At Trading Cup Copy Trading, our focus is on empowering users to manage their risks while providing the opportunity to access larger potential gains. Today, we’re excited to introduce the new Signal Multiplier feature, which will bring unprecedented flexibility to your copy trading experience.
What is the Signal Multiplier?
The Signal Multiplier allows traders to adjust their trade volume based on the signals provided, giving them the flexibility to take on more or less risk.
For example, if the signal provider suggests 0.01 lots of EURUSD for a $1,000 account using conservative risk settings, you can choose to increase the trade size to 0.02 lots or more, depending on your risk tolerance.
This feature empowers you to modify the original signal to better suit your trading style and goals.
The screenshot below shows the Multiplier option for each signal you are following.
Before you start copying trades, it’s important to consider the difference in funds between your account and the signal provider’s account. For example, let’s say you have $5,000, and the signal provider you are copying has $1,000. This creates a funds proportion of 5:1. In this case, your trade size will automatically be five times larger than the signal provider’s, assuming all other factors are equal. So, if the signal provider places a trade of 0.01 lots, your account will place a trade of 0.05 lots to match that proportion.
Once you’ve understood the funds proportion, you can further customise your trade size using the Signal Multiplier.
For example:
- If your Signal Multiplier is set to 1, the Trade Size Ratio will match the funds proportion.
- If your Signal Multiplier is set to 2, the Trade Size Ratio will be double the funds proportion (i.e., 5 * 2 = 10).
- Conversely, if you set the Signal Multiplier to 0.5, the Trade Size Ratio will be half the funds proportion (i.e., 5 * 0.5 = 2.5).
Why use the Signal Multiplier?
- Personalized Risk Management: Every trader has a different risk tolerance. By adjusting the Signal Multiplier, you can tailor the Trade Size Ratio to your risk preferences.
- Flexible Fund Allocation: You can set a higher Signal Multiplier for signals you have more confidence in or set a lower multiplier for signals you wish to handle more cautiously.
- Adapting to Market Changes: As market conditions shift, you can easily adjust your Trade Size Ratio without stopping your copy trading.
How to use the Signal Multiplier?
1. Log into your account, then click on “Subscription & Billing” to access the subscription page.
2. Find the signal provider you want to adjust.
3. Enter your desired Signal Multiplier in the input field, with values ranging from 0.01 to 500.
4. Confirm and save your settings.
How does the Signal Multiplier affect the copier’s potential risk?
- The Signal Multiplier will change the Trade Size Ratio and the risk the copier takes on. The risk associated with each signal will be proportionally increased or decreased based on the Signal Multiplier. For example, if Signal 1’s maximum drawdown is 10% and the copier sets the Signal Multiplier to 2, then the copier’s risk will be doubled to 20%. Similarly, if Signal 2’s maximum drawdown is 20% and the Signal Multiplier is 0.5, the copier’s risk will be reduced to 10%.
- To assess the copier’s overall risk, the highest risk value from all copied signals will be used as the copier’s total risk.
Here’s a table illustrating the estimated maximum drawdown for the copier’s account:
| Copier | Signal 1 | Signal 2 | Signal 3 |
| Multiplier | *2 | *0.5 | *1 |
| Max Drawdown | 10% | 20% | 30% |
| Risk | 20% | 10% | 30% |
The copier’s total risk is the highest value from all signals, which is 30%.
Please note:
- If you are copying multiple signals from the same trader or using the same strategy, the portfolio will lose its risk diversification, and the actual risk could be higher than shown in the “Risk” column.
- The risk value could exceed 100%. When it does, the numeric value displayed will reflect the true risk, and the Signal Multiplier that caused the risk to exceed 100% will be highlighted in red.
When should you adjust the Signal Multiplier?
- Increased Market Volatility: When the market becomes more unstable, you might want to lower the multiplier to reduce risk.
- Increased Confidence in a Signal: If a signal performs particularly well, you might want to increase the Signal Multiplier for that signal.
- Changes in Available Funds: As your available funds increase or decrease, you may need to adjust the Signal Multiplier accordingly.
- Changes in Risk Appetite: As you gain more experience in trading, your risk tolerance might change. You can adjust the Signal Multiplier to reflect these changes.
Summary
The introduction of the Signal Multiplier is a result of listening to our users’ needs and creating a powerful tool that allows more precise control over copy trading. We understand that every trader has a unique trading style and risk tolerance. The Signal Multiplier helps users fine-tune their total trading risk to match their personal preferences.
Whether you want to increase your investment in signals you believe in or reduce risk in uncertain markets, the Signal Multiplier feature is here to serve your needs. We encourage you to try this new feature and discover the copy trading strategy that works best for you.
