Copy-trading
The copy-trading program is an integrated platform that enables the replication of trades across different MetaTrader servers, synchronizing open and close orders just as with manual trading. Copy-trading simplifies the trading process, allowing investors to emulate the trades of experienced traders. Participants can engage as either "Signal Providers" or "Copy-traders."
A profit-sharing model governs the relationship between Signal Providers and Copy-traders. Signal Providers can set requirements for copy accounts, while Copy-traders can select from various Signal Providers to copy trades in proportion to their funds, with options to set stop loss, take profit, or cease copying at any time to protect their accounts.
Signal provider
1.
Any live trading account can apply to become a Signal Provider.
2.
Your transaction information may be disclosed after becoming a Signal Provider.
3.
Profit-sharing when there is a Copy-trader.
Copy-trader
1.
When you have a main trading account, you need to create a copy account exclusively for copy-trading. Copy accounts can only trade through the manager API and cannot trade manually.
2.
The trading volume of the copy account is copied based on the capital size proportion by default, but it is adjustable in the range of 10%-500%. If the copy-trade ratio is increased, the returns will increase but so does the risks.
3.
There are three ways to manage your risk: set a stop loss, set a take profit, or stop copying trade.
What is Copy-trading Profit-sharing?
Copy-trading profit sharing is developed with the unified interest of both Copy-traders and Signal providers. Profit sharing is represents the percentage of profit that signal providers charge for allowing their trades to be copied over the last following cycle.
The profit-sharing ratio: The percentage of profits that the signal provider will receive from the copy-traders’ earnings based on the successful trades they replicate, it’s allowed to set their profit-sharing fee from 0% to 50%.
* Refer to diagram of Signal provider request of 25% profit-sharing.
HWM (High Water Mark)
Profit-sharing execution is based on Realized + Floating PnL during the trading period, and in accordance with the HWM (High Water Mark) mode. With this mode, you will be ensured to receive a profit-sharing fee only if the sum of all the trading results of all previous intervals will cover the total loss of the copy-trading period, and only if its profit is higher than the highest profit. When it is reached, and the copy-trading profits even more, the High Water Mark is updated and set to a new, higher, level.
The HWM (High Water Mark) is recorded once at the end of each following cycle, starting from the moment the copy-trader's account begins copying, to capture the HWM data at the end of the cycle.
A new High Water Mark can never be lower than the previous one - it is always a positive value (since the initial one is at 0). Profit-sharing fee is paid only for positive trading results; therefore, Signal Providers will get paid their profit-sharing fees only if their trades constantly make profit for their copy-traders. Losses are acceptable, but to get paid again, signal providers must cover them for the copy traders first.
Trading result =
Aggregated realized profits of all Trading Results of the copy-trading period – High Water Mark
Profit-sharing example (assuming a settlement cycle of 30 days)
First Month
Copy-trader makes $2,000 profit from copying.
$2,000 above starting HWM of $0.
Profit-sharing: 2,000 *25% = $500
HWM is updated to $2,000.
Second Month
Copy-trader loss $400 from copying.
Total net profit: 2,000-400=$1,600 < HWM $2,000.
No profit-sharing and HWM updated.
Third Month
Copy-trader makes $1,000 profit from copying.
Total net profit: 1,600+1,000=$2,600 > HWM $2,000.
Profit-sharing: (2,600-2,000) *25% = $150
HWM is updated to $2,600.
Forth Month
Copy-trader makes $400 profit from copying.
Total net profit: 2,600+400=$3,000 > HWM $2,600.
Profit-sharing: (3,000-2,600)*25% = $100
HWM is updated to $3,000.
Copy account protection
Pay Signal provider only when your account is profitable
Our profit-sharing model simplifies your copy trading. You only pay fees based on the net profit within each trading cycle, taking into account both floating profits and realized profits. Our "High Water Mark" system ensures that you only pay fees when profits exceed any previous peaks, guaranteeing that you only pay for genuine performance growth.
Protect your investments
If the market goes against the Trader you’re copying, our investment protection features help to manage your risk: set a stop loss, set a take profit, or stop copying trade.
Security of funds
You're in total control of your money as no-one else can access your copy account.
Transparent results
You can analyse the performance of each strategy before you invest.
FAQ
1. How do I choose a signal provider?
KVB uses advanced algorithms to provide you with the best signal providers available. Using the filter function, you can find and choose the signal providers that best suit your needs.
2. Can I set up copy-trading with multiple signal providers?
Each copy account is limited to copying one signal provider. To copying trades from multiple signal providers, you must create multiple live accounts for each.
3. Can I open or close an order in my copy account by myself?
Copy accounts can only trade through the manager API and cannot trade manually.
4. How can I become a signal provider?
KVB client with a live account can become a signal provider. Simply navigate to your copy-trading area and select an live account to use as your signal strategy.
5. When do I get my profit-sharing?
You will get profit-sharing when:
a. When a copy-trader completes the settlement of the current following cycle.
b. When a copy-trader opts to stop coping, profit-sharing is executed immediately upon stop copying.
c. When a copy-trader's account triggers a Take Profit (TP) or Stop Loss (SL), profit-sharing is executed immediately, and the copy-trading relationship is terminated.
6. Why don't I receive my share of profits from copy-traders?
To qualify for profit-sharing, your current copy-trading cycle must be profitable and exceed your copy-trader's HWM.
*Calculated separately for each copy-trader.
*Calculated separately for each copy-trader.