Guide to Copy Trading for Followers

1. How to follow a trader in Copy Trading

Go to the "Copy Trading" page (Log in Huobi website >> Click "Futures" in the upper navigation menu >> Select "Copy Trading") b. Select a trader and click "Follow" c. Set the copy unit and tick "I have read and agree to the Copy Trading User Agreement" d. Click "Follow" to confirm the copy-trading

Note 1: Followers should read and accept the Copy Trading User Agreement.

Note 2: A follower can only follow one trader at a time.

 

2. Futures copy trading

2.1 How copy trading works

<1> With copy trading, a follower copies the trader's position changes. The copy trading amount (rounded down) = copy units ratio * position changes. If the amount is lower than the set copy unit (the minimum allowable amount) for copy trading, then the orders will not be copied.

<2> The follower's tradeable amount will then be calculated based on the follower's available fund and futures leverage. If the copy trading amount is ≤ the follower's tradeable amount, the copy trade will be made; or else the copy trade will fail.

<3> The follower copies all of the trader's positions until the funds are used up, regardless of the copy units, leverage, and position limit for a single order. When the trader reduces the position of a copy-trading contract, the follower will have their position reduced too and thus have more available funds.

2.2 Applicable futures products

At present, BTC and ETH futures contracts are available in copy trading.

 

3. Copy trading parameters

Profit-sharing ratio: The portion of profits that are shared with the copied trader by followers. This parameter is set by the trader and cannot be changed by the follower.

Leverage: The leverage for copy trading is set be the trader and copied by followers in their copy trades. The leverage can be adjusted later by followers.

4. How to unfollow a trader

Go to Copy Trading >> Followed Trader, and click the button "Unfollow". This action will end the current copy-trading relationship, and cause the current copy-trading positions to be closed at the market price and settled as per the trader's profit-sharing ratio.

 

5. Profit sharing

When all the copy-trading positions are closed, a portion of the net profits equal to the profit-sharing ratio will be frozen in advance and distributed to the trader after the settlement by 10:00 the next day. Net profits = total profits - total losses.

If the trader is unfollowed, the profit-sharing settlement will be conducted immediately. The remaining funds after the settlement will be returned to the follower's futures account. The trader's profit share will be credited by 10:00 the next day.

Profit-sharing ratio is set by the trader after enabling the Trader Mode and is not changeable.

Profit shared with the trader = net profits * profit-sharing ratio. If positive, the shared profit will be credited to the trader; if negative, the previously frozen funds will be returned to the follower's account.

 

6. How to view your profits

Followers can check the profit details of every copied trade via the Huobi app >> Futures >> a record icon in the lower right corner >> Capital Flow.

 

7. Important notes

<1>Once you have followed a trader, you cannot refollow this trader or follow other traders while your copy trades are being executed. You can follow the same trader after your current copy trading relationship has ended. Change of parameters in the middle of copy trading is not supported at the moment.

<2> A fully-followed trader has no vacancy and is therefore unavailable to be followed.

<3> A trader can follow another trader as a follower before enabling the Trader Mode. But a trader cannot follow other traders as a follower if this trader has enabled the Trader Mode.

<4> The follower copies all of the trader's positions until the funds are used up, regardless of the copy units, leverage, and position limit for a single order. This may lead to different yields between the follower and the trader.

 

8. FAQs

8.1 Why is the trader's PnL ratio different from that of his/her followers?

<1> The differences in principals between a trader and a follower can lead to different PnL ratios. When a follower runs out of available funds, they will be unable to copy the trader's subsequent long orders.

In a copy-trading relationship, a follower copies any orders placed by the trader until the follower's funds are used up. If a follower's funds have all been taken up by the trader's existing positions and orders, then this follower will be unable to copy the trader's subsequent long orders.

<2> When a trader holds both long and short positions of the same contract (in Hedge mode), the follower's position only synchronizes the trader's net position changes instead of copying all orders made under the long and short positions.

<3> If a trader already holds a position of a symbol and is then followed by a follower, when the trader adds to the position, the trader and the follower will have different entry prices and therefore different profit ratios.

<4> A follower has set leverage for copy trading, resulting in different yields between the follower and the trader after their positions are closed.

8.2 What can a trader do to minimize the yield difference?

It is recommended that your investment size is as close to that of your followed trader as possible, to minimize the discrepancy in yields due to funds size difference.

8.3 How is the cumulative PnL shown in the Followed Trader calculated? Why is it different from the sum of profits of all copy trades?

A follower's actual cumulative PnL= Sum of profits - trading fees deducted for current positions - profits shared with the trader

Cumulative PnL is the sum of profits a follower has earned from all copy trades.

Please note that the unrealized PnL shown on the page is not counted towards the cumulative PnL.