At the time of writing (June 21st 2013) this review, which was also suggested by one of our visitors, BREYYY had been trading on ZuluTrade for 90 weeks (so fairly seasoned). They’re ranked 104th and have just over $540,000 following them. Based on BREYYY’s ZuluTrade profile and trade history, here’s our review of this Bulgarian based trader:
- fairly consistent returns (19 out of 21 months profitable)
- apply clear stop levels and close trades in loss if deemed necessary
- trading on ZuluTrade for almost 2 years
- did not panic/overtrade after a run of losing trades
- do not trade with their own money
- maximum number of open trades or maximum stop level unclear (hence total risk unclear)
- no communications
When you look at BREYYY’s pips profit for the past 90 weeks (see below), you’ll notice a nice steady increase for the first 9 months, followed by a dip, but a nice steady recovery after that. When looking at the performance per month, 19 were profitable so far, with only 2 losers. However, July 2012, with -585 pips was a significant loser, seeing as the average monthly returns are only slightly over 150 pips. While the gains for the 2 months after these losses were fairly small, looking at the trade volume will tell you that BREYYY actually hardly traded those 2 months.
Looking at the actual trades which caused these relatively significant losses in July 2012, it’s interesting to notice they were caused by 3 separate trade cycles of respectively 2, 3 and 3 concurrent positions. I.e. those losses weren’t caused by opening lots of positions in the same direction. They were just caused by trades being stopped out at still respective stop levels of between 90 and 130 pips. So what does this tell us about BREYYY’s trading style and strategy. Firstly that they apply stop levels and will close trades in a small-ish loss before creating large drawdowns and potential exponential losses. Secondly, when they had 3 losing trade cycles in a row, they didn’t panic and start opening lots of extra positions or over-trade to try and quickly recover. If we ignore the 2 subsequent months when BREYYY didn’t trade then they gradually recovered over a 3 month period. This looks like a sound and positive trading approach in the sense that this ZuluTrade signal provider stuck to their principles and continued with the same strategy they were using before.
The maximum drawdown for BREYYY so far was 615 pips on open trades and 761 pips at account level. That’s about 20% of the profit generated to date (which is fairly healthy) but at the time it occurred was more like 40% of the profit generated at that time on ZuluTrade.
BREYYY describes their strategy as “using mostly chart geometry with underlying market psychology and fundamental analysis”. The fact that they mention the words fundamental analysis in the description makes us believe that they don’t just purely use an EA (trading robot) as suggested by the ZuluTrade EA icon in their profile. BREYYY’s trades also seem to be entered within similar time-frames which also supports the view that they trade manually and not just automated.
The strategy description is however lacking any information on the maximum number of trades required to follow BREYYY or the maximum stop level they apply. So far the maximum trades opened at the same time was 14 in April 2012. While these were in 5 different pairs, they were all in the same direction and the worst trade went to -59 before the market reversed. There were also 9, 11 and 13 open trades at the beginning though for the rest the maximum seems to be 6 with 7 only occurring once this year. Mostly 2 or 3 concurrent trades are opened by BREYYY per trade cycle. The worst a single trade was drawdown before reversing was -170 and the worst level a trade was stopped out at by this ZuluTrade signal provider was at -169 pips.
The reason for mentioning all these numbers is that without being given any indication of maximum open positions and maximum stop loss, in case someone wants to follow this ZuluTrade trader, they need to make some assumptions if they want to protect their account. For example, you might assume a maximum stop level of 200 and allow 14 open trades (since this was the maximum so far). While this sounds fairly reasonable as approach based on the historical figures, it would mean a risk of 14×200, or 2,800 pips if all trades were opened and stops were hit. I.e. that risk would be very high for the expected returns. Allowing 6 or 7 open trades would reduce that risk but not clear if that matches BREYYY’s strategy (even though not more than 7 were open in 2013).
In summary, so far BREYYY has made some fairly consistent returns for a relatively well managed drawdown. They proved that after a losing run they didn’t panic and were gradually able to recover. However, their lack of indication on stop levels or maximum open trades means followers would need to put a lot of trust in this ZuluTrade signal provider since the losses if they abandon their current approach would be very large compared to the anticipated returns. The fact that they don’t trade with their own money, don’t communicate and haven’t traded for many followers yet (which has led quite a few traders to change their behaviours on ZuluTrade) means attaining that critical trust level is much more difficult.
Please note that any ZuluTrade trader reviews are included on the Social Trading Guru website for educational purposes only. The inclusion of a signal provider is not necessarily an endorsement of this provider. Trading on ZuluTrade and with leveraged Forex instruments can be very risky. Never invest money you cannot afford to lose. Always contact an independent investment advisor if you’re not sure whether these types of investments are right for you.