Copytrading is a service that broadcasts in real time the trader’s operations directly from the exchange and allows users to automatically copy trading orders in equal proportions of the total trading balance.
Master is a channel managing trader who trades on his own exchange account.
The service is available on 2 exchanges: Binance, Binance Futures
If the Binance Spot Exchange is enabled, futures trading will not count. If the Binance Futures exchange is enabled, only trading on USDT perpetual futures will be counted. Trades on other types of futures and spot will not be counted.
Before launching the channel, you need to set the basic parameters:
- Main currency,
- Minimum balance,
- Deviation from min. balance
- Trading Mode (One-Way/Hedge)
You can choose only one main currency (BTC/USDT/ETH) which will be traded on one account connected for copy trading. Orders to other main coins won’t be used by system for copy trading.
The minimum balance is required to avoid the following situation: the user’s order is less than the minimum lot on the exchange in the traded currency. It is calculated based on the total trading balance on the master’s account and the planned minimum order amount (including additional purchase and averaging). The user’s balance should be enough to create an order; the doubled minimum lot is taken for calculation.
Minimum balance calculation:
- 2,000 USDT — the total balance on the master’s account. (all the coins on the balance are taken into account and the total balance is considered in the equivalent of the main coin, in this case USDT)
- 100 USDT — the minimum amount of one order, which the master plans to place
- 10 USDT — minimum lot size on Binance (spot)
The formula for calculating the size of 1 order in proportion to the total balance:
Min. master’s order / master’s total balance
The formula for calculating the total minimum balance:
Min exchange lot size * 2 / size of 1 order
100 USDT * 100% /2,000 = 5% (size of 1 order)
(10 USDT * 2) / 5% = 400 USDT (min balance). Please make corrections to the potential balance drawdown (we count the maximum drawdown of 20%).
The minimum balance is specified in the user settings of the channel, preventing the connection of exchange accounts with insufficient funds.
Copytrading system does not support the hedge mode (two-sides trading mode), therefore, it is necessary to switch trading to «one-side mode» in the settings on the exchange in order to avoid errors.
Users undertake to connect «clean» exchange accounts, which do not conduct manual or automated trading except the copytrading of the connected channel. A separate account must be connected for each channel.
Channel setup and launch
Management is carried out in the Manage channel section
There are 2 sections: Positions and Control.
To launch the channel, you need to choose Control section and connect the API key of the exchange account where trading will be carried out.
Attention! When the API key is connected, the channel will be automatically launched and the broadcasting will begin.
It is necessary to monitor the functionality of the key to avoid losing the connection. If the API key has become inactive, it must be urgently reissued and replaced by clicking the Change key button.
Setting of an available channel for users
After launch, the channel is in hidden mode for collecting statistics and testing. The channel is visible only to the owner and administrators. To release the channel to the public, you need to contact the manager and enable the public access mode.
All trading operations performed on the account are broadcast to the channel and collected in Positions. One position is equal to all orders for one currency pair for the entire trading period since the start of copytrading in the terminal.
The position is divided into 2 parts:
- Positions set (all buy or open orders)
- Positions reduse (all sell or close orders)
General data is displayed at the top of the position:
- total number of the coins set in a position
- total amount in a main currency
- current balance in a main currency
- average open price
- number of orders to be open
- total profit in percentage and in physical term
Each close order has a profit, which is calculated as the difference between the Average Open Price and the Close Price of this order.
The total profit is calculated as the weighted average of the profits of all orders to be closed.
The progress of completion is displayed for each position. A position is considered closed if the total amount of open orders matches the total amount of close orders.
Copying orders on user accounts
After the user connects to the channel, the system filters open and close orders, and duplicates only orders for opening new positions on the user’s account in order to avoid selling coins that have not yet been purchased by the user. Thus, the positions for new open orders are created on the account, and the master can continue to reduce and close previously opened positions.
The order is created in equal proportions, where the total balance of the user account and the balance of the master account are taken as 100%. The calculation involves the entire account balance in the equivalent of the main coin, and not just the amount of this coin on the balance.
In the user’s personal statistics, all orders are set in positions, similarly to those of the master.
When trading on the Binance Futures exchange, the user’s orders are open with the same leverage as the master’s ones.
Displaying public channel statistics
Users have access to the Trades profits chart, which displays the cumulative profit for each day for the entire trading period.
A list of trades on the channel is also available to users; it is displayed with a 24-hour delay.
Orders set in positions are not available for the public access, since different users may have a different number of positions.
Displaying statistics on channel purchases
A list of all purchases can be found in the Manage channel section, in the Control tab
The following information is available:
- The total number of sales;
- Number of active subscribers;
- The total amount of sales;
A table with a list of all subscribers is also available. It contains:
- List of subscribers with their user ID in the system;
- Date of purchase;
- Subscription period;
- Subscription cost.