The performance of investments in a strategy may differ from the strategy's performance due to the following reasons:
- The absence of a set stop loss primarily causes a stop out on an investment. It is recommended to use stop loss and take profit as the primary risk management tools for investors.
- When the investment was created, there were open orders on the strategy. These orders are not copied to the investment. Therefore, the set of orders and performance differs between the strategy and the investment.
- Orders opened on the strategy may not be copied to the investment due to standard order-opening checks (e.g., free margin, max lot size, min lot size). As a result, the order sets and performance differ.
- The strategy provider may have made a deposit, which allowed them to avoid a stop-out. No such deposit was made on the investment account.
- Performance fees may have been deducted from the investor’s account, reducing their equity relative to the strategy. However, previously opened orders remain open with the same volume, affecting the following performance differently.
- Investment orders are rounded to 4 decimal places during copying, creating deviation.
- The copying coefficient is calculated for each order individually. Therefore, if the equity ratio changes for the above reasons, subsequent orders will be copied with a different coefficient than previous ones, increasing deviation.
- Importantly, deviation caused by these factors increases significantly if the trader uses a full hedging strategy. In such cases, the investor may experience only a partial hedge. While the strategy’s equity remains unchanged, the investment’s equity changes, and as new orders are opened, the copying coefficient may vary significantly.