What to do when a leader is replaced

Why a leader leaves at all

The Elite Top 10 is a sticky basket. Membership is not reshuffled every snapshot on rank alone — a leader stays mirrored until a rule removes them.

Emergency conditions act immediately: Account value falls below roughly $1,000. No fill for 96 hours or more combined with zero trades in the last 7 days.

Soft issues accrue instead of acting: At most one strike per wallet per UTC calendar day. Three strike-days trigger replacement. A clean evaluation day resets the counter to zero. A clean evaluation day resets the counter.

• Fewer than 5 trades in 7 days, or 7-day volume under $25,000, or 48 hours or more since the last fill.
• 30-day trading max drawdown above 35%, measured on jump-adjusted equity so deposits and withdrawals are not read as trading losses.
• 30-day PnL-based ROI below -15%.

Why a better candidate is not a reason

A higher composite score alone never forces a replacement. Score ranks candidates and weights capital; it does not by itself end a leader's membership.

This matters to you as a cost question as much as a risk one. Every replacement closes and opens positions, and both sides pay fees and slippage. Rotating the basket whenever a new name scored higher would transfer a predictable amount of capital to trading costs in exchange for an unpredictable benefit.

What happens to your open sleeve

The departing leader's positions are wound down in their sub-account and the allocation is reassigned to the incoming leader. Because the sleeve is isolated, that unwind touches only that sub-account — no other sleeve is closed, netted or resized as a side effect.

The result of the wound-down sleeve is realised at the prices available when it closes, which will differ from the leader's own exit for the same latency and slippage reasons every mirrored order does.

What you should do

Almost always nothing. Replacement is the policy doing the job you delegated to it: removing a leader whose evidence has degraded or who has tripped a hard rule, and reallocating to a qualified candidate.

The two legitimate reasons to act are unrelated to the replacement itself: sizing you are no longer comfortable with, or a decision to stop mirroring altogether. Both are available at any time, and stopping autopilot is separate from revoking the agent approval.

• Do let the reallocation happen at rebalance.
• Do read the sleeve's realised result as attribution, not as a verdict on the basket.
• Do reduce account capital if absolute sleeve sizes are larger than you want.

What you should not do

Do not close other sleeves in reaction to one replacement. Do not treat a replacement as a prediction about the market — it is a statement about one leader's activity, drawdown or return relative to fixed thresholds. And do not judge the basket on the replaced leader's final sleeve result; that is one member of a weighted set that is explicitly not designed for any single member to determine the outcome.

Replacement is deliberate: Replacement is evidence-based and deliberately slow on soft signals; it is fast only on emergencies.

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.