Proportional Copy Trading Explained

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Proportional copy trading is an innovative approach to mirroring trades, allowing users to dynamically adjust their position sizes relative to a trader's strategy. Unlike fixed-margin copying, this method enhances flexibility and risk management.

Core Concepts of Proportional Copy Trading

  1. How It Works

    • Each copied trade's value = Trader's order value × User-defined multiplier
    • Example: If a trader opens a $10,000 position and your multiplier is 0.1, your copied position will be $1,000.
    • Benefits:
      ✅ Matches trader's strategy more closely
      ✅ Adapts to varying market conditions
      ✅ Aligns overall profitability with the trader's performance
  2. Key Features

    • Multiplier Range: 0.01–10x
    • Max Follow Amount: $20–$30,000 (stops copying when margin reaches this limit)
    • Leverage: Inherits your contract trading settings

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Step-by-Step Guide to Proportional Copy Trading

Web Platform Instructions

  1. Navigate: DiscoverCopy Trading
  2. Select a trader → Click Copy
  3. Configure:

    • Switch to Proportional Mode
    • Set multiplier (use Smart Recommended ratio)
    • Adjust max follow amount, position mode, and leverage
  4. Set Take Profit/Stop Loss:

    • Max TP: 150%
    • Max SL: 75%
    • Example: 10% SL triggers auto-liquidation when losses exceed 10% of position value

Mobile App Instructions

  1. Path: DiscoverCopy Trading
  2. Follow steps similar to web platform

Smart Recommended Multiplier System

This safety feature calculates optimal multipliers based on:

Calculation Formula:

Max Recommended = min(Your USDT Equity, Max Follow Amount) / Trader's USDT Equity  
Min Recommended = 0.5 × Max Recommended  

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Frequently Asked Questions

Q: How does proportional copying differ from fixed-amount copying?
A: Proportional copying adjusts position sizes based on the trader's activity, while fixed-amount uses consistent values per trade.

Q: What happens if my multiplier is too high?
A: Excessive multipliers increase leverage risk and potential liquidation. Always use the Smart Recommended range.

Q: Can I change my multiplier after starting?
A: Yes, you can adjust settings anytime, but changes only apply to new trades.

Q: How is take profit calculated in this mode?
A: TP triggers when profits reach your set percentage of the position value (e.g., 110% of $1,000 = $1,100).

Q: What if the trader's strategy changes dramatically?
A: Monitor performance regularly and adjust your multiplier or stop loss accordingly.

Q: Is there a minimum account balance required?
A: You need sufficient margin to cover your max follow amount and multiplier settings.