Understanding Copy Trading Failures: A Comprehensive Guide
Thank you for choosing Toobit's copy trading service! We’re committed to providing a seamless and rewarding experience. However, copy trading can sometimes face challenges due to various factors. This guide delves into common reasons behind copy trading failures and offers valuable insights for both followers and pro traders.
1. For Pro Traders
Pro traders play a pivotal role in copy trading success. Here are some potential reasons for trade failures on their end:
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Maximum Followers Reached
Pro traders have a set limit on the number of followers they can accommodate. Once this threshold is reached, new followers cannot connect until space becomes available.
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Account Revocation
If a pro trader's account is revoked due to policy violations or inactivity, followers will no longer be able to copy their trades.
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Elite Trader Limitations
Elite traders also face restrictions on how many pro traders they can establish under their portfolio. This limit can impact copy trading availability.
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Partially Filled Orders
Followers cannot replicate a pro trader’s order if it is only partially filled in the market.
2. For Followers
Followers need to meet certain requirements to ensure successful copy trading. Common issues include:
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Insufficient Funds
Followers must maintain adequate USDT funds in their trading account. Without sufficient funds, new positions cannot be opened.
Here some examples about it:
Basic information
Pro Trader
- The opening margin of pro trader:15
- The available asset of pro trader:50
- The unrealized P&L of pro trader:10
Follower
- Copytrading account asset:50
CopyTrading information
- Symbol:SOL
- Min trade amount:1 SOL
- Last price:188
- Leverage:20
***Formula:The opening ratio of pro trader = [ The opening margin of pro trader / (The available asset of pro trader + The unrealized P&L of pro trader)]*100%
Analysis of changes in pro trader's asset
The pro trader did not transfer assets to copytrading account
The opening ratio of pro trader =[ 15 / (50+10) ] * 100% = 25%
The required asset of the followers = the followers' asset * The opening ratio of pro trader=50 * 25% = 12.5 USDT
The value of the position = The required asset of the followers * leverage = 12.5 * 20 = 250 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵The value of the position 250 USDT > Min Position value 188 USDT
∴The follower succeeds in following 1 SOL
The Pro Trader transfers 20 USDT to copytrading account
Now, the pro trader has 50+20=70 USDT as available asset
The opening ratio of pro trader = [ 15 / (50+10+20) ] * 100% = 18.75%
The required asset of the followers = the followers' asset * The opening ratio of pro trader
=50 * 18.75% = 9.375 USDT
The value of the position = The required asset of the followers * leverage =9.375 * 20 = 187.5 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵The value of the position 188 USDT < Min Position value 188 USDT
∴Then, the follower failed to copy this trade
The Pro Trader transfers 15 USDT to spot account from copytrading account
Now, the pro trader has 50 - 15 = 35 USDT as available asset
The opening ratio of pro trader = [ 15 / (50+10-15) ] * 100% = 33.33%
The required asset of the followers = the followers' asset * The opening ratio of pro trader
=50 * 33.33% = 16.665 USDT
The value of the position = The required asset of the followers * leverage =16.665 * 20 = 333.3 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵ Copy 2 SOL required 376 USDT > The value of the position 333.33 USDT > Min Position value 188 USDT
∴ Then, the follower failed to copy 2 SOL, but succeeds in following 1 SOL
Analysis of changes in leverage before and by pro trader.
The pro trader did not change adjust leverage
The opening ratio of pro trader = [ 15 / (50+10) ] * 100% = 25%
The required asset of the followers = the followers' asset * The opening ratio of pro trader
= 50 * 25% = 12.5 USDT
The value of the position = The required asset of the followers * leverage = 12.5 * 20 = 250 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵The value of the position 250 USDT > Min Position value 188 USDT
∴The follower succeeds in following 1 SOL
The pro trader increased the leverages to 50x
Assume, the opening margin of pro trader is 5 USDT
The opening ratio of pro trader = [ 5 / (50+10) ] * 100% = 8.33%
The required asset of the followers = the followers' asset * The opening ratio of pro trader
= 50 * 8.33% = 4.165 USDT
The value of the position = The required asset of the followers * leverage = 4.165 * 50 = 208.25 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵The value of the position 208.25 USDT > Min Position value 188 USDT
∴The follower succeeds in following 1 SOL
The pro trader decreased the leverages to 3x
Assume, the opening margin of pro trader is 60 USDT
The opening ratio of pro trader = [ 60 / (50+10) ] * 100% = 100%
The required asset of the followers = the followers' asset * The opening ratio of pro trader
= 50 * 100% = 50 USDT
The value of the position = The required asset of the followers * leverage = 50 * 3 = 150 USDT
Min Position value = entry price * Min trade amount = 188 * 1 = 188 USDT
∵The value of the position 150 USDT < Min Position value 188 USDT
∴Then, the follower failed to copy this trade
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Order Limits Reached
Each follower has a maximum order volume they can copy. Once this limit is reached, additional orders will not be executed.
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Minimum Copy Amount Not Met
Orders below the minimum copy threshold will fail to execute. Ensure your order size meets the platform's minimum requirements.
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Maximum Total Investment
If a follower’s total margin invested across all positions reaches the platform's maximum allowed, new positions will be paused until some are closed.
3. Futures Trading Restrictions
Certain restrictions apply specifically to futures trading. These may lead to copy trade failures:
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Order Size Below Minimum
Setting a low amount per order might result in an order quantity below the platform’s minimum, preventing execution.
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Zero-Slippage Copy Trading Issues
When "Zero-Slippage Copy Trading" is enabled, insufficient market liquidity or rejection by market makers may block the execution of trades.
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High Market Volatility
During periods of extreme volatility, slippage may exceed the allowable range, causing trades to fail.
Our dedicated support team is here to help you navigate any challenges. If you encounter issues or have questions, don’t hesitate to reach out. We’re committed to ensuring your copy trading journey is as smooth and successful as possible.
Happy Trading!
Team Toobit