Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
12 Feb 2024, 06:32
Dear Spotware/cTrader,
I had suffered an unfair loss of capital while copying a strategy provider via ICMarkets cTrader platform.
After checking and clarifying with the ICMarkets support, it was concluded that this was due to unwanted copy trades that were automatically triggered by the cTrader copy system.
The strategy provider may not fully understand how the equity-to-equity ratio functions, recalculating trade/deal volumes in real time as well as the repercussions and adverse effects that it has on the accounts of all his/her copiers when he/she deposits or withdraws funds while trades are still open.
When the strategy provider deposits or withdraws funds while trades are still open, the trades/deals in his account remain the same. However all his copiers' trades/deals would have been recalculated resulting in partial opening or closing of deals which the strategy provider cannot see our accounts. Thus I believe the strategy provider is unaware of the losses that his/her deposit or withdrawal actions had caused to all his copiers.
In view of this, I would like to request that you inform all strategy providers preferably not to withdraw or deposit funds while trades are opened and running as there are repercussions and adverse effects that it has on the accounts of all his/her copiers when he/she deposits or withdraws funds while trades are still open.
If not, the strategy provider may continue to repeat such deposit or withdrawal actions while trades are still open, which could be detrimental to all his/her copiers' accounts.
This round, it had caused me a loss (by no fault of mine) of $227.71 out of my $723.13 account. If the strategy provider repeats another two times of such deposit or withdrawal actions while trades are still open, my account would basically be wiped out. And that would again be totally unfair to me and all his/her other copiers because such losses are not caused by our own deposits or withdrawals nor legitimate trading losses on the part of the strategy provider but by the automatic opening or closing of partial deals by the cTrader copy-trade system.
Therefore it is only fair that the strategy provider be made aware of the repercussions and adverse effects that it has on the accounts of all his/her copiers when he/she deposits or withdraws funds while trades are still open so that he/she does not repeat the same thing again. The strategy provider should only make deposits or withdrawals when all trades are closed so as not to cause any unnecessary and unfair losses in his/her copiers' accounts.
Thank you very much.
Regards,
Kevin Wan
Replies
77ty7th
12 Feb 2024, 14:44
( Updated at: 13 Feb 2024, 06:51 )
RE: Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
PanagiotisCharalampous said:
Hi Kevin,
This is clearly described in the help files, therefore the strategy providers should be fully aware of how cTrader Copy works
https://help.ctrader.com/ctrader-copy/?h=equity#equity-to-equity-ratio
Best regards,
Panagiotis
Hi Panagiotis,
I believe the strategy provider RNfXph either may not have read your help file on equity-to-equity ratio or may have read it but does not full comprehend it because he/she had made withdrawals and deposits multiple times between 01-Feb an 02-Feb while trades were open causing considerable losses to his/her copiers.
Also I have read your help file on how equity-to-equity ratio works, and it does not highlight specifically to strategy providers that withdrawing funds from or depositing funds to their strategy account while trades are open may cause losses to their copiers' accounts. Therefore even if the strategy provider is aware that the platform automatically recalculates their equity and adjusts current open positions and future trades according to the equity-to-equity model, the strategy provider may not be aware that this may result in losses for his/her copiers.
Regards,
Kevin Wan
@77ty7th
PanagiotisCharalampous
13 Feb 2024, 07:07
RE: RE: Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
77ty7th said:
PanagiotisCharalampous said:
Hi Kevin,
This is clearly described in the help files, therefore the strategy providers should be fully aware of how cTrader Copy works
https://help.ctrader.com/ctrader-copy/?h=equity#equity-to-equity-ratio
Best regards,
Panagiotis
Hi Panagiotis,
I believe the strategy provider RNfXph either may not have read your help file on equity-to-equity ratio or may have read it but does not full comprehend it because he/she had made withdrawals and deposits multiple times between 01-Feb an 02-Feb while trades were open causing considerable losses to his/her copiers.
Also I have read your help file on how equity-to-equity ratio works, and it does not highlight specifically to strategy providers that withdrawing funds from or depositing funds to their strategy account while trades are open may cause losses to their copiers' accounts. Therefore even if the strategy provider is aware that the platform automatically recalculates their equity and adjusts current open positions and future trades according to the equity-to-equity model, the strategy provider may not be aware that this may result in losses for his/her copiers.
Regards,
Kevin Wan
Hi Kevin,
I will suggest to the product team to improve the documentation regarding this matter.
Best regards,
Panagiotis
@PanagiotisCharalampous
hughgallagher2
28 Feb 2024, 23:15
( Updated at: 29 Feb 2024, 07:41 )
RE: Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
PanagiotisCharalampous said:
Hi Kevin,
This is clearly described in the help files, therefore the strategy providers should be fully aware of how cTrader Copy works
https://help.ctrader.com/ctrader-copy/?h=equity#equity-to-equity-ratio
Best regards,
Panagiotis
There is absolutely NO WAY that most of SP's on your platform will read your help files. You should be doing MUCH MORE to protect copiers, which, by the way… will protect your own business. Unfortunately, ctrader/spotware simply DOES NOT seem to understand this concept. Firstly you have very little oversight over SP's. This thread is just one example of many isn't it. So for example, when somebody becomes an SP, the problem that was raised by the OP about SP's withdrawing capital, and the problems and loss it can cause copiers, SHOULD BE FLASHED UP CLEARLY IN FRONT OF THE EYES OF THE SP…so that they are aware, not hidden away in a help file that 99.9% of the traders on ctrader that become a SP simply will not read.
@hughgallagher2
hughgallagher2
28 Feb 2024, 23:15
( Updated at: 29 Feb 2024, 07:41 )
RE: Withdrawal and Deposit of Funds by Strategy Provider While Trades are Open Causing Losses to Copiers
PanagiotisCharalampous said:
Hi Kevin,
This is clearly described in the help files, therefore the strategy providers should be fully aware of how cTrader Copy works
https://help.ctrader.com/ctrader-copy/?h=equity#equity-to-equity-ratio
Best regards,
Panagiotis
There is absolutely NO WAY that most of SP's on your platform will read your help files. You should be doing MUCH MORE to protect copiers, which, by the way… will protect your own business. Unfortunately, ctrader/spotware simply DOES NOT seem to understand this concept. Firstly you have very little oversight over SP's. This thread is just one example of many isn't it. So for example, when somebody becomes an SP, the problem that was raised by the OP about SP's withdrawing capital, and the problems and loss it can cause copiers, SHOULD BE FLASHED UP CLEARLY IN FRONT OF THE EYES OF THE SP…so that they are aware, not hidden away in a help file that 99.9% of the traders on ctrader that become a SP simply will not read.
@hughgallagher2
PanagiotisCharalampous
12 Feb 2024, 07:02
Hi Kevin,
This is clearly described in the help files, therefore the strategy providers should be fully aware of how cTrader Copy works
https://help.ctrader.com/ctrader-copy/?h=equity#equity-to-equity-ratio
Best regards,
Panagiotis
@PanagiotisCharalampous