⚛️Copy Trade Methodology

This document outlines the Copy Trade methodology used by Dextrabot, ensuring you understand how the system replicates trades, manages risk, and optimizes execution.

📌 How It Works

Dextrabot’s Copy Trade System allows users to automatically mirror the trades of selected traders. Understanding how trades are executed and adjusted based on the trader’s actions is crucial for efficient copy trading. Below, we break down the key trading actions and how they are managed in the Copy Trade system. 🛠 Copy Trading Strategies

Dextrabot's Copy Trade System offers two different strategies to manage your copy trading behavior, allowing users to customize their risk exposure and execution style.

📌 Method 1: Fixed Allocation with Initial Limits and Increase Limits

• Enter initial open position amount: 1000 USD

• Enter budget for increase: 500 USD

• How it works:

  • If the source wallet opens a position with 100,000 USD and later increases it by 200,000 USD,

  • Your copy trade will start with 1000 USD and can increase up to a total of 1500 USD, respecting your predefined budget for additional fills.

  • This method helps maintain controlled risk exposure while mirroring a trader’s moves dynamically.

  

  Dextrabot - Copy Trade Strategy Setup 1

📌 Method 2: Per Order and Position Limits (Coming Soon)

• Enter max per order: 50 USD

• Enter max per position: 1500 USD

• How it works:

  • The source wallet opens a position with 100,000 USD and then increases it by 200,000 USD.

  • In this strategy, there is no distinction between the initial position and increase/decreases.

  • Your copy trade will open an initial position with 50 USD and then increase it by another 50 USD with each increase from the trader.

  • To reach the 1500 USD max position limit, the source trader would need to increase their position at least 30 times.

  

  Dextrabot - Copy Trade Strategy Setup 2

These strategies give traders flexibility in managing their copy trades while ensuring proper risk control and capital allocation. 🚀

🔹 Key Actions Explained

1️⃣ Open Position

• When the copied trader opens a position, your system calculates your allowed size based on your defined percentage and margin cap.

• If within the limit, your system mirrors the trade.

2️⃣ Increase Position

• If the trader adds to their position, your system checks whether you still have margin available.

• If there’s enough margin left, your position is increased proportionally.

• If the limit is reached, no additional trades are executed.

3️⃣ Decrease Position

• If the trader reduces their position, your position is reduced accordingly.

4️⃣ Change Direction

• If the trader closes their existing position and opens an opposite trade (e.g., closing a long and opening a short), your system mirrors this by closing your existing trade and opening the new one based on your limits.

🔹 Important Notes

• If a copy trader opens a position for a specific token and your wallet successfully copies this trade, any additional traders attempting to trade the same token will be ignored. Your wallet will continue to follow the first trader's position on that token until they close it. Once the first trader exits the position, a different trader's position for the same token can then be copied if they initiate a new trade. For Example:

If Trader A opens a BTC LONG position with 5x leverage and a size of 1, and later Trader B opens a BTC SHORT position with a size of 0.5, the bot will continue tracking Trader A's position until it is fully closed. Only after Trader A exits the position will another trader's position on the same token be considered for copying.