How it work
In ALGOGENE Marketplace, you can subscribe various strategies, and decide how the signal volume is scaled while being copied to your trading account.
The following scaling modes are currently supported:
- Scaled by Equity Ratio (default)
- Fixed Lot
- Multiple of Equity Ratio
What are the difference?
(A) Scaled by Equity Ratio
It is the default system setting. The trade volume is scaled according to balance so that trade risk on the subscriber's account is the same as that of the master account.
For example, you subscribed strategy A and trade for a broker account with US$2,000 deposit. On the other hand, strategy A's account is trading at US$10,000 balance.
Investor’s equity / Strategy equity = 2000/10000 = 0.2
It means that every position opened on your account will be 0.2x the size of the position opened from strategy A.
(B) Fixed Lot
It sets to trade at a fixed lot size for all signals received.
(C) Multiple of Equity Ratio
It trades at a muliple of the Equity Ratio Scaling.
Using the same example above, the default equity ratio scale is 0.2. Suppose you now set a multiplier of 3. Then, every position opened on your account will be 0.2*3 = 0.6x the size of position opened from the master strategy.
How to configurate?
In case you want to override the default behaviour, you can specify the setting as follows:
- login ALGOGENE portal
- go to [Settings] > [Algo Market]
- Under the section "My Subscribed Algo Strategy", locate your subscribed algo then click "Config copy trade"
- Override the current setting and click "Update".
- After that, the new trade size scaling will apply to subsequent signals received.
- Updating the trade size will have no effect to previously executed orders. Before applying the new scaling, you may consider to close all oustanding positions first.
- Adjusting the trade size may scale up your profit, but it can also magnify the potential loss. Please act and trade responsibly at your own risk!