Special Copy Trading Notes -Traders
Updated at:16 days 21 hours ago
1.Notes for copy trading - traders
Note1: The Lead Trader needs to acknowledge that the copier will copy the position change of the lead trader without considering the copy multiple, leverage system and single transaction constraints until the copier's copy funds are no longer available.
Note2: The copy transaction is made based on the changes of the combined positions in logic, so the copier can only do one-way copying operations. It is recommended that the lead trader should make a one-way transaction【The current version only enables lead traders to do a one-way future operation】.
2. Detailed description for Note 1
Currently, the Gate.io copy amount is based entirely on the trader's position. For example, the copier's copy amount is 100 USDT in total. When following trader A, the trader invests 90 USDT in a future, then the copier will follow 90 USDT, then, the trader immediately invests 100 USDT in another future, but the copier only has the copy amount of 10 USDT left, then the copier will put the remaining 10 USDT all in. If the trader continues to invest 100 USDT next, then the copier will not continue to copy because his copying funds are not allowed. This will lead to inconsistent income between the copier and the trader.
It is suggested that the trader should pay attention to the fund situation of the copier when lead trading.
When considering copy multiples, leverage, regardless of transaction fees and funding rates:
If the lead trader has a total of 1000U of funds, of which 100U is used to buy A currency future, with a leverage of 100 times. Then the value of the constructed position is 100*100=10000U；
The total number of copy funds for the copy user is 100U, with the copy multiplier set to 0.1, and the leverage set to 20 times. Theoretically, the copy position of the copier following the above transactions is 10000 * 0.1 = 1000U in total. The copier needs to invest a margin of 1000/20=50U to copy, then the remaining available funds of the copier are 100-50=50U;
Subsequently, the lead trader used 200U to buy the B currency future, with a leverage of 100 times. Then the value of the position is 200 * 100 = 20000U;
At present, the copier has a remaining available fund of 50U, with a leverage of 20 times and the maximum position value that can be built of1000U. If the copier want to continue to follow the lead trader to buy B future, the copier can only build a position of 1000U. So far, the copy funds are all used up.
At this time, when the price of both A and B coins has risen by 10%, and the trader closes the with position,
Earnings of the trader: (11000-10000) + (22000-20000) = 3000U;
Earnings of the copier: (1100-1000) + (1100-1000) = 200U
3. Detailed description for Note 2
Presently, the Gate.io copy system is based on the combined position of the lead trader. For example, the lead trader opened 10 long orders at the coin price of 8000. The trader wanted to go short when the coin price was 7050, then 8 short orders were opened, so the combined position was 2 long orders. Therefore the lead trader’s copiers will end up copying 2 long orders.
This will lead to inconsistent income between the copier and the trader. It is suggested that the lead trader initiates a one-way transaction.