In this article, we have collected frequently asked questions about copying futures strategies. It will be useful for both traders and subscribers.
This article contains the following sections:
Supported exchanges and trading modes
You can find more info about the supported exchanges and trading modes in the following article: https://intercom.help/coinmatics-kb/en/articles/7010880-trading-types-supported-on-coinmatics.
Copying opening/closing of positions
Copy trading works for both opening and closing positions of Futures strategies (USDⓈ-M Futures and COIN-M Futures on Binance, USDT Perpetual Futures on Bybit). The platform also allows to copy the partial closing, decrease/increase of a position.
Direction and order type will be displayed on the strategy page.
Such positions as limit orders, stop loss and take profit will be copied as market once they are executed on the trader's account.
Section "Open Positions"
On the strategy page, you can see a list of open positions on the trader's account. Subscribers can compare them with the open positions on their exchange account.
Read more about open positions in this article: https://intercom.help/coinmatics-kb/en/articles/7021373-what-information-on-open-positions-is-provided-on-coinmatics.
Close/Decrease of position. On Bybit and Binance we calculate the order volume to the existing position when closing or decreasing the position. The direction (Long or Short) is not changed. Unless the trader has changed it.
In the above example, the open position was reduced by 80% of the involved position volume and then the Short position (trading pair BNB-USDT) was closed by 100% of the involved position balance.
Open/Increase of position. We calculate the ratio of the order to the balance when opening or increasing the position. The direction (Long or Short) is not changed. Unless the trader has changed it.
The example of this position shows that there was an increase in the position by 75.51% of the free balance of the Futures wallet.
On Binance and Bybit (One-Way mode), if the position direction changes (from Long to Short or vice versa), then the position is closed and the remaining order amount is calculated based on its ratio to the balance. These will be two separate operations in the Trade History.
A position reverse will also be displayed in the trading history. A reverse is a change in the direction of an open position, depending on market conditions.
During the reverse of a position, the position in one direction will be closed and a new position in the opposite direction will be opened. In the trade history this position will have the type "Reverse".
On Bybit (Hedge Mode), opening a position in a different direction (Long or Short) does not close the previously opened position. Since you are trading in hedge mode, there can be two positions with different position order (Long and Short).
The platform copies the leverage on the subscriber account, and it also copies the leverage change for open positions. The change is not copied instantly on the subscriber's account, but when the position is updated.
We do not recommend trading with large leverage – x5 or x10 is a good option that most subscribers will appreciate.
The orders are copied proportionally. When the trader makes an order for 10% of the total balance or position balance — our system will take 10% of subscriber's total balance or position balance to place the same order. The percentage of margin involved must be the same for a trader and an subscriber.
Liquidation occurs when a subscriber or trader is unable to meet margin requirements on a leveraged position. In the case of liquidation, there will be a forced close of the position.
Coinmatics supports only the isolated margin mode on the Binance exchange. On Bybit both margin modes are supported (cross and isolated).
So if the position is opened in the Isolated margin mode, liquidation occurs only at the costs of the funds involved in the position. In other words, you lose only margin on the position.
If the position is opened in the cross margin mode (on Bybit only) then the liquidation occurs not only at the cost of the funds involved in the position, but at the cost of the required amount from the free balance on the Futures wallet.
“Cash Flow" section
It displays all operations on the trader's exchange account that are not related to trading (such as deposits and withdrawals, transfers between wallets, referral bonuses of an exchange, etc.). In other words, the operations that are not taken into account by the platform when calculating the strategy's profit and showing trading results. All operations that decrease the strategy balance are in red color, and all operations that increase the balance are in green. The amount and time of each operation are also displayed.
Cash Flow will help to understand which movements on the trader's exchange balance are caused by trading, and which are caused by other operations on it.
Reason of failed positions
You can read more about the reasons why positions are not copied in this article: https://intercom.help/coinmatics-kb/en/articles/7018958-how-to-check-and-fix-copy-trading-errors.
There are several main reasons for failed positions:
Open positions of a strategy at the moment of subscription;
Open positions on the subscriber's account;
Futures account settings (Binance);
Strategy activity (in other words, when was the last position on the trader's account);
Trading in unsupported modes. The last point is checked by Coinmatics support team.
If you have any questions about this article, please contact Coinmatics support team at [email protected].