Review of denganyouqianle - ZuluTrade Signal Provider

Denganyouqianle Review ZuluTrade SP October 2012

At the time of writing this review, October 23rd 2012, this Chinese based ZuluTrade Signal Provider has been trading on ZuluTrade for 75 weeks. At this time denganyouqianle are ranked 8th in the ZuluTrade rank and joined 2nd in terms of the amount of money invested in them. You’ll find the full denganyouqianle profile and historical performance here on the ZuluTrade website. Based on these here’s our review:

denganyouqianle Pros:

  • consistent returns with only 1 losing month to date
  • stops levels seem to be managed and monitored
  • relatively low historical drawdown
  • looks like this trader ‘trades’ the market and doesn’t use an automated system

denganyouqianle Cons:

  • do not trade their own money
  • no clear description of the strategy
  • last 2 months limited communications
  • only 3 star rating by followers

Review Summary:

To date denganyouqianle has returned 5,472 pips for a maximum historical drawdown of 869 pips, which is a very reasonable return on the risk taken (please note we use the account level drawdown here from the profits chart as it’s higher than the open positions drawdown of 647).  Another positive point when looking at this ZuluTrade SP’s returns is that the profits graph shows a fairly gradual increase in returns and to date only 1 out of 17 months was a losing month.

Identifying which strategy denganyouqianle uses is unfortunately very difficult since they don’t have a proper profile description and neither is it being communicated to their followers via the comments. What’s clear is that they only open 4 trades at the same time. Sometimes all 4 are in the same currency pair and direction, though not always. I.e. this is not a strategy which seems to open up additional positions against already losing ones.

With regards to the Forex pairs traded it’s mainly EURUSD, GBPUSD and AUDUSD. Looking at the historical ZuluTrade data it’s unclear what the entrance criteria are for the trades as it looks like a combination of methods are used (breakout, support, resistance, …). With regards to stop levels it looks like they’re managed depending on market conditions. I.e. they’re not fixed at the same level all the time and some trades are closed at small losses (e.g. 15 or 30 pips) while other trades are left to run with wider stops. The worst drawdown of a single trade to date was 241 pips.

This type of trading behaviour, together with the communications left by denganyouqianle in the past (just click older and use the translate button to read them) make us believe that this trader actually watches the market when they trade and don’t just blindly use an automated system. denganyouqianle also doesn’t seem to over-trade. I.e. this signal provider isn’t putting trades on every single day. Good traders know that some days are best left alone and it’s better to stay out of the market than to put on a trade just for the sake of it. Again without a proper profile or strategy description we can only make these deductions from the trading style and results we see (and hence they’re not substantiated).

denganyouqianle only has a 3 star rating which is slightly surprising seeing the returns have been fairly consistent and there hasn’t been any massively large drawdown. This signal provider also doesn’t seem to enter trades during news events or busy periods and hence the slippage we’ve noticed to date has been low.

Below is an example of account risk settings you may consider when following denganyouqianle with your ZuluTrade demo account. These are created use our ZuluTrade account settings tool (look on the tool page for further info):

Potential ZuluTrade account settings for denganyouqianle

Potential ZuluTrade account settings for denganyouqianle SP

Please note that a review of a signal provider isn’t an endorsement of this signal provider. Our ZuluTrade SP reviews are included here for educational purposes only and in no way do they constitute investment advice. To invest in denganyouqianle you need to open a ZuluTrade account. Please note that trading Forex is very risky and you should consult a financial advisor if you’re not sure whether these investment platforms are for you.

6 Responses to “Denganyouqianle Review ZuluTrade SP October 2012”

  1. I think the main problem with denga as you pointed out is his lack of communication and his weak English language , apart from that he seems like is working hard to achieve his profits , he was number one for some time , then he dropped , and now he is up again on Number 9. Good job.

  2. thats true….communication can be a problem, but imo, does not matter as far as he gets to trade well and trade good and in the top 10. there are other good traders in the lower ranking. 😉
    i do not see the rating by users as criteria for a traders being good – more trading history to be profitable!! and to not hold open positons on luck that eventually the market will turn along with them.

    1. Hi, just to make some clarification first, because we review a trader (as mentioned on the site), it actually doesn’t mean we invest in them ourselves. We review a range of traders for educational purposes to show the process we go through when selecting signal providers to follow. Because we’re not regulated we cannot disclose who we’re following ourselves (as that would be considered advise).

      However, in the case of Denganyouqianle I remember we actually invested in them (in the past so ok to disclose). I just had a look at the details and we got out 14th December 2012 (after taking the losses that day). We were following them for a while and getting out then actually meant we still got out at profit. Looking back at the figures I seem to remember the reasoning for getting out at the time was that those losses at those levels were out of sync with the strategy at the time. Also, once we’ve made some money from a trader for a while, the last thing we want to do is give it all back or worse, end up losing (hence used stop levels at signal provider level – easier now with ZuluGuard). Just looking at the figures now, in hindsight, we probably would have recovered from the losses we took on the 14th later in December, but would have incurred much worse ones in January when they lost a lot in January. When we leave someone because we feel they changed the way they were trading we normally don’t look or go back. Hence didn’t follow them but it looks like the massive January losses were due to (stubbornly) hanging onto trades when the JPY was weakening. Obviously because they didn’t trade with their own money they didn’t have to worry about the drawdown. Still, looks like they eventually took the losses (although around 500 pip area seems to be the standard ZuluTrade SL level) and are trying to recover.

  3. Hello there,

    right right, I am sorry to mislead, i was not looking for a investment recommendation but more of an analysis and comments.
    How about the new ranking what is your comments on it now? Today’s picture is totally different, I might say …

    1. Hi,

      Yes, we noticed a new number one as well and actually wrote a (hopefully useful) review of them yesterday: Forex Sleep Mode Review. It shows that the main reason for them being top was actually by carrying over some profitable trades from 2012. Their performance this year has not been very impressive and based on that alone they wouldn’t be top.

      While I’m sure ZuluTrade tries their best to create a useful ranking, it’s never going to be easy. Whichever way they configure their ranking parameters there’re always going to be some traders show up near the top who don’t necessarily deserve to be near the top. The ranking only uses concrete numbers as input and hence is purely objective. I.e. it doesn’t analyse trading styles, etc.

      Hence it’s not really best practise to just pick the top ranked ones. Investors should always try and do their own analysis. In addition different traders/signal providers will be suited to different followers (because everyone will have a different risk profile).

      We always do our own analysis. Ranking the ZuluTrade traders by “amount following” or “rating” is normally a better starting point since those are more subjective.

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