Position sizing and independent leverage caps

Proportional, not identical

Copying a leader's absolute size is meaningless across different account sizes. Copying their percentage exposure is closer, but still assumes the follower's risk tolerance and time horizon match the leader's — which they usually do not.

Sizing here starts from the capital allocated to that leader's sub-account by score weight, applies the leader's proportional exposure, then clips the result at a notional ceiling and a leverage cap.

• Score weight sets how much capital the leader's sub-account receives.
• Proportional exposure translates the leader's position into that context.
• The notional ceiling caps the absolute size regardless of the above.
• The leverage cap applies last and cannot be raised by the leader.

Why capping leverage independently matters

Leverage is the variable that converts a normal adverse move into a liquidation. A leader with a long record at high leverage has survived their own risk profile — which is not evidence that a follower with different capital and different holding behaviour will.

Capping leverage independently changes the mirrored strategy's character slightly: some positions are smaller than the leader's proportional equivalent. That divergence is accepted deliberately, because the alternative is importing someone else's tolerance for ruin.

The cost of caps

Caps cut both tails. When a leader's high-leverage position works, a capped mirror captures less of it. That is the explicit trade: giving up upside in the specific scenarios that most resemble the ones which end accounts.

Rounding is the other cost. Very small allocations round to exchange minimum sizes and can drift from the leader's proportional exposure, which is part of why diversification is volume-gated.

Risk that sizing cannot fix

Correct sizing lengthens survival; it does not create edge. A well-sized position in a losing strategy still loses, and a gapping market can move through any margin buffer.

Past performance is not indicative of future results. Perpetual futures are leveraged instruments and carry a substantial risk of loss, including the loss of your entire position.