When it comes to trading involving Strategy Automation, Robots, Replicator, and/or Copy Invest, the organization of operations plays a crucial role in understanding the overall status of the user's account. In this article, we will explain how portfolios are used to organize and display the operations executed by each feature, and how this impacts the overall account balance. Additionally, we will cover specific scenarios that may require adjustments in the way positions are displayed within wallets.
First, it is important to understand the expression that determines the overall account balance:
Main Account Balance = Default Wallet Balance + Wallet Balances
This equation reflects how the overall account balance is calculated based on the balances of the standard account and the associated wallets.
Example
To illustrate this concept, let's consider the following scenario:
We have two wallets, Wallet A and Wallet B, both trading the asset USATEC simultaneously. However, the positions in these wallets differ. Wallet A holds a long position of 1 contract, while Wallet B holds a short position of the same amount.
In such a case, the overall balance can be calculated as follows:
Main Account Balance = 0 + (1 - 1)
Main Account Balance = 0
This means that, although the user has two positions in different wallets, the overall account balance is effectively zero.
Adjusting the Visualization
To avoid difficulties when viewing positions, it is necessary to transfer the balance from Wallet A to the Default Wallet. This action will ensure that the positions from the wallets are no longer displayed separately, simplifying the understanding of the overall account status.
Exchange Liquidation Scenario
Now let's explore a different situation. Suppose Wallet A holds a long position of 1 USATEC contract and is using a very distant Stop Loss. If the asset’s price drops to the point that it triggers a forced liquidation by the broker, this liquidation will be recorded under the Default Wallet. This means that the position in Wallet A will remain open, and a new short position of 1 contract will be opened in the Default Wallet. The overall balance in this scenario would be calculated as follows:
Overall Account Balance = -100 + 100
Overall Account Balance = 0
Although the general account position may appear neutral due to the broker's forced liquidation, the visualization tools will still show the 1-contract long position when the wallet account is selected.
Wallet A and Default:
Main Account:
Adjusting the Visualization
To avoid difficulties in viewing positions, it is necessary to transfer the balance from Wallet A to the Default Wallet. This action will ensure that the wallet positions are no longer displayed separately, simplifying the understanding of the overall account status.
Manual Liquidation in the Main Account Scenario
Another common case is manually closing the position directly in the main account using the available tools on the platform.
Consider the following scenario: Wallet A holds a long position of 1 contract, which is the only open position. Using the overall balance formula, the initial situation is as follows:
Main Account Balance = 0 + 1
Main Account Balance = 1
At this point, when selecting the overall account, you will see the 1-contract position reflected the same way as in Wallet A. However, if you're using automation and manually close the position, the automation for Wallet A will be paused, and a sell order will be registered both in the Overall Account and in the Default Wallet. This happens because the Default Wallet reflects what was sent by the main account. As a result:
Overall Account Balance = -1 + 1
Overall Account Balance = 0
Wallet A and Standard Wallet:
Main Account:
In other words, although the position still appears in the wallet, an opposite position is opened in the Default Wallet, keeping the overall account balance at zero. There is, in fact, no open position in the overall account.
Adjusting the Visualization
In this case, to completely close the positions in both the Default Wallet and Wallet A, it is necessary to transfer the balance from Wallet A to the Default Wallet. This will close all remaining positions, ensuring that the account is fully neutralized and has no exposure to the asset in question.
Conclusion
Understanding how wallets affect your balance and positions in trading is essential for effective management of your investment strategies. Additionally, knowing how to manually close positions in the overall account can be helpful in specific situations. Make sure you are familiar with these concepts and use the available platform tools to keep your operations under control.
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