> For the complete documentation index, see [llms.txt](https://docs.dextrabot.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dextrabot.com/copy-trade/methodology/method-3-mirror.md). # Method 3 (Mirror) ### Introduction Method 3 (Mirror) is a copy trading strategy offered by Dextrabot that enables proportional risk allocation based on relative wallet sizes. This document outlines the key implementation details and important edge cases when using Mirror mode.
Method 3
### Key Parameters #### Scaling Parameter The scaling value that determines your risk exposure relative to the source trader. **Values:** * **100**: Mirror exact same risk (1:1 ratio) * **50**: Half the risk exposure of source trader * **200**: Double the risk exposure of source trader **Example**: If scaling is set to 100 and source trader risks 5% of their equity, you will also risk 5% of your equity. **Calculation**: Your position size = (Source Position / Source Equity) × Your Equity × (Scaling / 100) ### Configuration Options #### Copy Current **Toggle**: On/Off\ **Function**: Allows copying existing open positions from source traders when you start following them #### Copy Increase as Open Position **Toggle**: On/Off\ **Function**: When enabled, treats each position increase as if opening a new position. #### Stop Loss & Take Profit **Format**: Percentage-based automatic exit levels\ **Application**: Applied to all positions opened using Method 3\ **Execution**: Automatically triggered when specified profit/loss thresholds are reached #### Include TWAP Orders **Toggle**: Off/On\ **Function**: Enables copying of Time-Weighted Average Price (TWAP) orders from source traders #### Direction Filter **Toggle:** On/Off\ **Function:** Controls which trade directions are copied from source traders, allowing you to filter trades based on whether they are long or short positions. #### Future Listed Tokens **Toggle**: On/Off\ **Function**: Enables automatic copying of trades on newly listed tokens #### Asset Management **Include**: Specify which tokens to copy from available list\ **Exclude**: Define tokens to avoid copying\ **Selection**: Use dropdown to manage included/excluded assets #### Tag & Run **Tag**: Label for organizing trading strategies\ **Run**: Toggle to activate/deactivate this Method 3 configuration ### How Mirror Mode Works Mirror mode uses a scaling parameter to determine the proportion of trade size relative to account equity. The system calculates position sizes by comparing the equity ratios between the source trader and follower wallets. #### How Increase Works When the source wallet increases a position, the system calculates the proportional increase for the follower wallet based on: * The size of the increase relative to the source wallet's equity * The follower wallet's equity * The scaling parameter The system ensures that increases maintain the same risk proportion as the initial position. #### How Decrease Works When the source wallet decreases a position, the follower position decreases by the same percentage as the source position. For example: * If the source wallet decreases its position by 10%, the follower wallet will also decrease by 10% * This ensures that position sizing remains proportional throughout the trade lifecycle #### What is Copy Current? Copy Current is a feature that allows a follower to start mirroring an existing position of the source wallet. When activated, the system calculates the appropriate position size based on: * The current source position * The equity ratio between source and follower wallets * The scaling parameter This allows followers to join trades that are already in progress while maintaining proportional risk. > **Important Note**: You can use mirror method on more than one wallet at the same time, however, in that case closely monitor the equity ratio. ### Basic Scenarios: Mirror mode calculates position sizes using this formula: ``` Follower Position Size = (Source Position / Source Equity) × Follower Equity × Scaling ```

Method 3 (Mirror) Scenarios

### Critical Cases When Changing Scaling Parameter #### Case 1: Existing Positions After Scaling Change When a user changes the scaling parameter while positions are still open: * All existing open positions will continue to use the previous scaling ratio until they are fully closed * The system maintains position tracking based on the scaling parameter that was active when the position was initially opened * This ensures consistency in risk management for already established trades #### Case 2: New Positions After Scaling Change After modifying the scaling parameter: * Any new positions opened by the source trader will be copied using the new scaling ratio * The system calculates position sizes based on the current scaling setting * This allows for immediate implementation of the user's updated risk preferences #### Case 3: Direction Change After Scaling Modification If the source trader changes position direction (e.g., from long to short) after a scaling change: * The follower system first closes the existing long position completely * Then opens a new short position using the new scaling ratio * Important detail: In direction change scenarios, the operation happens in a single transaction - the system opens a short position of size equal to (long position size + new short position size) * This ensures proper tracking and maintains the desired risk profile ### Critical Cases When Source Wallet Equity Changes In Dextrabot’s Copy Trading System, follower wallets dynamically adjust their positions in real-time based on the source wallet's **updated Perp Equity** and **latest position size**. **📌 Equity-Based Dynamic Recalculation** Whenever the source wallet: * receives a deposit or withdrawal, changing its Perp Equity * or modifies the size of an open position (increase/decrease) → the follower wallet **recalculates** the size of its currently open position for that specific token. This recalculation is based on the **new ratio** between the follower's current equity and the updated Perp Equity of the source wallet. **🔁 Position Rebalancing Behavior** * If the follower’s current position **no longer matches the updated ratio**, it will be **adjusted accordingly**. * This can result in: * **an increase**, if the new calculated size is larger than the current size * **a decrease**, even if the source wallet increased the position, if the new ratio yields a smaller size This ensures that follower wallets are always aligned with the latest position structure of the source wallet—not just in direction, but in proportional exposure as well. **✅ Why It Matters** This dynamic adjustment allows Dextrabot to maintain consistent risk mirroring even when traders make equity-altering moves. It also helps avoid overexposure or lagging positions due to outdated ratios. ### Implementation Notes 1. The system always prioritizes consistent tracking of existing positions 2. Changes to scaling or equity only affect future trades or direction changes 3. For multi-token portfolios, each token is tracked independently 4. The follower wallet will only track one trader per token at a time --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.dextrabot.com/copy-trade/methodology/method-3-mirror.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.