How does the Pre Allocation method work in Replikanto?

Pre Allocation is one of Replikanto's copy methods. It fixes the quantity each follower account trades, independently of the leader's order size. This article covers how it works, when to use it, how to configure it, and the pitfalls to watch for.

How the Pre Allocation method works

With Pre Allocation you set a fixed, pre-defined quantity for each follower account. When a trade is copied from the leader, the follower places an order with that quantity, no matter how many contracts are in the leader's order.

• The leader trades 1 contract and the follower is set to 3 — the follower trades 3.
• The leader trades 10 contracts and that same follower is still set to 3 — the follower trades 3.

The quantity is set per follower, so different follower accounts can each have their own fixed quantity.

1 = Method set to Pre Allocation; 2 = each follower's fixed quantity. Whatever the size of the leader's order, Sim102 trades 3, Sim103 trades 1 and Sim104 trades 2.

Pre Allocation compared with the other copy methods

Each Replikanto tab uses a single copy method for all the followers configured in it. To run Pre Allocation on some accounts and a different method on others, add a second tab (or open a second Replikanto window) and configure it with the other method.

When to use Pre Allocation

• Accounts with a fixed contract requirement — for example a prop firm account that must trade exactly 1 contract per trade, whatever the leader does.
• Position sizing that should not track the leader — when a follower's size is decided by that account's own rules rather than by the size of the leader's order.

How to configure Pre Allocation

1. Open Replikanto in NinjaTrader and configure the leader account instrument as usual.
2. Click the Method dropdown on the left side of the Replikanto window and select Pre Allocation.
3. In the Follower Accounts grid, click the On indicator of each follower account that should use this method so it turns green.
4. Set the fixed quantity for each follower account in its Pre Allocation cell in the follower grid. Starting with Replikanto 1.7.0.0, this value cannot be edited while that follower has an open position or a working order (the cell is dimmed); flatten the follower or wait for the trade to close first. See Why can't I change follower settings during a trade?
5. Enable ATM Copy for each follower. This is recommended — see the next section for why.
6. Test the setup with SIM accounts before running it on live accounts.

The steps above: 1 = Method > Pre Allocation (step 2), 2 = On (step 3), 3 = Pre Allocation (step 4), 4 = ATM Copy (step 5).

1 = Sim102 is in a trade (position 3, working TP:3 SL:3 orders); 2 = its Pre Allocation cell is dimmed and cannot be edited until the trade closes. Sim103 and Sim104 are flat and stay editable.

Using Pre Allocation with ATM Copy

Pre Allocation should be used together with the ATM Copy feature. Without it, the follower's exit orders are copied from the leader at the follower's fixed quantity, which does not match the follower's entry quantity — see the exit-order pitfall below.

• With ATM Copy enabled, each follower runs the leader's ATM strategy locally to manage its own exits, instead of receiving copies of the leader's exit orders.
• Because Pre Allocation gives the follower a quantity that differs from the leader's, NinjaTrader distributes that follower's quantity across the targets defined in the ATM strategy. Any quantity left over after the distribution goes to the first target — that is a NinjaTrader rule, not a Replikanto one.
• Define the target quantities in your ATM strategy with the followers' fixed quantities in mind, not only the leader's.
• ATM Copy applies only to trades placed from NinjaTrader Desktop using an ATM strategy. Orders placed elsewhere have the leader's exit orders copied instead, even with ATM Copy switched on.

Step-by-step instructions are in How to enable and use ATM Copy in Replikanto

Pitfalls to watch for

Without ATM Copy, the copied exit orders can double the follower's position

With ATM Copy switched off, Replikanto copies the leader's exit orders to the follower, and the Pre Allocation quantity is applied to each order individually — the entry and every exit alike. When the leader splits its exits across several targets, the follower's exit quantities no longer add up to its entry quantity.

Take a leader that enters with 2 contracts and manages the position with two profit targets and two stop losses of 1 contract each. A follower set to a Pre Allocation quantity of 3, with ATM Copy off, receives this:

The leader's exits close exactly the position it opened. The follower's exits are sized to close twice what it opened, so once the market fills them the surplus contracts open a new position the trader never intended.

The same thing happens with a simple OCO bracket: at a Pre Allocation quantity of 1, Replikanto copies the entry, the stop and the profit target, and the second exit order can open a fresh position after the first exit has already closed it.

How to avoid it: enable ATM Copy for the follower and place the entry from NinjaTrader Desktop with an ATM strategy attached to the order. The follower's own NinjaTrader then builds the exits from its own 3-contract quantity and distributes them across the strategy's targets, so the exits always match the position that was actually opened.

Other things to watch for

• Custom Stop Strategy on a scaled quantity. If your ATM strategy uses a Custom Stop Strategy on any target, do not combine it with a Pre Allocation quantity that differs from the leader's. The Custom Stop Strategy does not account for the follower's scaled quantity, so the stop can close more contracts than expected. Use a regular stop loss instead.
• Mismatched ATM strategies. The same ATM strategy — same name and same configuration — must exist in every NinjaTrader instance involved. A mismatch is the most common reason exits do not fire as expected.
• Going live without testing. Always validate the fixed quantities with SIM accounts first, so you can confirm each follower trades the size you intended.

Related articles

• How to enable and use ATM Copy in Replikanto
• How does an ATM Strategy distribute contracts across targets?
• ATM Copy guide