Skip to content

Maximum trade risk#

Overview#

In CopyFactory you can optionally limit maximum risk of a copied trade (e.g. set each trade copied from a strategy to risk no more than 1% of subscriber balance).

Risk limit it is applied according to the following algorithm:

  • if trade on the master account has a stop loss, then lot size will be reduced (if needed) so that total trade risk does not exceed the specified risk limit
  • if trade on the master account has no stop loss, then a stop loss will be assigned to a trade on a subscriber account, so that the risk does not exceed the specified risk limit

By default CopyFactory will not apply a risk limit. However, if you want to override this behaviour then you can specify an optional maxTradeRisk setting. This setting can be specified on any of the following entities:

  • strategy
  • member of a portfolio strategy
  • portfolio strategy
  • subscription

This setting is overridable. This means that CopyFactory will apply the setting which comes latest in the subscription chain (e.g. setting on a subscription will override all strategy/portfolio settings).

Example (strategy)#

{
  "name": "Strategy",
  ...
  "maxTradeRisk": 0.01,
  ...
}

Example (member of a portfolio strategy)#

{
  "name": "Portfolio strategy",
  ...
  "members": [
    {
      ...
      "maxTradeRisk": 0.01,
      ...
    },
    ...
  ],
  ...
}

Example (portfolio strategy)#

{
  "name": "Portfolio strategy",
  ...
  "maxTradeRisk": 0.01,
  ...
}

Example (subscription)#

{
  "name": "Account",
  ...
  "subscriptions": [
    {
      ...
      "maxTradeRisk": 0.01,
      ...
    },
    ...
  ],
  ...
}