For today’s review, written October 2nd 2013, we look at Fx 25/50 Signal. This ZuluTrade signal provider has been active for 1 year and has just reached the nr 4 position in the ZuluRanking. They only have $68,000 of real money following them so far. Based on Fx 25/50 Signal’s trade history and ZuluTrade profile, here’s our review of this Italy based trader:
Fx 25/50 Signal Pros:
- overall profitable
- improved risk reward over past 6 months
- follows own signals with live ZuluTrade account
Fx 25/50 Signal Cons:
- high overall drawdown
- poor risk reward ratio
- strategy description incomplete and no updates
- max stop level not mentioned (overall risk unknown)
Fx 25/50 Signal’s pips profit graph (see below) shows an overall increase over 52 weeks, though in the first 4 months the results were very inconsistent. Overall a profit of 4,223 pips has been booked though this was against a maximum drawdown of -1,610 pips or 38%! I.e. the historical risk reward has been poor, since lots of risk was taken for a relatively small reward.
The ZuluTrade strategy description mentions Fx 25/50 Signal uses a system based on 10 years experience and using technical analysis indicators. The strategy mentions profit targets of between 25 and 50 pips, and looking at the actual trade results this seems to be fairly accurate. The strategy also mentions up to 9 pairs will be traded and a maximum of 10 positions. So far 7 different pairs have been traded (though 80% of trades were in the EURUSD pair) and a maximum of 8 positions have been opened by Fx 25/50 Signal in the past on ZuluTrade. When multiple trades are opened they’ve normally been opened in the same pair and direction, though occasionally they’ve been used to hedge already open positions. There’s no mention of maximum stop levels used and so far one trade went as low as -525 before reversing (i.e. it’s unlikely there was a stop level on that trade). With trades open an average of 3 days this is pretty much a medium term strategy. Average profit of 19 pips per trade is fairly decent though.
Nevertheless, with up to 10 open trades and no clear stop levels Fx 25/50 Signal is clearly a very high risk signal provider to follow based on the historical trades. However, if we just look at the ZuluTrade trade history for the past 6 months, the results become slightly more promising. Drawdown for the past half year was only -412 or 22%, only a maximum of 4 simultaneous trades were opened at the same time and almost all trades were in the EURUSD pair. It also looks like some trades were actually stopped out (at levels ranging from -50 to -225 pips), though the worst trade during this period still went to -256 before reversing. I.e. the performance during the past 6 months seems more consistent and it certainly looks like Fx 25/50 Signal adjusted their strategy over time.
However, Fx 25/50 Signal has not provided any updates for 10 months and hence it’s unclear for any potential followers whether the strategy or system was indeed amended. I.e. without any information on the maximum number of trades required to currently follow this trader (still 10?) or any information on the target maximum stop and drawdown levels, it’s still a risky signal provider to follow because overall risk is totally unknown. The fact that Fx 25/50 Signal follows their own signals with a real money ZuluTrade account might however provide some level of confidence. But on the other hand, this trader also had 3 other ZuluTrade signal provider accounts which were blown.
In summary, based on Fx 25/50 Signal’s performance over the past year this is a fairly high risk provider to follow who’s so far returned relatively low returns for the risk & drawdown incurred. The results over the past 6 months have however been more promising but without any further information it’s unclear whether this was down to luck or better trading practises and improved strategy.
Please note that any ZuluTrade trader reviews are included on the Social Trading Guru website for information purposes only. These reviews do not constitute advice and are not endorsements of these traders. Trading leveraged FX instrument can be very risky. Never invest money you cannot afford to lose.