Why isolation is a structural requirement, not a nicety
Copy trading a basket is portfolio construction: you are deliberately holding several strategies at once because their mistakes do not arrive on the same day. Netting undoes that on the way in — the exposures are combined before they can diversify anything.
Isolation is what makes a multi-leader basket behave like a basket instead of like an accidental single position with extra fees.
- Each leader's long and short exposure survives intact.
- Per-leader PnL is measurable, which is what makes scoring and replacement meaningful.
- Margin problems in one sleeve cannot consume the margin backing another.
- Replacing one leader touches one sub-account and leaves the rest untouched.