copied:
1. The follower’s size of the order is too small. When calculating the ratio of the master's lot size to the followers’ lot size, the follower’s lot may be less than the required minimum for creating an order set by the exchange. This may happen if the master's deposit is much larger than the follower’s deposit
2. The failure to copy the “Reduce Only” order may occur when the master has an open position, but the follower does not because the follower linked the account after the position was opened. There is nothing to worry about since the follower does not need to close an open position. If you still need to create this order for the follower, then the master can create an order without the “Reduce Only” dedication, such an order will still be copied.
3. Orders will not be copied due to insufficient margin. If the master uses an isolated margin and uses the entire deposit, or the full cross margin leverage, then there is a high probability that such orders will not be copied due to insufficient available margin. Lack of margin may occur due to the smallest error in the calculations of the ratio of the lot size in the follower's account. To avoid such situations, we do not recommend using an isolated margin for the copy trading system and always keep an adequate amount of assets to cover the margin.
What are the limitations of the copy trading system?
There are two types of restrictions for the master. No more than 100 simultaneous orders of any type, and no more than 50 simultaneously open positions.
Is there latency in copying trades?
The system copies transactions instantly within one second. Sometimes there are technical issues on the part of exchanges when data on the socket does not arrive or arrives with an error, this is a very rare case, but, nevertheless, this can happen, especially when the exchange is overloaded. In this case, transactions will be synchronized within a minute via the REST API.
Is it possible to use scalping strategies?
Strategies, when the position is open for less than 5 seconds or using trading pairs with limited liquidity, will not work efficiently, since at some point there will not be enough time and liquidity to open/close a position.
Why are positions still open on the master’s account, but closed on the follower’s account?
This can happen for two reasons. The first case is extremely rare, but still, we will describe it. If there are technical problems on the part of the exchange, and at some point, the exchange gives a list of positions with zero contracts, the copy trading system will see it as closed positions for the master and will try to close these positions in the follower’s account. The second reason is the overleveraged margin. In this case, the exchange liquidates the position. Margin discrepancy can occur for several reasons. The first reason is an error in the calculation of the Master/Follower ratio of the lot size. The second reason will be relevant to the market orders when the follower is entering into the position at a price slightly less favorable than the master.
Is it possible for the master to increase a deposit?
Only if all the positions are closed. Do not increase the deposit with any open positions. The copy trading system calculates an increase in the deposit as a decrease in the lot size since the ratio of the lot size is calculated precisely based on the number of open contracts in relation to the deposit. If the deposit has increased, it means that the ratio has decreased, respectively, the system will synchronize the entire trading position, and part of it will be closed. If the position was in the red (loss), then, accordingly, part of the position will be closed resulting in a loss.
Is it possible to use the master account to receive commission or success fee?
Again, only if all positions are closed. Depositing commissions or a success fee to your master account will increase the deposit on the master account, And, if there are any open positions, it will disrupt the ratios, and might close some positions at loss.
Conclusion
Maybe, to work correctly, the copy trading system will require small adjustments in your established trading strategy. You need to take into account the above details, especially, we recommend paying attention to the leverage used for averaging positions. Your followers’ deposits might be completely liquidated if their positions are overleveraged.
If you take into consideration all details described above, then our copy trading system will be working as intended. We wish everyone a large profit!
Join the mighty AIVIA Community!
📢Telegram Channel: https://t.me/aivia_announcements
💬Telegram Chat: https://t.me/aivia_io
🕊Twitter: https://twitter.com/aivia_io
📃Medium: https://medium.com/@aivia