For this review we have a look at NEMER88, a trader with 55 weeks of history on ZuluTrade. At the time of writing (April 15th 2014) this signal provider was ranked 7th in both the ZuluRanking and in terms of popularity with just under $2 million following them. Based on NEMER88’s ZuluTrade profile and trade history, here’s our review of this trader based in the United Arab Emirates:
- overall profitable
- over 1 year trading history
- very good average returns/trade
- do not trade from live account
- fairly high historical drawdown
- limited strategy description
- no clear maximum stop levels (total risk not known)
- potentially high future drawdown
The profit graph for this ZuluTrade trader (see below) shows on overall increase, though the increase isn’t very gradual. In fact the first 5 months were pretty flat, followed by a significant increase for 4-5 months, though the past 3 months have again been flat. This is also reflected when looking at the monthly performance for NEMER88, with about half of them being profitable. Overall though 10,676 pips profit was booked so far, which is of course pretty good. However, over half these pips were booked in just 2 months (September and November 2013). Because the returns are not very consistent we should not really use them to extrapolate expected average monthly returns.
NEMER88 describes their strategy on ZuluTrade as “depending on the change in the market volatility”, stating that each position has a definite stop level and target profit. They also state 9 years of Forex trading experience. NEMER88 mentions a maximum of 10 positions should be allowed, though normally 6 will be opened. Looking at the trade history, only once 10 trades were opened, though on 12 occasions more than 6 were opened.
Since the strategy description is pretty non-descriptive, we’ll have a closer look at NEMER88 actual ZuluTrade trade history and statistics. In terms of pairs traded, half the time this were the GBP/USD and EUR/USD pairs, though for the rest NEMER88 trades on pretty much every other pair as well. Average trade duration is 6 days, winning percentage 73%, maximum open trade drawdown was -2,060 pips and worst single trade was -893 pips. All the statistics for NEMER88 clearly point to a long term strategy. When multiple trades were opened in the past, they were not all opened in the same pair (i.e. not Martingale), though they were pretty much all opened in a similar direction for the USD pairs. Hence while not necessarily all opened trades will move in the same direction, for the majority they will.
Hence, while NEMER88 mentions the clear use of stop levels, with the worst single trade in their ZuluTrade history going as low as -893 without being stopped out, it’s not clear what the ultimate stop level being used is. Some trades at -401 and -265 were stopped out, but for the rest, plenty of trades went into large drawdowns without being closed out. Again, this clearly supports the fact that this is a long term strategy, though it also makes it very difficult to know your maximum risk. With a maximum of 10 open trades and no clear maximum stop levels, you could be risking a lot.
But, while this ZuluTrade trader lets trades go into significant drawdowns, they also take reasonable profits when the trades go their way. The best single trade was 332 pips, while the average profit per trade is 34 pips, which is a very good figure on ZuluTrade.
In summary, NEMER88 clearly follows a long term strategy. Trades can go into significant drawdown, though profits are left to run as well. Because the maximum risk is pretty much unknown, you’re totally depending on this trader’s risk and money management techniques. Again, it’s always much more difficult to trust the money management approach of a trader who sends signals from a demo account, as is the case with NEMER88, instead of someone sending signals from a real money account.
Please not that any ZuluTrade trader reviews are included here for educational purposes only. The inclusion of a trader should not be seen as an endorsement of that trader. Trading Forex can be highly risky. Never invest money you cannot afford to lose.