About the difference between fixed ratio copying and fixed quota copying

Recently, during the suspension of the order-leading project, I have thought a lot about risk control.

This includes the difference between fixed ratio copying and fixed ratio copying, and which one is better when risks come.

In the copying project, most order-leaders will recommend friends who follow orders to choose fixed ratio copying

The advantage of fixed ratio copying is obvious, that is, you can open positions in real time according to the order-leader's opening ratio. When things go well, profits roll very quickly, but the disadvantages are also obvious, and losses can also come quickly.

The advantage of fixed ratio copying is that the number of positions opened for each transaction can be set by the user to avoid opening the position all at once. At the same time, the user can do a good job of risk control. The size of the position opened each time can be set according to the profit expectation and the acceptance range of the loss. The disadvantage is that it may not be possible to synchronize the opening ratio with the order-leader. However, unless a large position is opened, fixed ratio copying is generally sufficient.

So in what cases is it more suitable for fixed ratio and what cases is suitable for fixed quota copying. Generally speaking, if you want to follow the medium- and long-term trend, you need to keep adding positions to spread the cost, which is suitable for more fixed ratios. This is also the reason why many order takers keep carrying orders. Their trading model is to absorb goods through low leverage, survive the turning point, and achieve profitability.

If you only do ultra-short-term trading, you generally don’t need to continue to add positions, which is more suitable for fixed-amount order following, because ultra-short-term trading is fast in and out, and the space for winning points is small. The leverage will be larger than that of medium and long-term trading. Using fixed-amount order following can reduce risks.

There is no eternal god in the contract market. Even if the tortoise and the rabbit are the first in the public domain, they still cannot avoid the risk of losing users. There are also famous bloggers such as the chief. Even if the order takers are awesome, they can’t be 100% correct. There will always be a time when there is a slack, so users need to do risk control by themselves at this time. The most important thing about risk control is not to stop the overall position, but to choose the appropriate opening method according to the actual situation.

At the same time, it is necessary to be prepared for profit withdrawal. After making a profit, many people want to make more, so they start adding positions. This is not a good habit. In fact, profits should be withdrawn so that when risks come, they will not lose all at once.

That’s it, my recent reflections, for your reference