For today’s review we have a look at dashidai1, a trader who’s been trading on ZuluTrade for 56 weeks. At the time of writing (May 28th 2014) they were the 2nd most popular signal provider with just over $3 million following them, and ranked 18th in both the ZuluRanking. Based on dashidai1′s ZuluTrade trade history and profile, here’s our review of this China based trader:
- overall profitable
- very good average pips profit/trade
- follow signals with own live ZuluTrade account
- over 1 year trading history
- relative low historical drawdown
- no clear maximum stop levels (total risk not known)
- manage 60 other systems on ZuluTrade (15 bombed)
- fairly limited strategy description and no status updates
- automated trading robot – may require manual monitoring & intervention
Overall, dashidai1′s profit graph (see below) shows a fairly gradual increase over the past year. Only the period from November 2013 until February 2014 was flat, though for the rest, steady profits were booked. In terms of monthly returns, only 2 of the past 13 months on ZuluTrade were negative (including unrealised PnL).
Overall about 9,250 pips profit was made by dashidai1, which is just over 700 pips average per month. However this was achieved against a maximum open trade drawdown of 1,140 pips. I.e. the historical maximum drawdown is less than 2 months average returns.
The strategy for dashidai1 in their ZuluTrade profile is unfortunately not very descriptive (and some of it may have been lost in translation). It does however mention profit targets of between 10 and 100 pips and a maximum of 5 open trades at the same time. Looking at the actual trade history of dashidai1 this seems to be correct. However their original description also mentions a fixed stop loss of -200 pips. While on about 9 occasions this seems to have been applied, on another 11 occasions trades were left open beyond this level. The worst single trade going as low as -657 pips before reversing. Hence the actual current Stop Level is not clear and therefore neither is the total risk when dashidai1 opens 5 consecutive trades.
In terms of pairs traded, dashidai1 trades on all the major USD pairs. While they don’t tend to open all of their 5 trades in the same pair, they do tend to open them in the same direction against the USD. Hence if 5 positions are opened, they normally tend to move in the same direction with the USD.
Average trade time is 3 days, making it a more medium term strategy. The average pips returns of 19 pips per trade however is probably dashidai1′s most outstanding indicator. This is pretty healthy and also means that if any slippage occurs that the impact will be low (however from the ZuluTrade slippage graph it doesn’t look like much occurs anyway).
The fact that dashidai1 follows their own trades with their own live ZuluTrade account is a positive factor. However a more worrying observation is that this trader is running about 60 systems on ZuluTrade, about 25% of which so far have bombed. I.e. it’s highly likely this is just a pure automated EA robot. As with all trading robots, they can perform very well during certain periods, though overall, they’re only as good as the trader managing them. Hence with 60 (or 45) systems to manage, how much manual interventions does this trader make? From the lack of status updates not sure whether it’s a lot, or any at all. I.e. all trades seem to be automatically triggered.
In summary, overall it’s difficult to argue with the historical results of dashidai1 on ZuluTrade so far. Average returns of 19 pips per trade is very good, while so far this has been achieved against a relatively low drawdown. However it seems to be evident that this may be a pure EA trading robot and hence over time may need some careful monitoring. The fact that the ultimate stop level per trade is unclear is also a worry since it means overall risk is unknown. Dashidai1 does however follow their signals with their own live account which may provide some level of confidence that overall risk will be managed, though obviously it’s unclear how much money they risk themselves.
Please not that any ZuluTrade trader reviews are included here for informational purposes only. A review should not be considered investment advice and the inclusion of a signal provider should not be seen as an endorsement. Trading Forex can be highly risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if unsure whether Forex trading or social trading networks are a right way of investing for you.