Greeniee Review ZuluTrade Trader August 2013
When we wrote this review (August 12th 2013) greeniee was ranked number 6 in the ZuluRanking. They have been trading on ZuluTrade for 62 weeks and have just over $1.7 million of real money following them. Based on greeniee ‘s ZuluTrade profile and trade history, here’s our review of this Indonesian based trader:
- overall profitable
- past 3 months very good results (on a good run)
- 1 year trading history on ZuluTrade
- follow own signals from real money ZuluTrade account
- incomplete strategy description and unclear updates
- high-ish historical drawdown (high historical risk versus reward)
- stop levels unclear (hence total risk unclear)
- on occasions strategy looks Martingale type trading (i.e. high risk)
When we look at greeniee’s overall ZuluTrade profit graph (see below) we notice a gradual increase for the first 9 months, followed by a 2 month decline and a steep recovery over the past 3 months. The trading volume and maximum open trades during the whole period were fairly steady, so the results (which were not very consistent) should be mainly contributed to greeniee’s actual trading strategy.
Greeniee’s average monthly returns are just over 1000 pips, though these weren’t spread very evenly over the past year and most were made over the past 3 months. While the fact that the results haven’t been consistent/gradual over the year is a more negative sign, the fact that the recent results have been very good is a positive sign. We’ve seen many ZuluTrade traders post great results for the first few months and then fade away. This trader actually seems to have improved their results as they managed to get more followers.
In terms of drawdown, greeniee’s results were achieved against an open trade drawdown of 2,900 pips and account drawdown of 3,386.7 pips. I.e. with an average overall return of 1,000 pips, a drawdown of over 3,000 pips is fairly on the high side. However, only looking at greeniee’s past 3 months’ results on ZuluTrade, the drawdown level looks more acceptable since the results were averaging over 3,000 pips per month as well.
So what strategy does greeniee use? Looking at the strategy description on their ZuluTrade profile doesn’t unfortunately give us much insight. They mention using candle stick patterns for trade entries. With regards to maximum open trades they mention both up to 10 and up to 3 positions which is rather confusing. However looking through their historical trades, 11 was the maximum so far, though 10 seems to be the most common maximum. Greeniee does mention that drawdown will happen and there’s no mention of any stop levels used. The worst level a single trade (EURJPY) was drawdown was -294 pips in April 2013. This trade was however not stopped out and was 5 days later closed in profit when the markets had reversed. In fact, at the time 10 positions were opened in the EURJPY within a few minutes and all in the same direction. This contributed to the highest open trade drawdown so far and it’s clear that an even larger drawdown was only averted because the markets reversed and not because any stop levels were hit. I.e. the total risk is not know and it’s not clear how far greeniee would have let the drawdown go on.
While on that occasion the 10 trades were opened at pretty much the same time, on the other occasions 10 trades were opened, extra positions were added at regular intervals, which tends to be more of a Martingale type of trading strategy (i.e. adding to losing positions until the market reverses). I.e. without clear stop levels this strategy can be fairly risk and as greeniee does mention in their limited strategy description ‘ prepare for the drawdown’. On a positive note though greenie do seem to follow their own signals from a live account and so far there’ve been quite a few followers who made very healthy ‘real money’ profits following this ZuluTrade signal provider.
In summary, greeniee’s results, particularly the past 3 months, have been very good. Obviously they seem to be on a good run, also supported by the fact that they haven’t even registered a single losing trade during this period. However, this also underlines the risk associated with their strategy which involves large periods of drawdown and without clarity on overall stop levels, there’s not knowing how far the drawdown will go (and with 10 open trades this can be quite high). The fact that greeniee follows their own signals from a live ZuluTrade account may give some comfort that the losses will not be unlimited, though that’s certainly no guarantee.
Please note that any ZuluTrade trader reviews are included here for information purposes only. They do not constitute investment advice. Never invest money on ZuluTrade or other social trading networks which you cannot afford to lose. Always consult an independent financial advisor if you’re not sure.