This review was written on October 26th 2012 when FX Profit Runner had been a signal provider on ZuluTrade for 76 weeks. At this time this American based SP was ranked 68th in the ZuluTrade rankings. Based on the historical trading history (view FX Profit Runner full history here), this is our review:
FX Profit Runner Pros:
- clear strategy description
- low historical drawdown (i.e. low risk)
- comprehensive status updates
- consistent returns over time
- licensed professional trader (unconfirmed)
FX Profit Runner Cons:
- do not trade with own money
- this year’s profitability down on last year’s
A return of 3,145 pips over 76 weeks may not sound much but this has been achieved against a maximum account drawdown of 288 (again we use the account level instead of the open position drawdown of 145 because FX Profit Runner is a short term trader and they may accumulate a series of losing trades). I.e. this return has been achieved with taking a small amount of risk.
With regards to profitable months, to date (and we include October 2012) 13 have been winning and 5 losing months. So more winners than losers but not the exceptional returns some ZuluTrade followers looking for high short term returns might expect. What is positive though is that FX Profit Runner doesn’t try to overtrade at the end of the month to try and recover (and hence get their commissions). They stick to their strategy and take some months as losers. Saying that, the worst performing month was only -137 pips while the best one returned 630 pips.
Looking for a slight negative in the results one might argue that the first 6 months returned as much as the next 12 months. Hence profitability has decreased (halved in fact), though FX Profit Runner did open more trades during that period as well (i.e. perhaps more risk was taken in the first 6 months or the markets were just more profitably for their system). Nevertheless it’s difficult to see how anyone who would have followed this ZuluTrade SP for a minimum period of 3 months would have lost any money. I.e. FX Profit Runner is certainly a signal provider that needs to be judged over a few months and not one for those expecting exceptional returns (with the associated higher risk) over a few weeks.
Their strategy trades high volatility break-outs is very clearly explained in their profile and in their additional communications. Looking at the historical trades for FX Profit Runner, the strategy description matches the actual trades. Only once 11 positions were opened at the same time, though this has now been capped to 5, and over the past year only twice 5 positions were opened at the same time, leading to a low open positions drawdown of 145 pips. Stop levels are very closely managed and range from 20 to 120 pips, though most of the time they’re in the lower part of that range. The majority of profit taking happens between 10 and 50 pips, though again there’s no fixed profit taking level, which seems to suggest this ZuluTrade signal provider adjust levels according to the current market conditions. Trades are left open an average of 2 to 3 hours, so very short term and hence this is not a signal provider that leaves trades open for a long time or even overnight. FX Profit Runner’s trading strategy and style also doesn’t seem to lead to particularly high slippage (we even experienced positive slippage).
While FX Profit Runner doesn’t communicate often, their communications are very thorough and provide a good insight in the thinking process of this trader. They also claim to be a professional trader carrying a Series 3, Series 34, and Series 30 license. Unfortunately the way ZuluTrade operates this cannot be substantiated, though their trading style seems to suggest that they watch the markets and apply a professional attitude to Forex trading and risk management. They do however not trade with their own money on ZuluTrade.
Below are the numbers for FX Profit Runner using the past 12 months performance ran through our ZuluTrade risk & account settings calculator tool. Again please not that past results are not necessarily indicative of future return.
Please not that this review is include here for educational purposes only and does not constitute investment advice. Any ZuluTrade SP reviews are not endorsements of these signal providers. Investing on ZuluTrade is very risky, so you should always consult an independent financial advisor if you’re not sure this is for you. Never ever invest money you cannot afford to lose.