Order scaling when the strategy legs in and out of positions

In general, accounts can get AutoSync adjustments with scaling factors that are less than 100%. If you want to avoid AutoSync adjustments, you will need to select a scaling factor that results is non-fractional quantities. You can also set a maximum quantity or value per position.

One thing to know about C2 Autotrading is we cannot trade partial Futures/Options/Forex contracts: we will always round down. e.g. 20% scaling x Buy 7 signal = 1.4 contracts, which gets rounded down to 1.

The same holds true with Options and Futures when the scaled amount is less than 1, they will get rounded to 0 and no trade will be taken.  With Forex however, there is a 1 lot minimum, so if the scaled amount is less than 1, you will still take a 1 lot position.

Another thing to know is closing signals are always percentages. e.g. If strategy is long 10 and a sell 5 signal is received, this will translate to "sell 50% of the current position in the account at the time the signal is processed".

To illustrate, let's look at the following hypothetical scenario with 33% scaling:

1) Strategy buys 10 shares
2) Subscriber buys 3 shares.
3) Strategy sells 50% (5 shares). It is now long 5.
4) Subscriber sells 50% x 3 = 1 share. He is now long 2.

Subscriber is now long 2 and strategy is long 5. AutoSync checks the account and applies the Subscriber's setting: 5 x 33% = 1 share. AutoSync must sell 1 share to adjust the account so it is sync with the strategy.

We do our best to minimize such adjustments, but we also have an obligation to synchronize the account. The solution is to choose settings that result in non-fractional quantities.


Another hypothetical scenario with 50% scaling and a Max of 1:

1) Strategy buys 6 contracts.
2) Subscriber buys 1 contracts. (Maximum size constraint is 1)
3) Strategy sells 50% (3 contracts). It is now long 3.
4) Subscriber sells 50% x 1 = 0 contract. He is still long 1.

Subscriber is long 1 and strategy is long 3. AutoSync checks the account and applies the Subscriber's setting: long 3 x 50% = 1 contract. AutoSync will do nothing because the account is in Sync.