Copy Rules on TraderWagon
How does copy trading work?
When copying a portfolio, the system automatically replicates the trades made by lead traders to the copy traders.
However, since lead traders can use market, limit, stop-limit and stop market orders to open positions, these different order types will result in different copy rules for copy traders.

Opening a position:

Market order & Stop-Market order:

When a lead trader uses a market or stop-market order to open the position, the system will create an Immediate-Or-Cancel (IOC) order to open the position for copy traders.

Limit order & Stop-Limit order:

When a lead trader uses a limit or stop-limit order to open a position, the system will only create the IOC order for copy traders when the limit or stop-limit order has been fully filled on the lead trader's side.

How to calculate the position size?

In general, the copy trader position size in opened in proportion to the lead trader's position size. However, slippage and open loss can affect the position of copy traders which may lead in a difference in the position size opened for copy traders.
For example:
A lead trader has a balance of 1,000 USDT and opens a position with an initial margin of 500 USDT or 50% of his balance. If one copy trader has a copy amount of 500 USDT, the system will use 250 USDT to open the position for him/her.
However, take note that the final position size opened may still be less than 250 USDT due to factors like slippage and open loss.
Why is the copy trader's position size less than the lead trader?

Margin, Position Mode, and Leverage:

  1. 1.
    Lead traders can choose one-way mode or hedge mode to open a position and the system will open the position for copy traders using the same position mode.
  2. 2.
    Lead traders can open a position via isolated margin or cross margin mode and the system will copy the position for copy traders using the same margin mode.
  3. 3.
    Copy traders could select low leverage copy mode when starting copying, the leverage cannot be adjusted during the copy. For more details, please refer to: Copy Rules for low leverage copy
Tips:
When a lead trader adds margin to an isolated position, the system will automatically add the margin for copy traders. The margin will fail to be added if the margin balance is insufficient on the copy trader's side.
Lead traders can add funds their portfolios. However, the system won't automatically add funds for copy traders. If there is an open position in the portfolio, adding more funds will cause a larger risk exposure to copy traders. Because of this, copy traders can consider if they would like to add more funds or stop copying immediately.

Opening an opposite position:

Under one-way mode, lead traders can create an order to open an opposite position.
  1. 1.
    If both lead trader and copy trader have the same open position: When Lead traders create an order to close the current position and open an opposite position, the system will only close the position for the copy trader but the opposite position will not be opened.
  2. 2.
    If the lead trader has an open long position, but the copy trader doesn't have the same position: When the lead trader creates a sell order to open an opposite position, the system will open a short position for copy traders.

Closing a Position:

Market order & Stop-Market order:

When a lead trader uses a market order or stop-market order to close a position, the system will close the copy trader's position with a market order.
If the lead trader has a position of 1 BTC and he partially closes 0.2 BTC or 20% of the position size, the system will close 20% of the copy trader's position.

Limit order & Stop-Limit order:

When a lead trader uses a limit or stop-limit order to close a position, the system won't create the close the position for the copy traders until the limit or stop-limit order has been fully filled.

What factors can cause the copy to fail?

  1. 1.
    The order size is less than the minimum order size;
  2. 2.
    When a lead trader uses a limit or stop-limit order to open the position but the order hasn't been fully filled;
  3. 3.
    When the market slippage exceeds the limit indicated (refer to the slippage rule for more details);
  4. 4.
    When a lead trader opens an opposite position (check here).
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Opening a position:
Margin, Position Mode, and Leverage:
Opening an opposite position:
Closing a Position: