Slippage Protection
Polyfollow automatically protects you from slippage - when the price you pay differs significantly from the price the trader got. Here's how it works and why it matters.
What is Slippage?
Slippage occurs when the market price moves between when:
- The trader executes their trade
- Your copytrade executes
| Scenario | Trader Price | Your Price | Slippage |
|---|---|---|---|
| Normal | 45¢ | 45.5¢ | 1.1% |
| Moderate | 45¢ | 47¢ | 4.4% |
| Excessive | 45¢ | 52¢ | 15.5% |
Even with our 250-800ms execution speed, fast-moving markets can shift prices.
How We Protect You
Before executing any copytrade, we set a limit price based on the trader's fill:
| Protection | Value | Purpose |
|---|---|---|
| Slippage % | 7% of trader's price | Scales with price |
| Minimum floor | 2¢ | Protects low-priced trades |
| Order type | IOC Limit | Fills at limit or better, cancels remainder |
Your limit price = Trader's price + max(2¢, 7% of price)
Technical Details
How Limit Price is Calculated
Trader filled at: 0.45 (45¢)
Dynamic slippage: max(0.02, 0.45 × 0.07) = max(2¢, 3.15¢) = 3.15¢
Your limit price: 0.45 + 0.0315 = 0.4815 (48.15¢)
Result: Order placed at 48.15¢ limit - fills at that price or better
Low-Price Example (2¢ floor kicks in)
Trader filled at: 0.10 (10¢)
Dynamic slippage: max(0.02, 0.10 × 0.07) = max(2¢, 0.7¢) = 2¢
Your limit price: 0.10 + 0.02 = 0.12 (12¢)
Result: Order placed at 12¢ limit - 2¢ floor protects you
Limit Order Protection
We use IOC limit orders, not market orders:
| Order Type | Risk | Our Approach |
|---|---|---|
| Market order | Fills at ANY price | Never used |
| Limit order | Fills at specified price or better | Always used |
| IOC (Immediate-or-Cancel) | Fills what's available, cancels rest | Fast execution |
Your order specifies a maximum price. If the market has moved beyond it, the order doesn't fill - protecting you from bad entries.
When Slippage Protection Triggers
Common scenarios where we skip trades:
| Scenario | What Happened | Protection |
|---|---|---|
| Whale trade | Big buy moved price up sharply | Skip your copy |
| News event | Market reacted before we copied | Skip at bad price |
| Low liquidity | Not enough shares at good price | Skip thin market |
| Flash spike | Temporary price manipulation | Skip artificial price |
Real-World Example
Scenario: Trader buys at 45¢, price spikes to 52¢
| Without Protection | With Protection |
|---|---|
| You buy at 52¢ | Trade skipped |
| 15.5% worse entry | No position taken |
| Starts underwater | Waits for better opportunity |
Outcome: You avoided a bad entry. If the trader is right, they'll likely add more at better prices - which you'll copy.
Why 7% + 2¢ Floor?
We chose this dynamic threshold because:
| Component | Reasoning |
|---|---|
| 7% of price | Scales with trade size - larger prices get more room |
| 2¢ minimum | Protects cheap shares (10¢ shares need at least 2¢ buffer) |
| Dynamic calc | Adapts to each trade automatically |
Real Examples
| Trader Price | 7% Value | Floor | Actual Slippage Allowed |
|---|---|---|---|
| 10¢ | 0.7¢ | 2¢ | 2¢ (floor kicks in) |
| 30¢ | 2.1¢ | 2¢ | 2.1¢ (7% wins) |
| 50¢ | 3.5¢ | 2¢ | 3.5¢ (7% wins) |
| 80¢ | 5.6¢ | 2¢ | 5.6¢ (7% wins) |
This protects you across all price ranges while allowing normal market movement.
What Happens After a Skip
When slippage protection triggers:
- Trade is skipped (not executed)
- Logged in your trade history
- No spam notification (it's working as intended)
- Next trade from this trader copies normally
You don't need to do anything - protection is automatic.
Benefits of Slippage Protection
| Benefit | Impact |
|---|---|
| Better average entry | Only enter at favorable prices |
| Avoid FOMO losses | Don't chase pumped prices |
| Match trader returns | Enter at similar prices |
| Protect capital | Skip unfavorable setups |
With vs Without Protection
| Metric | Without | With Protection |
|---|---|---|
| Trades executed | All | Quality trades only |
| Average entry price | Worse | Close to trader |
| Return matching | Poor | Excellent |
| Bad entries | Common | Rare |
FAQ
Will I miss good trades?
Rarely. With 250-800ms execution, we copy before prices move significantly. If a price moves beyond our 7%/2¢ limit, the opportunity has usually passed anyway.
Can I disable slippage protection?
No - it's a core safety feature. We believe protecting you from bad entries is more important than copying every single trade.
Does this affect sells too?
Yes, but inverted. We won't sell at prices significantly worse than the trader got.
What if I keep getting skips?
Check if you're following traders in very volatile markets. Consider traders with more liquid market picks.
Pro Tips
- Trust the protection - Skipped trades usually would have been bad entries
- Check trader's markets - Liquid markets have less slippage
- Don't chase - If a trade is skipped, don't manually enter at the bad price
- Review skips - Your trade history shows what was skipped and why