Method 1
Introduction
Method 1 is Dextrabot's copy trading strategy that uses percentage-based allocation for initial positions combined with fixed dollar limits for position increases. This method provides controlled risk exposure while allowing you to scale with your source trader's moves.
How Method 1 Works
Method 1 calculates your initial position size as a percentage of the source trader's margin usage, then manages any subsequent position increases through a separate fixed dollar allocation. This dual-parameter approach gives you proportional exposure to the trader's initial moves while maintaining strict control over additional risk.
Key Parameters
Use % of Trader Margin per Position
Used Rate: The percentage of the source trader's margin that will be allocated to your position.
Example: If set to 10% and the source trader uses $20,000 margin, your position will use $2,000 margin.
Margin Increase Limit
Increase Limit: Fixed dollar amount available for position increases after the initial position is opened.
Example: If set to $1,500, you can add up to $1,500 total through subsequent increases, regardless of how much the source trader adds.
Configuration Options
Initial Margin Cap
Sets a maximum limit for your initial position size, acting as a safety cap even when the percentage calculation would result in a larger amount.
Function: Prevents oversized initial positions regardless of source trader's position size.
Copy Increase as Open Position
Toggle: On/Off Function: When enabled, treats each position increase as if opening a new position, applying different sizing logic to increases.
Copy Current
Toggle: On/Off Function: Allows copying existing open positions from source traders when you start following them.
Include TWAP Orders
Toggle: On/Off Function: Enables copying of Time-Weighted Average Price (TWAP) orders from source traders
Stop Loss & Take Profit
Format: Percentage-based automatic exit levels Application: Applied to all positions opened using Method 1
Future Listed Tokens
Toggle: On/Off Function: Enables automatic copying of trades on newly listed tokens Risk Note: New tokens may have higher volatility
Asset Management
Include: Tokens available for copying
Exclude: Tokens to avoid copying Selection: Manage which assets to include or exclude
Tag & Run
Tag: Label for organizing trading strategies Run: Toggle to activate/deactivate this Method 1 configuration
Practical Example
📌 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.
🔹 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
When the trader reduces their position, your system checks if the trader's new position size is still above your maximum allowed limit.
If trader's position is still above your maximum limit: No action is taken - you maintain your current position.
If trader's position drops below your current position: Your position is reduced to exactly match the trader's new position size (not proportionally, but to the exact same amount).
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 System Rules
Token Exclusivity
Only one trader per token can be followed at a time. If multiple traders trade the same token, the system follows the first trader until their position is completely closed.
Example: If Trader A opens BTC LONG and Trader B opens BTC SHORT, only Trader A's position is followed until closed.
Direction Changes
When a source trader closes a position and opens the opposite direction:
Your existing position closes completely
New position opens using percentage calculation
Increase limit resets to full availability
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