This review is being written on October 30th 2012 at which time Artem1584 is ranked 1st in the ZuluTrade ranking and has just under $500,000 balance of live accounts following their signals. At this time this Russian based Signal Provider been trading 52 weeks on ZuluTrade. Based on the historical trade data for Artem1584 (click here to access on ZuluTrade) here’s our review:
- high pip returns
- follow their own signals with real money account
- SL strategy recently changed significantly
- not much data to evaluate the new strategy
- medium to high historical drawdown
- almost no communications
- number of required open trades not indicated (and increased over time)
10,000 pips profit in 1 year on ZuluTrade is a good return. Only looking at closed trades, all 12 months have been profitable for Artem1584, though if we include unrealised PnL, April 2012 would have been a losing month. These result have been achieved against an account level drawdown of 1965 pips (slightly more than the open trades drawdown of 1830 pips). At the time the maximum drawdown was reached this level was 21.3% of the realised profit. While we wouldn’t say Artem1584’s drawdown levels are exceptionally high they’re still high enough to be given some serious consideration.
Looking at the time of this drawdown (28th September 2012) we noticed that 16 trades were opened and while they were not all opened in the same currency pair they were all open in USD pairs, favouring a higher USD. However, while the overall 16 positions all depended on the same direction of the USD, looking at the timings and entry levels of these trades it doesn’t look like Artem1584’s strategy here was just to keep on opening extra positions in the same pair until the market eventually turned. I.e. we see this as a positive since we’re not fans of strategies that keep adding to losing positions as they can lead to very high drawdowns.
Artem1584’s strategy is described in their ZuluTrade profile as a combinations of systems, short term and long term as well as manual and automated. Looking at the actual trades it’s also not easy to find a clear trading pattern so this SP does seem to use indeed a number of different entry and exit criteria. You may notice that this ZuluTrade signal provider sometimes opens up to 3 to 4 positions in the same pair in the same direction within a few minutes. This is not necessarily something negative and because you cannot close partial positions on ZuluTrade some traders have to use this approach if they want to phase out their positions (e.g. sell part at 20 pip profit, another part at 40 pip profit, etc.). You just have to consider this when sizing your investments in the account settings.
If we look at the Best-Worst graph under the Performance tab we can notice though that the stop levels seem to have decreased over time. In addition, after the large drawdown from September with a worst trade hitting -144 pips, Artem1584, in their only communication to date, have notified their followers that the Stop level is now set at 35 pips per trade. I.e. their ZuluTrade strategy has changed and while top traders adapt their strategies over time to match the market conditions, this is quite a significant change (from SL > 144 to 35). Target profits are currently 35 to 100 pips and have over time always been higher than the SL levels too (hence the healthy profits with only a 55% winning ratio).
The number of open trades followers should allow is nowhere explained in Artem1584’s profile or communications. The worry here is that up until September the maximum was 14 trades, or even 11 when looking at past 6 months, though it then increased to 16 without any notification. No doubt a number of followers will have been caught out by this and managed worse results for September if they restricted the number of open trades allowed based on historical figures. Again there’s no indication which number of open trades a follower should allow with the new strategy.
With Artem1584 changing their strategy significantly over the past month it makes this signal provider much more difficult to evaluate. The new strategy is only 1 month old, though the results for this month are pretty exceptional, with a return to date of over 1300 pips against a drawdown of about 600 pips over the month. October 2012 has also seen the highest trade volume for Artem1584, though with this new strategy that’s not too surprising. Because of the tight stop levels more trades will be closed as losses, but to date it’s clear that the profitable trades more than make up for this. Anyone following this ZuluTrade SP need to consider though that with this signal provider’s current strategy some losses will be inevitable and hence you need to evaluate the performance over time and not just over a few days. The fact that Artem1584 follows their own signal with a live ZuluTrade account can certainly be seen as a positive factor as well, though there’s no indication how much they invest themselves.
It’ll be interesting to see whether the new strategy keeps performing well over the next few months and how Artem1584 will perform now that they managed to get to the number 1 spot in the ZuluTrade ranking and undoubtedly will start getting a few more followers because of this. Below are some potential account settings calculated using our ZuluTrade risk & account settings tool using Artem1584’s results of the past 52 weeks. Please note that past results are not necessarily indicative of future performance.
Any ZuluTrade signal provider review we include on our website is included for educational purposes only and does not constitute investment advice (or is an endorsement in any way of the SP reviewed). Trading Forex instruments with ZuluTrade is high risk and you should never invest without consulting an independent financial advisor if not sure whether this is for you.