When investors replicate a Signal Provider's trades, the system applies a Copy Ratio to determine appropriate position sizes for the investor's account.
The Copy Ratio is essential for calculating the volume of trades in the investor's account. Each order's size in the investor's account is determined by multiplying the Signal Provider's original order size by this Copy Ratio.
Calculation Formula
The Copy Ratio is calculated using this formula: Copy Ratio = Investor's Account Equity ÷ Signal Provider's Account Equity
This ratio is initially established when an investment is created. It is then recalculated in two specific scenarios:
At the conclusion of each billing period
When the Signal Provider makes a deposit into their strategy account
During recalculation, all existing investment orders close at current market prices and reopen with adjusted volumes based on the new Copy Ratio.
Important Note: The Copy Ratio never increases after investment initiation, regardless of any withdrawals made from the Signal Provider's account.
Copy Ratio Recalculation Scenarios
When a Signal Provider Deposits Funds:
All open positions in investor accounts close at current market prices
The Copy Ratio decreases as the Signal Provider's equity increases from the deposit
Orders reopen at the closing price with zero spread in investor accounts using the recalculated Copy Ratio
At Billing Period End:
All orders automatically close and reopen with a recalculated Copy Ratio
In some cases, the Copy Ratio remains unchanged if the investment equity has decreased proportionally due to performance fee withdrawals
Understanding the Copy Ratio mechanism ensures investors can properly manage their expectations regarding position sizes when copy trading.
For additional assistance with Copy Ratio calculations, please submit a ticket through our Service Hub, contact us via Live Chat, or email [email protected].