EUReka V Review on ZuluTrade April 2013

EUReka V Review ZuluTrade Trader April 2013

At the time of this review (April 17th 2013), EUReka V were ranked 153th in the ZuluTrade ranking but had already more than $675,000 following them with live account. They’ve only been trading for 20 weeks on ZuluTrade and normally we find this a bit too short to do a full review. However we’ve included them here as one of our visitors suggested them and their popularity is growing. Based on EUReka V’s historical trade data, here’s our review of this UK based trader.

EUReka V Pros:

  • profitable 5 consecutive months
  • follow own signals with live ZuluTrade account
  • low historical drawdown
  • manage risk by using close stops and limiting open orders to maximum 2
  • clear strategy description
  • specialise and focus on 1 pair

EUReka V Cons:

  • still limited trade history
  • unknown if trading style is maintained with many followers

Review Summary:

While we have only 20 weeks to work with, the performance graph of EUReka V so far looks pretty impressive. It shows a very gradual increase. Every month so far has been profitable and especially the past two months have been very successful (which is unlike some other signal providers who’s performance tends to drop off after the first months).

EUReka V’s strategy is clearly explained. They trade the EURJPY pair with stops at 50 pips and a maximum of 2 open trades. Yes, their ZuluTrade graph below shows at 2 occasions 3 trades were opened, but the reason for that is clearly explained and didn’t impact results. In fact most of the time, only 1 trade is opened. Profits are let run and range from 50 to 300 pips. An average of 26 pips profit per trade is very respectable.

The maximum drawdown on open trades so far was 98 pips, which is pretty much what you’d expect with a maximum of 2 open trades and 50 pip stop levels. However, because this is clearly a day trading strategy and losses are taken, we have to look at the EUReka V account drawdown as well (peak to valley). This has been 303 pips so far. This is less than the profit booked per month in each of the past 2 months on ZuluTrade, though is about 17% of the total pips generated so far (and at the time it occurred 43%). So if you started following this trader near the end of January 2013 you’d have been down 303 pips before a recovery was made.

With this type of strategy, trade losses are inevitable but on the other hand, drawdown on open losing trades is limited. Using a 50 pip stop level means hardly any losing trades will be open for more than a day, normally only a few hours. As mentioned above EUReka V is trading the EURJPY pair and the daily movements of this pair are higher than those of the simple EURUSD or USDJPY pairs (since it’s derived from both the EURUSD and USDJPY pairs). On average the daily swings are about 2 to 3 times higher than the EURUSD pair so using a 50 pip stop level is already fairly close. It’s worth noting that the JPY has been fairly volatile (and weakened overall quite a bit) over the past 2 months, which may explain the excellent results over this period.

It’s not clear what strategy EUReka V uses for closing profitable trades (i.e. at what level do they take profit), only that they target more than their stop loss level (i.e. more than 1 to 1). Looking at the individual trades it does look however that they never let a 50 pip profit turn into a loss, as EUReka V seems to move their stop levels to break even once a trade is in 50 pip profit.

EUReka V also follows their own signals with a live ZuluTrade account, which is commendable. It’s also worth noting that this trader has another strategy running on ZuluTrade, EUReka III, which trades the EURUSD pair and while profitable, has by far not been as successful as their EURJPY strategy.

In summary, the results of EUReka V so far have been very good when you take into account the lower risk strategy of using a maximum of 2 open trades with 50 pip stop levels. It’s unlikely losing trades will be carried over so at the end of each day you pretty much know your position when you follow a trader like EUReka V. The main caveat is that so far the trading history has been limited and the recent volatility of the JPY may have been particularly kind to their strategy. So far EUReka V hasn’t gathered many followers yet (though the once they have gave a 100% rating). As many of us ZuluTrade investors know, there’re plenty of examples of popular traders and signal providers failing once they got to the top of the ZuluTrade rankings, often because they changed their strategies and started overtrading to get more commission. Hence only time will tell how EUReka V will fair in the long run, though if they continue the current form, their popularity will grow quickly and we’ll find out soon.

Please note that this ZuluTrade signal provider review is include on our website for educational purposes only. Trading on Forex leveraged instruments is high risk. Never invest what you cannot afford to lose and always contact an independent financial advisor if you’re not sure. Any reviews we include should not be considered as advice or endorsements of these traders.

You can always use our ZuluTrade account settings tool or signal providers comparison tool to assist you further.

EUReka V ZuluTrade Performance Graph April 2013

EUReka V ZuluTrade Pip Performance Graph April 17th 2013

5 Responses to “EUReka V Review ZuluTrade Trader April 2013”

  1. Time is telling us a bit more indeed. Ok, they’re going through a pretty bad spell at the moment, but with day trading strategies and using close stops, over time, that’s inevitable. However we noticed an interesting trade on 2013-05-02 11:45:09. Trade was opened 9 seconds after the Euro zone Rate decision and got closed 47 seconds later for a 50 pip loss. This clearly looks like no consideration was given to the news event (which may cause >50 pip swings) and a trading robot or pre-set limit order opened the trade automatically during the spike of the news event. With a 50 pip stop loss the trade was stopped out almost immediately as the market was still in its initial reaction to the news. This is not great trading practise as it’s more like gambling, and due to the potential trade execution delays and widening spreads with some brokers, even worse with social trading.

    1. Is there a possibility that this was a trade that opened manually during news release in the hope that it will turn positive? Furthermore, going through historical data looks like Eureka has opened trades a few seconds before or after news release. Isn’t that an indicator that he trades manual? I have no idea about trading and robots and I am just trying to figure how to properly analyze trading performance using historical data.

      1. With regards to robots, they often open trades when certain criteria are met. E.g. prices move through a moving average indicator and/or volume increases, etc. Because a lot of the trades I noticed were opened a few seconds after the news event, I made the assumption that the probability was high this was automated trading since the news event made the price move through some indicator level. Opening a trade just before a news event is more or less gambling because the chances are 50/50, unless the trader has a feeling the price action may be more extreme on 1 outcome than on the other one.

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