1. Explanation of Copy Trading Failure Situations
When a copy trading user places an order, it does not necessarily mean the user will successfully execute the trade; in other words, the copy trading user may not be able to buy the contract.
The specific reasons are as follows:
Insufficient copy trading margin, order amount less than the minimum opening amount, etc.;
When the lead trader’s order is pending and not fully executed, followers cannot copy the trade;
When market slippage exceeds the maximum slippage rule limit;
When the copy trading margin balance is below the minimum copy trading amount of 10 USDT, and there are 20 consecutive copy trading failures, the following will be canceled;
The platform currently supports an intelligent copy trading mode that allows following orders currently held by the lead trader. In custom copy trading mode, it is still not possible to directly follow orders currently held by the lead trader; followers can only automatically follow when the lead trader opens a new position;
If the copy trading price deviates from the lead trader’s price by 0.0500, the copy trade will not open a position;
Insufficient account funds;
No trading pair selected for the lead trader’s trades;
Copy trading margin exceeds the maximum copy trading amount set by the user;
The current copy trading quantity exceeds the maximum opening quantity allowed by the current leverage;
Copy trading nominal value is less than the minimum nominal value of the current trading pair;
For trading pairs that are closed for trading, automatic or manual closing of copy trades during the closed period will fail.
2. How to Avoid This Situation?
Ensure Sufficient Copy Trading Funds
Reason: Insufficient copy trading funds can easily cause the number of copy trading contracts to be less than 1.
Measures: 1. Calculate the required funds: Based on the lead trader’s funds and your set multiplier, calculate the minimum funds you need. For example, if the lead trader’s funds are 10,000 and your multiplier is 0.01, then your minimum copy trading funds should be greater than 100. 2. Set an appropriate multiplier: Choose a suitable copy trading multiplier based on your actual funds. For example, if your funds are limited, you can appropriately increase the copy trading multiplier to ensure the number of copy trading contracts is not less than 1.Use the Same Leverage as the Lead Trader
Reason: Different leverage levels lead to different risk and return ratios, which may cause followers to be unable to match positions when the lead trader operates.
Measures: Copy trading users should try to select the same leverage as the lead trader (note: intelligent copy trading uses the same leverage as the lead trader, while custom copy trading requires users to set it manually) to maintain consistent risk and return ratios.Follow the Trader’s Choice of Margin Mode
Reason: Different margin modes affect fund management and risk control differently. If the copy trading user chooses a different mode, risks may be inconsistent.
Measures: Copy trading users should select the same margin mode as the lead trader to ensure consistent risk management.Reserve Sufficient Margin
Reason: When the lead trader adds to a position, the copy trading user may be unable to follow due to insufficient margin.
Measures: Copy trading users should reserve sufficient margin to be able to follow promptly when the lead trader adds to a position.For Users with Large Capital, Prefer Using Fixed Multiplier Copy Trading
Reason: Copy trading based on total asset proportion is influenced by multiple variables, and during major market movements, interactions among variables may cause copy trading failures.
Measures: Choose fixed multiplier copy trading to ensure copy trading stability.
By following the above measures, copy trading users can more effectively avoid copy trading failures and ensure a higher success rate for copy trading operations.