How to Use Copy Proportion in Headway Copytrade
Headway Copytrade offers many handy features that help investors customize their experience however they like. One of these features is the copy proportion. This article will explore what the copy proportion is and how to use it for your benefit.
What is the copy proportion?
Imagine that you have finally found a perfect strategy. The win ratio is awesome, the returns are really good, and the risk level is exactly what you can handle. However, the strategy owner places really large orders for your liking, and you’d rather trade smaller amounts. That’s when the copy proportion becomes useful.
The proportion is the ratio between your and the trader’s trading volume. For instance, if your proportion equals 2, your copied trades will be twice as big as the strategy owner’s.
How to choose a proportion
When you start copying a strategy, you are prompted to customize your account settings. At this point, you have the choice of selecting your proportion.
You can choose one of the preselected proportions or enter your own value from 0.1 to 1000. If you want to copy the strategy’s positions as is, choose the proportion of 1.0.
Why is copy proportion important?
The proportion is an essential parameter because it affects the volume of your positions. As a result, it also has an impact on the amount of your capital involved in each trade. The higher your proportion is, the more funds you put into each copied trade, so it will affect both your gains and potential losses.
For example, if your proportion is set to 1000, the volume of your trade will be 1000 times as big as the volume of the strategy owner’s position. So if the trader opens a position for 50 lots, your account will open a trade for 50,000 lots! Consequently, your potential profit and losses will be affected by this proportion as well.
How can copy proportion interfere with your trading?
While the copy proportion is certainly a useful tool, some of the trades may fail to copy on your account because of it. Here’s why this can happen:
- If your account doesn’t have enough funds to copy a trade in accordance with your proportion, it will not be copied.
- If the strategy owner opens a position with the minimum allowed volume and your copy proportion is less than 1.0, your account will not be able to copy it. The minimum volume for Cent and Standard accounts is 0.01 and 0.1 for the Pro account, so pay attention to this while customizing your proportion.
Should any trades fail to copy, you will get an email in your MetaTrader terminal. This will help you decide if you want to continue copying the strategy. To solve these issues, you can top up your balance or change your proportion in the strategy details.
Start your copytrading journey now!
Now that you know what a copy proportion is, you can customize your copytrading experience however you like. Choose a strategy to follow and try different proportions to see what you like. Start copytrading now →
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