A review of SteadyCapture (v) was kindly requested by one of our visitors. At the time of writing this review (June 18th 2013), this trader had been trading for 60 weeks on ZuluTrade. They’re ranked 48th and had just over $1.1 million of real money following them. Based on the historical ZuluTrade trade history of SteadyCapture (v), here’s our review of this Canadian based signal provider:
SteadyCapture (v) Pros:
- very consistent returns (13 out of past 14 months profitable)
- follow their own signals with a demo account
- seem to trade manually and have applied solid money management approach so far
- over 1 year trading history
SteadyCapture (v) Cons:
- not clear what stop levels are applied – total risk unknown
- historical risk reward not great
The overall profit graph (see image below) shows a fairly “steady” increase for SteadyCapture (v) with two large-ish drawdown periods. Of the past 14 months on ZuluTrade, 13 were profitable with an average return of about 135 pips per month (i.e. consistent monthly returns). These results were achieved for an open trades drawdown of 542 and an account drawdown of 620. So while the drawdown figures are not that high, in the context of the average returns, they actually are a bit high since they’re more than 4 times the expected monthly returns. This is important to consider when evaluating risk reward for this trader.
SteadyCapture (v) describe their strategy as trading a variety of currency pairs using high probability trading systems (though which ones isn’t mentioned). This ZuluTrade trader mentions their experience as a professional trader, their money management skills and the fact that the main aim is to deliver consistent returns over time while trying to keep drawdowns shallow and short. Looking at the actual trade history, it’s clear SteadyCapture (v) trades about every single pair available including the Mexican Pesos on one occasion. The maximum open positions recommended in the strategy is 7 and this occurred one time so far. Nevertheless, regularly 3, 5 or 6 positions are opened at the same time. While they’re normally not all in the same currency pair, they’re normally in the same direction. So with 6 open positions, a sharp move in the market can mean a significant drawdown or loss.
With regards to stop losses, there’re no fixed levels mentioned in SteadyCapture (v)’s strategy and the trading history also doesn’t give much insight into this. The worst level a single trade went into drawdown was -345 pips (before rebounding into profit). In fact, we could hardly find any trades which were closed at their lowest level (which would indicate they were stopped out). It certainly looks like this ZuluTrade trader watches the market and when they mention “keeping drawdowns shallow and short” they achieved this by monitoring the combined trades and the market real-time. We notice some ‘trade cycles’ were actually closed in a loss, i.e. this ZuluTrade signal provider doesn’t leave trades open indefinitely until they get back into profit. This also seems to indicate that SteadyCapture (v) applies money management principles since in the past they protected their account from higher potential drawdowns and losses by booking some smaller losses.
While so far this strategy has proven to be fairly consistent, for a follower you need to have a high level of trust in SteadyCapture (v) because their full money management approach seems to be based on them watching and trading the markets live. I.e. there’re no prescribed stop levels at trade or account level, and so far, during the times when the highest drawdown levels occurred the markets turned in the favour of this trader (i.e. trades were not stopped out). Hence it’s unclear how far SteadyCapture (v) will let the drawdown go before closing all trades. This makes it difficult for a follower to protect their ZuluTrade account. With a lowest previous single trade drawdown of -345 pips, do you add a maximum stop loss per trade of -400, though with a maximum open trades to 7 that would mean risking 2,800 on a single trade cycle if this ZuluTrade trader blows all stops. Or, do you protect your account with ZuluGuard for a maximum capital loss, and if so, at what level. Some indication on this in the strategy would be helpful.
The fact that SteadyCapture (v) follow their own signals with a demo account is however a positive sign (and may built some level of trust). They also communicate with their followers (e.g. currently they’re mentioning one of the open trades in drawdown should be considered a long term trade). SteadyCapture (v) is also known as 3 other signal providers on ZuluTrade: Strict Income, SteadyCapture and Shortbread. All are in profit though some not actively traded anymore.
In summary, while the results of SteadyCapture (v) have been fairly consistent so far and they seem to have applied a solid money management approach to date, the risk reward for this ZuluTrade trader needs to be seriously considered. Without knowing how much you risk per trade cycle, a lot of trust is being placed on this trader’s real-time trading skills to keep the drawdowns and potential losses under control. In addition, so far they’ve stayed out of the ZuluTrade limelight, having traded for a still fairly limited number of followers. As we all know, there have been plenty of examples on ZuluTrade of trader’s who faltered and abandoned their money management principles once they got to the top regions of the ZuluRankigs.
Please note that this ZuluTrade trader review is included here for educational purposes only and does not constitute investment advice. The inclusion of a trader isn’t necessarily an endorsement of that trader. Trading leveraged Forex instrument on ZuluTrade can be highly risky. Never invest money you cannot afford to lose and always contact an independent financial adivsor if you’re unsure whether this type of investing is right for you.