Absolute Piper Review ZuluTrade Trader September 2014
This trader review was written September 2nd 2014 and looks at Absolute Piper. They’ve been a signal provider on ZuluTrade for 74 weeks and are currently ranked 20th in the ZuluRanking. They also have almost $1,250,000 of real money following them. Based on Absolute Piper’s historical trades and ZuluTrade profile (click here), here’s our review of this Greek based trader:
Absolute Piper Pros:
- sends signals from live trading account (risks own money)
- last 10 months consistent returns with good risk reward ratio
- focuses on 1 (low risk) currency pair
- maximum 4 consecutive open trades (reduces overall risk)
- over 1 year trading history on ZuluTrade
Absolute Piper Cons:
- first 5 months performance poor
- relatively low average pips profit per trade
- relative high drawdown during first 5 months
- not been trading for many followers yet
Absolute Piper’s profit graph (see below) can be broken down into 2 significant different periods. The first 7 months were pretty much break-even, with the initial profits being lost again. However, the next 10 months have shown a fairly gradual increase. Hence Absolute Piper improved their performance over time, and based on the past 10 months are certainly performing much better.
Overall 3,108 pips profit were booked so far by Absolute Piper, which works out at about 183 pips per month average over their full trading history. However, ignoring the first 5 months the average returns increase to 311 pips per month. These are not very large numbers but it only makes sense to compare these by taking into account the risk taken.
Again though, if taken over Absolute Piper’s full ZuluTrade trading history, the average monthly returns are low compared to the maximum overall account drawdown of about 1,000 pips. However, over the past 10 months, the average monthly returns are similar to the maximum drawdown experienced, which is positive in terms of risk reward.
Absolute Piper’s strategy description is brief, though they mention using both technical and fundamental analysis, including trading important economic news releases. It does look like most trades are entered manually and this is not a pure automated trading robot. Maximum open positions mentioned is 4, and only once, 17 months ago Absolute Piper opened 7 trades. Maximum anticipated drawdown mentioned is 500 pips, though the account drawdown in the first 5 months was actually higher than this.
When we look at Absolute Piper’s actual ZuluTrade trade history we can also see that they only trade the EUR/GBP currency pair. This is an important piece of information, since this currency pair normally has a fairly small daily price range. I.e. this should decrease overall risk since even with 4 open trades it’s highly unlikely massive pip movements will occur on a daily basis. So far Absolute Piper’s worst single trade was -173 pips, and this trade was actually open for 14 days.
While their ZuluTrade strategy description and updates doesn’t mention the use of specific stop levels, it does look like some trades are being stopped out at preset stop levels. However, as mentioned, with the EUR/GBP, the daily range are fairly small, so a trader can more easily manage overall risk by manually looking at the trades (even once or twice a day).
Absolute Piper also doesn’t seem to have any preset profit targets for each trade and profits range from about 5 pips to 68 pips, averaging at 7 pips per trade. This number is a little low and your overall profit may be impacted if there’s some significant slippage (> 2 pips). In terms of slippage though, we’ve not tried this trader ourselves, but normally with the EUR/GBP pair (small spread and low volatility) it can be expected to be low. However because Absolute Piper uses FXDD broker it’s worth checking your live results after a few weeks in case you follow this trader and use a different broker.
In terms of Absolute Piper’s broker though, it’s important to mention that they use a full live trading account to send their signals. I.e. they risk their own money as well. They also seem to have had 3 other accounts on ZuluTrade, though none of them have been active for the past year, so they seem to be focussing on this account only. In terms of followers, they’ve made over $32,000 for their top 5 followers so far, and while not rated by many followers, so far their feedback is good. In terms of rankings, they’ve been gradually moving up and getting more followers. However, Absolute Piper certainly haven’t reached the summit in terms of number of followers, so there’s still the caveat that they may change their trading behaviour once they start trading for lots of commissions as well.
In summary, if we look at Absolute Piper’s performance over their full 17 month trading period on ZuluTrade, their overall performance would be very average at the most. However, if we only look at the past 10 months, their results have been very steady with a good risk reward ratio. With only a maximum of 4 open trades and trading the low volatile EUR/GBP pair, the overall risk is fairly contained. In addition, Absolute Piper also use a live account to send their signals. However, with this type of strategy and the relatively low average pips profit, some periods of higher account drawdown are possible in the future (i.e. higher than those experienced in the past 10 months).
Please note that we include these ZuluTrade reviews for educational purposes only. The inclusion of a trader should not be seen as an endorsement of this trader. Never invest money you cannot afford to lose and always consult an independent advisor if you’re not sure whether this type of investing (Forex) is right for you.