This trader review was written on January 28th 2013. On this day, Claudia was ranked number 3 in the ZuluTrade ranking, though they only had $120K following them. This Hungary based trader has been a signal provider on ZuluTrade for 119 weeks and based on Claudia’s historical trade history (click here to view), here’s our review:
- profitable over time
- very high historical drawdown
- strategy description doesn’t match the actual trading
- no stop levels used -> high risk
- do not trade with their own money
Looking at the profit graph (see below) you’ll notice that while the direction is upwards, and hence Claudia has been profitable, the graph isn’t very smooth. At several occasions large drawdowns did occur. In fact the maximum drawdown to date was over 20,000 pips, which is very high, even considering the ZuluTrade signal provider posted a profit of over 64,000 pips to date.
Looking at Claudia’s performance per month you’ll notice that this trader booked profits for every single month to date. While this looks very impressive, if you include the unrealised PnL you’ll get a slightly different picture. In fact 10 months would have been losing months. While this trader does hang on to losing positions over time they also hold on to winning positions which they can close out at the end of a month in which their results wouldn’t have been positive otherwise (i.e. to ensure commissions get paid).
If you look at the current open positions levels you’ll notice in total it’s about break-even. However if you look at the details of the open trades, you’ll notice that Claudia has +10,000 pips in 5 profitable GBP/NZD trades which they opened in May 2012. However since then they accumulated a similar amount in losing open trades. In fact if you’d started following this ZuluTrade signal provider on January 1st 2013 you’d be sitting on -4,000 pips of open trades, which far off-set the profits they booked so far this month (just under 2,000 pips).
Claudia’s strategy is described as using two different robots, one aggressive and one conservative. They suggest using a stop level of 95 pips, though looking at the actual trading results this stop level doesn’t seem to be used at all. In fact it’s not clear if any stop level is being used since single trades regularly get drawdown over 500 pips, the worst one even over 4,000 pips. Hence if you’d follow their strategy description and use a stop level of 95 pips, you would actually be losing quite a bit with this signal provider since their actual strategy seems to be to hold on to trades longer term until they turn profitable again.
The majority of their trades are in the more volatile GBP/JPY and GBP/NZD pairs. It’s worth nothing that the spreads on these pairs are higher than the main pairs (e.g. EUR/USD or USD/JPY) and that the slippage is also likely to be higher (depending on the broker you use).
This certainly is a very high risk signal provider and the fact that only $120K is following Claudia means not that many ZuluTrade followers are currently willing to take on this risk. However, please note that they’re currently 3rd in the ZuluTrade ranking, which means that they may easily be used as substitute for those using ZuluGuard with the setting ”Replace the trader with an equal or higher ZuluRanked trader”.
Please note that this ZuluTrade trader review is included here for informational purposes only. Trading on social trading networks with leverage forex instruments is very risky. Always consult an independent financial advisor if you’re unsure whether this type of investing is right for you.