Back from an extended break, so the ZuluTrade trader reviews will be starting again. While I normally don’t like reviewing traders with limited trading history, a few people have asked me for an opinion of Fibotradingchris. Easy to see why, since within a short space of time, this trader managed to get to the number 1 position in the ZuluRanking. At the time of this review (July 31st 2014) Fibotradingchris was also the second most popular trader on ZuluTrade with just under $7 million following. All of this in a period of only 23 weeks. Based on Fibotradingchris’ (limited) trading history here’s our review of this Greece based signal provider:
- overall very profitable
- low drawdown compared to average profits
- uses clear stop levels
- interacts actively with followers
- generate good actual $ returns for top followers
- does not trade or follow signals from live account
- most profits booked in first few months
- still very limited trading history
Looking at Fibotradingchris’ profit graph we notice a steep increase in pips from March until May 2014, followed by a flatter performance for June and July. In total more than 20,000 pips profit was booked by this ZuluTrade trader so far, which averages at about 3,700 pips per month (a very high number).
These results were achieved against a reported open trade drawdown of just over 2,000 pips. However, taking into account closed trades, we have to assume that Fibotradingchris’ actual historical account drawdown level was likely a little bit higher. Even bearing this in mind, the average pips profits per month so far are higher than the historical drawdown, which is very good. I.e. it means that “historically” the profits of 1 month, would have covered any drawdown.
So how were these results achieved? Looking at the strategy description in Fibotradingchris’ ZuluTrade profile unfortunately doesn’t provide any insight into their trading strategy and approach. It does however mention the suggested lot sizing and mentions the use of stop levels (around -100 pips).
When we look at the actual historical trades it’s clear that -100 is currently used as the widest stop level. As we mentioned before in other ZuluTrade trader reviews, we’re not a big fan of traders who let all their trades go to a fixed arbitrary stop level. Top traders will watch the markets and if they feel sentiment has changed (e.g. based on news or data releases), adjust their positions accordingly. I.e. they may take smaller losses instead of waiting for their stop levels to be hit. While most of Fibotradingchris’ losing trades seem to be stopped out at the -100 level, at least a few are closed at smaller losses. While it’s still a very small amount it therefore might suggest Fibotradingchris monitors the positions manually and adjust if deemed necessarily.
In terms of profit targets, most of Fibotradingchris’ recent profitable trades seem to be closed around the +25 level. However some are closed for smaller or higher profits. What’s noticeable though is that in the months where they booked most of their profits on ZuluTrade (March-April), quite a few trades were closed at profit levels of between 70 and 130 pips. However, in the two most recent, less profitable month, +50 seems to be the maximum profit booked on a single trade (and most are +25). This may be a sign that Fibotradingchris changed their strategy, and this has impacted the performance. Certainly something to monitor going forward.
Fibotradingchris currently opens up to 30 consecutive trades and historically they’ve traded about every currency pair tradable on ZuluTrade. Personally I normally prefer traders who focus on one or a few currency pairs and who pick a few trades a week, instead of a trader who trades every single pair available and has trades open all the time. However, some successful traders open multiple pairs as part of more complex hedging or correlation strategies, so this is very much a personal opinion.
As we mentioned before, when a ZuluTrade trader trades many exotic pairs (e.g. NZD/JPY, NZD/CAD, GBP/JPY, …), do check your slippage when you use a different broker than the trader because the spreads can differ quite significantly between brokers on these pairs.
When all 30 trades are opened it looks like only a maximum of 3 trades are opened in the same pair. However, historically the direction of most of the pair combinations is the same when many trades are opened (e.g. all for or against the USD or JPY). I.e. while there will be some hedging going on between the pairs, it’s likely that most will be moving in a similar direction. I.e. it’s possible that one strong market move may lead to most of the 30 trades being closed out at their -100 pip stop level. However, arguable -3000 is still less than the historical average monthly profit.
Fibotradingchris currently sends their signals from a demo account and hence do not risk their own money (they just risk their future ZuluTrade earnings). However Fibotradingchris’ top 5 followers have made over $35,000 between them so far. This is a very good number, especially taken into account that this trader is relatively new on ZuluTrade. In addition, their trader rating from 304 live followers is 81% at the moment, which again is very high. Fibotradingchris also actively posts status updates and interacts with followers who post messages on their feed. This seems to be a sign that this trader does follow the market and is active most days.
In summary, the results Fibotradingchris has achieved in a short period of time on ZuluTrade are very good. Average monthly returns so far have been higher than the historical drawdown. In addition they’ve made some significant money already for their live followers. However, as we mentioned before, 5 months is still a very short time frame to properly evaluate a trader’s performance. Especially when most of the profits were achieved in the first 3 months. The next 3 to 6 months will provide us with much better data to evaluate this trader, especially now that they’re top of the ZuluRankings and Fibotradingchris is trading for many more followers (and potential commissions). There’re plenty of examples of ZuluTrade traders with exceptional initial results, who failed to maintain their early promise. Time will tell whether Fibotradingchris falls into that category or whether they can maintain their top ranking.
Please note that any ZuluTrade trader reviews are included here for information purposes only. The inclusion of a trader isn’t to been seen as an endorsement of that trader. Forex trading can be highly risky. Never invest money you cannot afford to lose and always consult an independent advisor if you’re not sure whether this type of investing is right for you.