There are two possible reasons for this:
-
Your Account Has Been Stopped Out:
- Your account may have been stopped out while the Strategy Provider’s account is not yet stopped out.
-
The Strategy Provider Deposited Additional Funds:
- When the Strategy Provider deposits additional funds into their trading account, the Equity-to-Equity model used in copy trading will automatically recalculate the volume of all open trades based on the new equity.
Example:
-
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.
- Copied trade volume:
- (1,000 / 4,000) * 400,000 = 100,000 units (1 lot)
-
Provider Deposits Additional Funds:
- Strategy Provider deposits 1,000 EUR more, increasing their equity to 5,000 EUR.
-
Recalculation of Trade Volume:
- New equity ratio:
- (1,000 / 5,000) * 400,000 = 80,000 units (0.8 lots)
- New equity ratio:
-
Automatic Adjustment:
- To meet the new Equity-to-Equity ratio, the system will partially close the existing trade by 20,000 units (0.2 lots).
This adjustment ensures that the Equity-to-Equity ratio is maintained, which may result in the partial closure of your trades even if the Strategy Provider has not closed any of their trades.
Comments
0 comments
Please sign in to leave a comment.