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Copy Trading Feature Guide

A Comprehensive Walkthrough

Preface: Key Concepts & Scenario Setup

Before we begin, let’s establish the definitions and the baseline scenario for the examples below:

  • Copy Relationship: You are the Follower copying a Lead Trader (Signal Source).

  • Capital Ratio: To simplify calculations, we assume a 10% ratio. If the Lead Trader trades 1 BTC, your account automatically trades 0.1 BTC.

We will use the fictional Lead Trader "BTC Master" and their Bitcoin (BTC) trading activities to demonstrate the complete lifecycle of these features.

1. Copy Open Position

  • Description: This is the foundation of copy trading. When enabled, the system monitors the Lead Trader for new opening actions. Once the Trader establishes a new position (Long or Short) for a specific asset, your account immediately replicates this action proportionally. This marks the start of following a new trading strategy.

    • Note: Defaulted to ON during setup.

  • Scenario: You follow "BTC Master" with "Copy Open Position" enabled. "BTC Master" buys 1 BTC at market price (opening a Long position). Immediately, the system automatically buys 0.1 BTC (Long) for your account.

2. Copy Position Increase (Add-on)

  • Description: This manages the expansion of existing holdings. If the Lead Trader adds margin or increases the size of an open position—usually to capitalize on a trend or average down costs—this feature determines if your account follows suit.

    • Note: Defaulted to ON during setup.

  • Scenario: Both you and "BTC Master" hold long BTC positions. As the price rises, "BTC Master" buys an additional 0.5 BTC. If this feature is on, your account automatically buys an additional 0.05 BTC.

    • Note: If Inverse Trading is active, this will increase your position in the opposite direction.

3. Copy Position Reduction (Trim)

  • Description: This manages partial profit-taking or risk reduction. When the Lead Trader sells only a portion (not all) of their position, this feature determines if your account proportionally reduces its holding.

    • Note: Defaulted to ON during setup.

  • Scenario: BTC prices rise further, and "BTC Master" decides to secure some profit by selling 50% of their total holding. If enabled, the system automatically closes 50% of your position. If disabled, your position size remains unchanged.

    • Note: If Inverse Trading is active, this will reduce your position in the opposite direction.

4. Copy Close Position

  • Description: This controls the complete termination of a trade. When the Lead Trader sells their entire position in a specific asset (flatting the position), your account will synchronize and close the entire position as well. This marks the end of the copy trading cycle for that specific trade.

  • Scenario: "BTC Master" believes the trend is over and sells all remaining BTC Long positions. Regardless of whether your account is in profit or loss, the system automatically closes your entire BTC position.

5. Open via Add-on (Entry on Increase)

  • Description: This is a catch-up or independent entry feature. If you currently have no position in an asset (perhaps because you followed the trader after they opened the trade, or had "Copy Open" disabled), but the Trader subsequently adds to their position, the system treats this "Add" signal as an "Open" signal for you.

    • Important: Your entry price will be the Trader’s "Add-on price," not their original entry price.

  • Scenario: You missed "BTC Master's" initial BTC entry. Later, he adds to his position. With "Open via Add-on" enabled, the system opens a new BTC position for you (e.g., buying 0.05 BTC) at the current market price, effectively allowing you to enter the trade mid-stream.

6. Inverse Trading

  • Description: A counter-trading or hedging strategy. When the Lead Trader opens a position, the system automatically executes a position in the exact opposite direction. This is often used when a user believes the consensus is wrong or wants to hedge against market movements. Subsequent Adds/Reductions apply to this inverse position.

  • Scenario: "BTC Master" buys 1 BTC (Long). If "Inverse Trading" is enabled, the system sells 0.1 BTC (Short), taking a position directly opposite to the Master.

7. Copy Pending Orders (Limit Orders)

  • Description: This synchronizes the Trader's strategy planning, not just immediate execution. When the Trader sets a Limit Order (e.g., "Buy BTC at 60,000"), the system places an identical Limit Order in your account. The trade only executes if the market price hits the target.

  • Scenario: "BTC Master" sets a pending order: "Limit Buy 1 BTC @ 60,000". Your account automatically places a pending order: "Limit Buy 0.1 BTC @ 60,000". The trade will only execute if the price drops to 60,000.

8. Liquidation Protection

  • Description: An ultimate risk control mechanism. If the Lead Trader's position is liquidated (force-closed) by the exchange due to high leverage or extreme volatility, the system will immediately close your corresponding position, regardless of your own margin health. This protects you from the unpredictable market conditions that caused the Trader to crash.

  • Scenario: The market crashes and "BTC Master's" Long position is liquidated due to insufficient margin. Even if your account is safe (due to lower leverage or higher balance), "Liquidation Protection" triggers immediately, closing your BTC Long position to prevent further exposure.

9. Auto-Pause (Stop-Loss Protection)

  • Description: A vital automated safeguard. The system monitors the PnL of every completed trade (from Open to Close) by the Lead Trader. If three consecutive trades result in a loss, the system automatically pauses following any new opening signals from that Trader. This prevents continuous capital drain during a Trader's "cold streak."

  • Scenario: You follow "BTC Master" with Auto-Pause on.

    1. Loss 1: Master Longs BTC -> Closes at a loss.

    2. Loss 2: Master Shorts ETH -> Closes at a loss.

    3. Loss 3: Master Longs SOL -> Closes at a loss.

    • Action: Upon the third consecutive loss, the system Pauses copying. Your account will ignore any new positions opened by "BTC Master" until you manually reactivate following in the settings.

Recommended Configuration Strategies

  • The "Full Mirror" (Classic):

    • Enable: 1 (Open), 2 (Add), 3 (Reduce), 4 (Close), 8 (Protection).

    • Logic: You completely replicate the Trader’s active management lifecycle, from entry to exit, while ensuring safety if they get liquidated.

  • The "Idea Only" (Autonomous Risk):

    • Enable: 1 (Open), 4 (Close).

    • Disable: 2 (Add), 3 (Reduce).

    • Logic: You only copy the entry and final exit points. You ignore their mid-game position adjustments, keeping your position size constant.

  • Strategic & Recovery Tools:

    • Use 5 (Open via Add-on) if you missed the initial boat.

    • Use 6 (Inverse) for hedging or betting against a trader.

    • Use 7 (Pending Orders) to capture specific price points.

    • Always use 9 (Auto-Pause) to protect your capital from a Trader's poor performance streak.

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