ZuluTrade Tool: Compare Signal Providers Performance
With the massive amount of Signal Providers (SPs) on ZuluTrade, it’s often difficult to compare them ‘like for like’. Just looking at their return in pips doesn’t give you the full picture, since it doesn’t take into account the risk taken by the Signal Provider (SP) to achieve their return. Below is a simple tool which can be used to compare the historical performance of ZuluTrade Signal Providers, taking into account both past returns and risk (in terms of drawdown).
The measure used to compare the Signal Providers is ‘Optimum ROI / Month‘. This is the return in % per month you would have made if you invested/allocated the maximum drawdown the Signal Provider incurred during the period (i.e. with hindsight you invested just enough). Obviously this is an unrealistic assumption (also because we don’t take into account margin calls), though because the assumption is made for every Signal Provider we compare, it does provide us with a value we can use to compare them taking into account both risk (drawdown) and reward (profit). This tool also lets you use the data for any given period duration, meaning you can take the data for a period during which the Signal Provider’s strategy was consistent.
The following restriction applies:
“The Signal Provider only traded instruments with USD as quote currency (e.g. EUR/USD, GBP/USD, CAD/USD, AUD/USD, …). The calculations will not be relevant for Signal Providers who for example trade AUD/JPY or EUR/JPY). However, you’ll notice that the majority of Signal Providers fall within this category.”
Click Here for an example of where to locate the Signal Provider data used within the ZuluTrade interface.
Please note that these calculations use past performance results and are therefore not necessarily indicative of future performance. This tool is only included for information purposes and use with demo accounts only. There’re significant risks involved in trading Forex and ZuluTrade and you should seek advice of an independent advisor if you trade with real money and have any doubts.