Copytrading is a service for automatic copying of trades of a Master Trader by a user. Trades are copied in proportions of trades to the trader’s balance. For example, if a trader has placed an order for 10% of his total balance, then the user will also have an order for 10% of his balance. In order to avoid errors that may arise due to differences in balances, a minimum balance is set for the user to start Copytrading.
To start copying trades of a Master Trader, you need:
- It is necessary to connect a «clean» account to the system, which does not connected to other manual or automated trading systems, except for trading on this channel. For each copytrading channel, you need to connect a separate account, since the system uses the entire account balance.
- When connecting, all funds on the account must be transferred to the main coin of the channel (USDT / BNB / XRP, etc.)
- If there are coins on the account balance (or open positions for futures) that were not opened as part of trading through this channel, then at launch all coins will be sold to the main coin, all open positions will be closed. Also, such an adjustment will occur every time the channel is restarted by the user or master.
- The user account must be switched to the appropriate trading mode on the exchange: one-way or hedging mode. The mode must match the selected mode in the channel. If the mode does not match when connecting an account, an error (wrong direction) will be displayed on the interface, trading in the wrong mode will not be carried out. Also the mode check will occur when creating each transaction (in case the user later switches the mode on the exchange)
- The user is advised to control trading and monitor the appearance of errors and warnings on the interface.
- The user must monitor the performance of the API-key (if the key has become inactive the Invalid API-key error will be shown on the interface), replace the key as soon as possible and restart trading in the channel.
- The user must not deposit or withdraw funds during the active deals. Proportions are calculated once a day, so if the balance changes significantly, the proportions will be incorrect. If there was a balance change, it is necessary to restart trading in the channel. It is important to restart trading, because without restarting the system will update the proportions only the next day.
- If the user’s account has become less than the minimum amount, the user is advised to deposit the balance to the required minimum and restart trading. (If the user trades with a balance less than the one that was calculated as the minimum, then perhaps the proportion will not be enough for the exchange minimum and the user will miss part of the transactions).
- The service is organized according to the principle of Positions. A position is one or more orders to buy or sell of one asset.
- The aim of the Position is to extract the maximum profit based on the results of trades performed for one asset.
- A set of positions is one or several orders to buy one asset.
- Reducing a position is one or several orders to sell one asset.
- Gaining and Reducing Positions may occur unevenly. For example, one lot was bought for $ 1000, and 2 lots were sold for $500, and vice versa.
- When making deals on a new asset, new Positions will be opened.
- All previously executed by the Master Trader trades and open Positions will not be taken into account when connecting a new user.
- When trading on Binance Futures, it is important that hedge mode is disabled!
- When changing the balance (depositing or withdrawing funds to the account wallet) it is necessary to stop Copytrading and relaunch it to avoid system errors.
Exceptions in mechanics:
- The user joined Copy Trading after some of the trades for the Position had already been opened on Master trader account, and the Master Trader decided to sell the old and new volumes simultaneously, what exceeds the user’s volume — all the volume the user bought will be sold, that is, the maximum is sold.
- The master trader makes a sale for an amount that, when copied by the user, is less than the minimum trading lot on the exchange — the user will make a sale for the amount of the minimum trade on the exchange. At the same time, if the balance of the Position is less than the minimum lot on the exchange, then the user will sell the entire volume, and the user’s position will be closed earlier than the Master trader’s one.