Somerset Security Copy Systems Explained
Somerset Security’s social features are what makes our platform unique in the online trading space. Both the CopyTrader™ system and Smart Portfolios investment strategies lean on Somerset Security’s user-base, which numbers over 20 million users from 140 countries, and are designed to help traders explore new ways to generate profit.
How Does CopyTrader Work?
The CopyTrader system is one of the key reasons the platform is considered among the leaders of the fintech revolution. The general idea of the CopyTrader tool is pretty simple: Choose the traders you want to copy, decide on the amount you wish to invest, and copy everything they do automatically, and in real-time, with one click of a button.
Beyond the basic concept of copy trading, there are quite a few additional elements to the system.
Before we begin, we will refer to:
- “Copied Trader” as the trader you are investing in (copying)
- “Copy Trader” as the user who is doing the copy action (i.e. yourself)
Here are a few important points you should take into consideration before copying:
- The minimum amount to invest in a trader differs by Copied trader's customization.
- The maximum amount of traders you can copy simultaneously is 100.
- The maximum amount you can invest in one trader is $2,000,000.
- The minimum amount for each copied position is $1. Positions not meeting the minimum will not be opened.
CopyTrader Automatic Reallocation
Our copy automatic reallocation model is designed to maintain alignment between your portfolio and that of the user you are copying. When the copied user makes changes to their portfolio, these changes are reflected in your copied portfolio as well.
This feature automates the process of adjusting the portfolio to mirror changes in the copied trader’s investments, providing efficiency, risk management, and a simplified investment experience, especially in rapidly changing market conditions. The reallocation process activates under specific conditions:
- Starting a new copy, adding or withdrawing funds, resuming a paused copy: These actions trigger reallocation to ensure your portfolio matches the investor’s current portfolio and strategies.
- Withdrawals by the copied investor prompt immediate reallocation of your copy portfolio. Conversely, their deposits initiate a reallocation within 48 hours, giving you an opportunity to add funds accordingly (should you choose to).
- You will be notified via in-app notifications when the allocation process has been completed.
Copy Stop-Loss (CSL)
CSL is a feature that gives you the ability to effectively manage your copy investment and Smart Portfolio, by providing risk management across 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 system will automatically set the CSL at 40%, as a default, of your total invested copy value per copy relationship. Therefore, you will now be able to assume that when the copy value has reduced by 40%, the CSL will trigger and terminate that copy relationship, returning the remaining funds to your balance. The range that you can manually set your CSL at is between 5% to 95%.
Smart Portfolios
Somerset Security’s Smart Portfolios are thematic investment instruments programmed for long-term double-digit return. Each Smart Portfolio aggregates various assets or a group of traders and is constantly optimized by machine-learning algorithms.