How Copy Trading Works

Understanding the technical architecture behind copy trading.

Architecture Overview

Copy trading uses a real-time WebSocket connection to MEXC to monitor the master account's positions:

1. 1. Connection - MEXC Manager connects to MEXC's WebSocket using the master's API credentials
2. 2. Subscription - Subscribes to position updates for the master account
3. 3. Detection - Detects when positions open, close, or change
4. 4. Execution - Replicates the action on all follower accounts
5. 5. Logging - Records all activity for review

WebSocket Connection

The copy trading system maintains a persistent WebSocket connection to MEXC:

• Endpoint - MEXC's contract WebSocket API
• Authentication - Uses HMAC-SHA256 signature with your API credentials
• Heartbeat - Ping/pong every 15 seconds to keep connection alive
• Auto-reconnect - Automatically reconnects if connection drops

Position Detection

The system tracks the following position events:

• Position Opened - New position detected (volume goes from 0 to X)
• Position Closed - Position fully closed (volume goes to 0)
• Position Increased - Added to existing position (volume increased)
• Position Decreased - Partial close (volume decreased but not to 0)

Execution Flow

When a position change is detected:

Opening Positions

1. 1. Receive position open event from WebSocket
2. 2. Extract: symbol, side, volume, leverage, entry price
3. 3. For each enabled follower:
   • a. Calculate follower volume (master volume × copy ratio)
   • b. Apply max position size limits if configured
   • c. Execute market order on follower account
4. 4. Record execution results in database
5. 5. If SL/TP copying enabled, create stop orders
6. 6. Log the activity

Closing Positions

1. 1. Receive position close event from WebSocket
2. 2. Look up corresponding follower positions
3. 3. For each follower with an open position:
   • a. Close the position at market
   • b. Record P&L
4. 4. Update position status in database
5. 5. Log the activity

Parallel Execution

Follower trades execute in parallel for speed:

• All follower orders are sent simultaneously
• Independent execution - one failure doesn't affect others
• Results collected and logged for each account

Connection Status

The copy trading group shows its connection status:

Reliability Features

• Auto-reconnect - Reconnects automatically if connection drops
• Exponential backoff - Increasing delays between reconnect attempts
• Server restart recovery - Groups automatically restart when server restarts
• Error logging - All errors are logged for troubleshooting

Next Steps

• Create a copy trading group
• Master vs Follower accounts
• Troubleshooting connection issues