really like the smooth handling of the auto trade tool, but there are 2 big questions that came up which could not be solved by the FAQ/help section.
1. if open trades are hidden by the provider, are open trades which are in a loss for now but still open included in the providers performance/equity or are only closed gains/loses recognized, if they are hidden by the provider?
I think little more information should be provided once you go live and subscribe to a provider, if not full clearance of open trades or at least on their number of open trades and their influence on margin/equity or if they are in a gain or lose. otherwise a portfolio can be pimped up easily for some time by leaving small losing trades open
until they are closed
2. The information on 'How a lot size is calculated?' in the auto trade help section is not clear to me at all. i think the function might scew on risk adjustment(multiplyer and hypotheticals):
The function says: follower_trade_size = leverage_ratio X balance_ratio X account_currency_ratio
-'500 pips a month' for example has hidden their info on leverage, so leverage_ratio will be unknown and therefore follower_trade_size cant be calculated by the follower, so that i would have to check their trade history after a followed trade is closed in order to then solve the function anyways...
- if leverage_ratio would be equal in both systems and the provider has more balance ( for example twice as much balance) so that balance_ratio = 0.5 then all hypothetical risks are scewed when the provider trades many micro lots because the follower cant trade 0,5x of a micro lot leaving him with a doubled risk ratio on these trades... ( '500 pips a month' is one of the providers with many micro trades)
-cant follow the logic behind leverage_ratio in order to fit trade_sizes. one example if balance ratio now equals one with only half leverage for the provider (leverage_ratio=2) then trade_size= 2x provider lot size, which will even the margin risk for both accounts but in return DOUBLE the P/L risk of the followers trade. To me this function only evens margin requirements but acts like a 2x multiplier on the provider trades.
I hope i didnt misunderstand all the risk calculations but some more information on this topic is really helpful for followers since the provider portfolios only show realized gains/loses but almost nothing about unrealized risk if open trades are hidden(i think only the equity information under 'info stats' is useful to so the providers current equity and therefore losing or winning trades)
does anybody know more about risk calculation with the auto trade tool? i have a feeling that the hypotheticals are scewed as soon as leverage or balance is different from the provider portfolio...