Azar Consulting Review ZuluTrade SP February 2013
This ZuluTrade trader review was written on February 8th 2013. At this time Azar Consulting was ranked 45th in the ZuluTrade rankings. In terms of popularity they were 10th with almost $2 million following. This South Africa based signal provider has been trading on ZuluTrade for 32 weeks. Based on Azar Consulting’s historical performance data, here’s our review:
SELL GBP Azar Consulting:
- profitable every single month to date
- low historical drawdown
- clear strategy description which matches trading style
- do not overtrade
- good communicator
SELL GBP Azar Consulting:
- do not trade with their own money
- still limited trading history
Looking at Azar Consulting’s performance graph (see below) you’ll notice a fairly gradual increase since they started trading on ZuluTrade in June 2012. Every month since then has been profitable with an average of about 200 pips per month.
Azar Consulting’s strategy (click here to read on their ZuluTrade profile) and system trades the EURUSD pair using a risk reward ratio of 1 to 1 with stop level and target profit set at 100 pips. I.e. they open 1 position and in most cases they leave that position open until it reaches a 100 pip profit or loss. However this ZuluTrade trader sometimes also closes the position earlier (either in profit or loss) depending on their system’s indicators or news events. I.e. while on first impression Azar Consulting’s strategy might look like betting on black or red in a casino (i.e. choosing a buy or sell direction) it does seem more advanced and so far that’s what the results suggest as well. With random directional trades you’d expect only a 50% success rate over time. However, Azar Consulting’s trades which went to the 100 TP or SL limits (or very close to it) have a success rate of 24 winners against 13 losers to date. Hence this seems to suggest their system until now gets the direction correct in almost 2 out of 3 times.
The maximum drawdown on open positions to date is only 100 pips, not surprisingly, because their stop level is 100 pips and they’ve only opened 1 at the same time so far. With regards to losing streaks, Azar Consulting only had twice a losing streak of 2x-100pips, before they recovered from this. With regards to your ZuluTrade account settings you have to take into account this potential of a few losing trades of -100 pips in a row. So far it’s only been two, though it’s likely that over time this will be higher at some stage. I.e. you cannot just assume the maximum drawdown is 100 pips as this is only the drawdown per trade.
We also notice that up until now the maximum trades Azar Consulting has done per month is 9. I.e. they’re not overtrading and so far they’ve not started trading more in order to get more commission now that they’re more popular and have a good amount of live followers. Another positive note on this ZuluTrade signal provider is that they communicate often and try to respond to queries from their followers.
Obviously only time will tell whether Azar Consulting’s system can stay profitable and a key point will be to see how they deal with a longer losing streak or a losing month. Would they panic as some other popular ZuluTrade signal providers have done in the past and start opening more positions or changing their strategy (obviously you can limit open positions allowed in your ZuluTrade settings). Or will they keep using the same system or take a break and wait until the market is ready for it again. One positive thing is on this is that so far they’ve resisted changing their so far winning strategy as was suggested by one (better to be ignored) of their followers.
Please note that this ZuluTrade trader review has been included here for information purposes only and doesn’t constitute investment advice. Investing in leveraged Forex instrument through social trading networks or otherwise involves a high level of risk. Please contact an independent financial advisor if you’re unsure whether this type of investing is right for you. Never invest money you cannot afford to lose.