One important principle in copy trading is that the copy trading account must perfectly replicate all the signal’s trading operations without missing a single trade.
You never know if the one trade you missed might be the key to the entire strategy. Missing trades not only risks tracking errors, reducing potential returns, but could also turn a profitable strategy into a loss.
Can’t Copy the Trades? Two Common Reasons
Every copy trading system faces two common problems: minimum lot size and maximum position size.
Let’s use the common Martingale strategy in forex trading as an example. Assume there’s a Martingale strategy with a $10,000 balance, and the signal strategy’s minimum order size is a mini-lot of 0.01, while the maximum position size could grow to 6 lots due to continuous growth.
Two issues arise here:
First, if the copier’s account balance is only $1,000, to achieve the same return rate, the copier’s account should place a tenth of the signal order size, which is 0.001 lots. However, 0.01 mini-lots is already the smallest available unit. The system will determine that the trade cannot be copied.
Secondly, if the copier has a balance of $10,000 and chooses to set the signal multiplier (Multiplier) to 10 for higher returns and risks, then when the signal strategy places a total of 6 lots, the copier should place 60 lots. However, $10,000 is insufficient to cover the margin required for 60 lots. This results in a failed order, missing out on potential profits.
Both issues stem from the copier not having enough funds. But how much is enough? Does the copy trading account always need to have more funds than the signal account? If multiple accounts are copied simultaneously, how should the balance be calculated?
“Suggested Minimum Balance” Solves Copy Trading Issues!
To address real user problems, Tradingcup has introduced the “Suggested Minimum Balance” feature.
Whether it’s the minimum lot size or maximum position, as long as the copier has sufficient funds, perfect copy trading can be achieved. Thus, when calculating the “Suggested Minimum Balance,” it needs to meet both the minimum lot size and maximum position size requirements.
The Suggested Minimum Balance is automatically adjusted based on the signal account’s minimum lot size and maximum position size.
For example, if a signal account with $1,000 has a minimum lot size of 0.01, the copier account’s Suggested Minimum Balance should also be at least $1,000 to ensure the smallest 0.01 order can be copied. If the signal’s minimum lot size is 0.02, the Suggested Balance needs to be at least $500, or half of the signal’s balance, to allow copying the minimum 0.01 lot.
At the same time, if the copier increases the signal multiplier for higher returns, the original balance may not meet the maximum position size. Depending on the size of the multiplier, the system will adjust the Suggested Minimum Balance accordingly to meet the maximum position size requirements.
As long as the balance in your copy trading account reaches the Suggested Minimum Balance shown in the chart, you can ensure that, in most cases, you will perfectly track all signals. In the signal list, you can also find the required balance for each signal individually. The “Suggested Minimum Balance” in the top-left corner is a combined figure of all required balances.
Of course, the Suggested Minimum Balance is a minimum recommended amount calculated to ensure perfect copy trading. Copiers can choose a higher or lower balance based on their own situation. However, a lower balance may increase the risk of not being able to copy all the signal’s trades.
