Why Do I See a New Open Trade in My Account When the Strategy Provider Didn’t Open Any New Trades?

This is most likely because the strategy provider made a withdrawal from their account.

Copy-trading uses the Equity-to-Equity model to define the volume of all open trades. When a provider withdraws funds, the system will automatically recalculate the volume of all open trades based on the new equity.

Example:

1. Initial Situation:

   • Strategy Provider’s equity: 4,000 EUR
   • Follower’s equity: 1,000 EUR
   • Provider opens a trade of 400,000 units (4 lots) on EUR/USD.
   • The copied trade volume is:
     • (1,000 / 4,000) * 400,000 = 100,000 units (1 lot)

2. Withdrawal by Strategy Provider:

   • Strategy Provider withdraws 2,000 EUR, reducing their equity to 2,000 EUR.

3. Recalculation of Trade Volume:

   • New equity ratio:
     • (1,000 / 2,000) * 400,000 = 200,000 units (2 lots)

4. Automatic Adjustment:

   • Initially, the copied trade volume was 100,000 units.
   • To adjust to the new ratio, the system needs the total volume on EUR/USD to be 200,000 units.
   • Therefore, an additional trade of 100,000 units (1 lot) will be opened.

When the Strategy Provider withdraws funds, it changes the equity ratio. To maintain the Equity-to-Equity logic, the system automatically recalculates and adjusts the trade volumes. This recalculation can result in new trades being opened in your account to match the new equity ratio.