ForexAnomaly have recently moved up sharply in the ZuluRanking and at the time of this review (March 12th 2013) they were 2nd. In terms of money following them, this Canada based signal provider was 22nd (about $844,000). Based on ForexAnomaly’s historical trading results on ZuluTrade for the past 57 weeks here’s our review of this trader:
- profitable 10 out of 12 months to date
- very profitable in recent months and market conditions
- performance not very consistent to date
- no communications
- strategy description doesn’t match actual trading results (more max open trades)
- do not trade with own money
- fairly high historical account drawdown
We normally start by looking at the profit graph and ForexAnomaly’s graph is certainly interesting (see below). It shows a gradual increase in pips for the first 3 and a half months, all of which were lost again in the next 3 and a half months. In fact, the majority (about 70%) of the 5000 pips profits made so far by this trader on ZuluTrade were booked in the past 2 and a half months. Hence while they’ve shown some great results in recent months, ForexAnomaly’s performance over the 57 weeks to date has not been very consistent.
In terms of losing months though there have only been 2 losers to date, though one of those, June 2012 was fairly negative with a -685pip loss. ForexAnomaly’s best month to date was February 2013 with a profit of 1728, though worth noting that the trade volume (i.e. number of trades done) was the highest that month as well. The maximum drawdown on open trades to date was 531, with the worst single trade being drawdown -208 pips. I.e. for a profit of 5000 pips, these figures look fairly reasonable. However, the maximum total account drawdown on ZuluTrade (difference between peak and valley) was 1222 pips, which is fairly high, especially at the time this occurred when it amounted to almost 100% of profits made (probably more if you take into account slippage).
ForexAnomaly describes their strategy (click here to read on ZuluTrade) as “a hybrid EA (automated + manual trading) that capture rapid changes in trend when the market flips”. They mention the EA will open between 1 and 5 order maximum. However, the historical trade data shows that on occasions 6, 7 and even 9 trades were opened at the same time. Hence part of the description is clearly inaccurate and doesn’t match the actual trading style. Unfortunately ForexAnomaly hasn’t provided any other updates, so it’s not clear how much value can be put in this outdated strategy description. It would for example be good to know why the last few months were more profitable than the others and what their strategy currently is.
Looking at the actual trades to try and find some reason ourselves, one key difference we noticed is that instead of just trading the EURUSD pair, ForexAnomaly started trading the GBPJPY pair as well. A lot of the profit was generated from trading this pair, and it’s worth noting that both the GBP and JPY have been very volatile in recent months, with some very strong trend driven movements. Hence perhaps ForexAnomaly started using their EA and strategy on the GBPJPY pair as well and this is what generated the extra pips. Unfortunately without any feedback from this trader we can only guess.
While ForexAnomaly’s results in recent months have certainly been very good, it probably requires a leap of faith for ZuluTrade investors on whether or not to invest in this signal provider. Without a consistent strategy description or status updates it’s difficult to identify the reasons behind this sudden improvement (especially since the results before were not that good or consistent) and hence make an opinion on whether or not this can be sustained.
Please note that we included this ZuluTrade signal provider review here for information purposes only and this should not constitute advice. Investing with ZuluTrade or any other fx social trading networks can incur significant losses. Always consult an independent financial advisor if you’re not sure whether this type of investing is for you.