Position Sizing Synchronization

Position sizing synchronization is the process of proportionally adjusting the trade volume in a follower's account to match the relative exposure of a lead trader. Because followers rarely have identical account sizes to the lead trader, simple mirroring of raw volume is often impossible or dangerous.

Instead, the system calculates the percentage of the lead trader's total portfolio allocated to a specific derivative contract. This percentage is then applied to the follower's total equity to determine the appropriate trade size.

This ensures that the follower experiences the same level of risk exposure relative to their own capital. Proper synchronization is vital for maintaining the intended risk profile and avoiding over-leveraging.

If the synchronization logic is flawed, the follower may be exposed to disproportionate volatility compared to the original strategy.