What is Copy Stop Loss?
Copy Stop Loss (CSL) is a feature that gives you the ability to manage your trades effectively by providing risk management in each “copy relationship” based on real time Profit/Loss values. It is essentially an automated risk control system that allows you to set controls for the entire copy relationship at a dollar value. The CSL amount represents the copy equity that needs to be reached in order for the entire copy to close automatically, NOT the amount you are willing to lose.
Trader A is copied by Trader B with $100 and a CSL set at $60 – meaning Trader B does not want the copy relationship to lose more than $40 before CSL triggers. Trader A has 2 positions: one that has gained $10, another that just dropped to -$50. At that point, CSL triggers and both positions – the losing position, and the gaining position are closed and the copy relationship with that trader is disconnected.
The default CSL is set at 60%* of your copy equity so that once you've lost 40% of your investment, the copy will close. You will be able to edit your CSL upon copying a trader and at any point thereafter; however, it is important to note that every time you edit your CSL, the new value will reflect as a percentage of your copy equity at the time of the edit and not the original allocated amount.
*The default Copy Stop Loss in a Smart Portfolio is set at 5% of your invested amount. This means that if the Smart Portfolio's value drops below 5% - in other words, if you lose 95% of your investment - the Smart Portfolio will close.
Please read more about this feature here.