Denganyouqianle Review ZuluTrade SP October 2012
At the time of writing this review, October 23rd 2012, this Chinese based ZuluTrade Signal Provider has been trading on ZuluTrade for 75 weeks. At this time denganyouqianle are ranked 8th in the ZuluTrade rank and joined 2nd in terms of the amount of money invested in them. You’ll find the full denganyouqianle profile and historical performance here on the ZuluTrade website. Based on these here’s our review:
- consistent returns with only 1 losing month to date
- stops levels seem to be managed and monitored
- relatively low historical drawdown
- looks like this trader ‘trades’ the market and doesn’t use an automated system
- do not trade their own money
- no clear description of the strategy
- last 2 months limited communications
- only 3 star rating by followers
To date denganyouqianle has returned 5,472 pips for a maximum historical drawdown of 869 pips, which is a very reasonable return on the risk taken (please note we use the account level drawdown here from the profits chart as it’s higher than the open positions drawdown of 647). Another positive point when looking at this ZuluTrade SP’s returns is that the profits graph shows a fairly gradual increase in returns and to date only 1 out of 17 months was a losing month.
Identifying which strategy denganyouqianle uses is unfortunately very difficult since they don’t have a proper profile description and neither is it being communicated to their followers via the comments. What’s clear is that they only open 4 trades at the same time. Sometimes all 4 are in the same currency pair and direction, though not always. I.e. this is not a strategy which seems to open up additional positions against already losing ones.
With regards to the Forex pairs traded it’s mainly EURUSD, GBPUSD and AUDUSD. Looking at the historical ZuluTrade data it’s unclear what the entrance criteria are for the trades as it looks like a combination of methods are used (breakout, support, resistance, …). With regards to stop levels it looks like they’re managed depending on market conditions. I.e. they’re not fixed at the same level all the time and some trades are closed at small losses (e.g. 15 or 30 pips) while other trades are left to run with wider stops. The worst drawdown of a single trade to date was 241 pips.
This type of trading behaviour, together with the communications left by denganyouqianle in the past (just click older and use the translate button to read them) make us believe that this trader actually watches the market when they trade and don’t just blindly use an automated system. denganyouqianle also doesn’t seem to over-trade. I.e. this signal provider isn’t putting trades on every single day. Good traders know that some days are best left alone and it’s better to stay out of the market than to put on a trade just for the sake of it. Again without a proper profile or strategy description we can only make these deductions from the trading style and results we see (and hence they’re not substantiated).
denganyouqianle only has a 3 star rating which is slightly surprising seeing the returns have been fairly consistent and there hasn’t been any massively large drawdown. This signal provider also doesn’t seem to enter trades during news events or busy periods and hence the slippage we’ve noticed to date has been low.
Below is an example of account risk settings you may consider when following denganyouqianle with your ZuluTrade demo account. These are created use our ZuluTrade account settings tool (look on the tool page for further info):
Please note that a review of a signal provider isn’t an endorsement of this signal provider. Our ZuluTrade SP reviews are included here for educational purposes only and in no way do they constitute investment advice. To invest in denganyouqianle you need to open a ZuluTrade account. Please note that trading Forex is very risky and you should consult a financial advisor if you’re not sure whether these investment platforms are for you.