Copy trading
Copy-trading allocation and position sizing
A copy allocation sets the capital assigned to a strategy; position sizing translates that allocation and portfolio weights into target exposure under risk limits. Allocation is not the same as notional exposure, and a twenty-percent portfolio weight does not necessarily mean twenty percent of total market risk.
Distinguish capital from exposure
Capital is the account value assigned to the strategy. Notional is the money value of the positions it controls. Hypothetical example: $1,000 of allocated capital at two times effective gross exposure corresponds to roughly $2,000 of position notional, before execution details. A one-percent adverse move across that directional exposure would be about $20 before costs.
A leverage setting on one position does not describe the whole account. Unused cash, offsetting positions and other subscriptions can change effective account exposure. Review the combined book as well as each subscription.
Weights allocate a strategy, not certainty
Hypothetical example: a portfolio assigns sixty percent to leader A and forty percent to leader B. With $1,000 committed, the model assigns $600 and $400 of strategy capital. If A takes substantially more exposure than B, A can contribute much more than sixty percent of the portfolio’s risk.
Review how cash and inactive leaders are handled. If a leader has no supported position, a portfolio may keep that share in cash rather than automatically redistribute it. Read the current portfolio method before assuming that all committed capital is always deployed.
Small accounts face execution constraints
Minimum notional, size precision and market-specific limits can prevent very small target trades. Rounding each trade can create a meaningful difference when many positions share a small allocation. A follower can also hit margin limits even when its requested strategy allocation looks sufficient on paper.
A hypothetical $10 slice across ten markets is not equivalent to a $10,000 slice scaled perfectly. Review the product’s minimum-capital and market-eligibility information. Do not increase allocation just to clear a constraint without reassessing the possible loss.
Size from a loss budget and monitor the result
Choose capital and caps together. Consider concentration, gross exposure, loss tolerance and how the account behaves if several leaders lose simultaneously. The engine’s confirmed positions are the realised result of the sizing rules; a model preview is only a preview. After activation, compare actual exposure with the intended allocation and investigate skipped or constrained trades.
- Set committed capital and exposure caps separately.
- Inspect total account exposure across subscriptions.
- Allow for minimum sizes and rounding.
- Reassess sizing after deposits, withdrawals or portfolio updates.