For333 is a Chinese Signal Provider who became ZuluTrade’s nr1 ranked trader on September 14th. They have been trading this system on ZuluTrade for the past 55 weeks. Looking at for333’s historical performance information on ZuluTrade, here’re our:
- 10 consecutive profitable months (and that’s including any unrealised PnL)
- 4 star customer feedback rating (average from 175 live followers)
- large balance of live money following > $5million
- > 1 year history
- do not trade their own money
- strategy not explained clearly in profile
- no communication with followers
- 2 historical trades hit the 500 pip loss level (which is the default Stop Level). Arguably these were at the beginning in September 2011 and since then the maximum drawdown on a single open position was 295 pips
- part of the strategy seems to involve adding additional positions to losing positions in the hope/assumption the market will reverse enough to close all at break-even (e.g. 6 open buy positions in EURUSD on August 10th 2012, same on June 27th 2012)
- historical drawdown over the full period is fairly high, > 1000 pips (with 9 open trades). Over the past 6 month it has been 825 pips with maximum of 6 open trades
The results over the past 10 months are very impressive for for333 and the 4 star feedback rating from a significant amount of ZuluTrade customers means people have actually been making money following this signal provider. In our view, some caution has to be given though because this trader does not trade their own money and the strategy is in no way explained. It’s unclear how many open trades for333 requires their followers to allow (9 is the maximum over 1 year and 6 over the past 6 months). There’s also no clear indication what stop levels are used (if any) and the fact 2 previous positions went to 500 pip negative is a worry as well. The fact that multiple trades are opened in the same direction, adding to losing positions, can also lead to significant drawdown or losses when the market moves in 1 direction without a significant retrace.
Below are some potential lot sizes calculated using our ZuluTrade account settings tool using for333’s historical data from the past 6 months (we prefer to use a longer period, though the strategy looked more stable over the past 6 months). Please also note that the calculations are slightly impacted by the fact some trades include exotic pairs (EURAUS and GBPJPY), though because there were only a few of those the impact is small.
Please note that this review is included here for information purposes only and the lot size calculations for following for333 with a ZuluTrade demo account. Historical results are not necessarily indicative of future performance. Please contact a financial advisor if you consider investing in ZuluTrade with real money.