During the process of following a trader, the trading actions of the trader directly impact the returns for followers, due to the difference in capital between the trader's account and the follower's account.
When a trader chooses to open positions with leverage exceeding 20x and engages in multiple additional positions (more than 4 times), it is more likely to trigger followers whose capital exceeds that of the trader to reduce leverage and add positions. After triggering the reduction in leverage, each new position followed by the follower will occupy more capital, making it easier for followers to encounter 'Insufficient Balance for Copy-Trading, Copy-Trading Failed’ situations.
Regardless of the leverage level, when the trader's single position increment is high (reaching the leverage holding limit), followers with more capital than the trader will experience larger position increments when executing trades. This triggers partial executions, and during partial executions, the high market volatility makes it challenging to find optimal prices, resulting in transaction failures and the inability to fully replicate the additional positions.
The more a trader adds positions, the more deviation in the average price between followers and the trader occurs due to factors such as follower capital and slippage. After the average price deviates, if the trader closes the position with a small profit margin (less than 2%), it may lead to a scenario where 'Traders Earn, While Followers Lose’.