Trade Copying Cover

Leeloo Trading: Updated Trade Copying Policy

ByJack | MyDailyTake Reading Time: 3 minutes

Leeloo Trading has recently revised its policy regarding the use of copy trading software on Performance Accounts (PAs). This update aims to “maintain fair trading practices and platform integrity.” However, there appears to be a discrepancy between the rule as written—focusing on “copiers or copy software”—and its broader interpretation by Leeloo’s support, which includes manual trade copying.

Overview of the Updated Policy

The policy explicitly restricts the use of copiers or copy software on PA accounts, including those with certain Edge Enhancers and Accelerator Accounts. It further limits traders from using copy software to manage more than three accounts simultaneously.

To maintain fair trading practices and platform integrity, specific rules govern the use of copiers or copy software on Leeloo Trading Performance Accounts (PA). Though the following restrictions apply to PA’s, Leeloo Trading strongly encourages all traders to practice inside their practice accounts within the same restrictions.

Restricted Accounts:

Traders are not permitted to use copiers or copy software on the following account types:

  • Accelerator Accounts
  • Accounts with either 10 day or 15 day payout Edge Enhancers
  • Accounts with the WAIVE 30% Rule Edge Enhancer
  • Accounts with the Reduce Rule (from 30% to 50%) Edge Enhancer
  • Weekly accounts
  • Third-party accounts

Copying Limits:

Traders are also restricted from copying more than three accounts, simultaneously. 

https://support.leelootrading.com/kb/a195/restrictions-on-using-copy-software-for-performance-accounts.aspx?KBSearchID=86843

Discrepancy in Enforcement?

A potential discrepancy emerged when a trader inquired about manually setting up multiple accounts with the same trading strategy, which does not involve automated copy software (i.e., copiers or copy software). The support’s response indicated that manually placing the same trades across more than three accounts would also breach the copying limits, suggesting a broader interpretation that includes manual trade duplication under the policy’s umbrella.

Traders can copy trade between 3 PAs. That is, 1 master account and copy to a maximum of 2 PAs. If you do it manually expecting to have the same performance, it would be considered copy trading.

Why Allow Multiple Accounts if Restrictions Are Tight?

An important question arises from the policy’s enforcement: If traders are limited to copying between just three accounts, why does Leeloo allow them to have up to 10 PA accounts? This allowance seems contradictory and raises concerns about the practicality and rationale behind such a policy. Allowing traders to hold multiple accounts while restricting the use of copying strategies (both automated and manual) across these accounts might seem counterintuitive, especially when Leeloo advertises a merchants copier on its site that allows copying across 20 accounts. It suggests several possible motivations:

  • Risk Diversification: Having multiple accounts could enable traders to experiment with different trading strategies without risking their entire capital in one approach, thus spreading risk across several portfolios.
  • Market Testing: Multiple accounts allow traders to test various markets or trading conditions simultaneously, gathering data that could inform more effective strategies.
  • Flexibility and Control: By managing multiple accounts, traders can have more granular control over their investments, tailoring their approach to different market segments.

Clarifications Needed

Given the potential confusion, Leeloo Trading needs to clarify:

  • Whether the limit on copying trades strictly applies to the use of automated tools or if it extends to manually duplicating trades across multiple accounts.
  • The rationale behind allowing traders to maintain up to 10 PA accounts while imposing strict limits on how these accounts can interact, particularly concerning the objectives of risk management and operational flexibility.

Conclusion

For traders, it is important to understand these rules’ nuances for compliance and trade planning. They should seek further clarification from Leeloo’s support team and stay informed through official Leeloo communications (e.g., emails, website updates). A clear understanding of the policy’s broader objectives will aid traders in navigating these restrictions successfully and ensuring their trading aligns with the platform’s intended rules.