The auto-scaling percentage dictates the extent to which you are following the model account (koalla.tech model account). For eg. if the model account buys 1000 shares of TQQQ, you will buy 200 shares; if your auto-scaling percentage is 20%
As the model account grows, so will yours. In normal circumstances, you do not need to change the auto-scaling percentage.
However if you “add” or “remove” money from your account, the auto-scaling percentage is no longer valid now and you may get “margin insufficient” errors. In these scenarios, you would have to login to the koalla.tech client portal and adjust the auto-scaling percentage.
You have to adjust the scaling percentage and make sure that the “Total Allocated” is equal to or less than “Total Account Equity”; unless you are consciously employing margin.
Here is a video link explaining how the auto-scaling % is calculated and set.
In order to calculate the auto-scaling percentage number, you need two numbers. The numerator is the “Total Account Equity” in step 3 in the screen above. This is the total amount of money you wish to trade in your account and is typically the same as your account equity. In this case it is $53,927.
The denominator is the total equity amount of the strategy that you are following. For the strategy that you are following, hover your mouse over the performance graph for the most recent date and you will find the amount. In this case the amount is $264,987.
The auto-scaling percentage is then $53,927/ $264,987 which is 20.35%. Because you cannot put in decimal places in the auto-scaling percentage, you have two options. Put in 20 if you have an IRA account and you will have a small cash balance in the account. Put in 21 and you will be borrowing a small amount in margin but your entire balance is productive. The choice is yours. The margin rates at IB are pretty low. See this link: https://www.interactivebrokers.com/en/index.php?f=44427
Once you have the auto-scaling percentage, click on the settings icon next to the strategy to change the auto-scaling percentage
Then click on the “Change Auto-trader Settings” to get the screen where you can modify the scaling percentage. Change the percentage and click on the “Turn on Auto-trade” button to save the changed settings.
