This is the first review we write about an Ayondo trader, Patternicus. They’ve been on ayondo for almost 2 years and are currently (28th March 2014) the most popular trader in terms of number of people following them (and they actually have been for a long time). Based on Patternicus’ ayondo profile and historical trade data, here’s our review:
- outperformed stock markets over past 18 months
- fairly consistent monthly returns (only 3 losing months)
- relatively low historical open trade drawdown
- small amounts risked per trade
- day/short term strategy (no long open positions)
- stop levels used on every position
- over 1 year trading history
- do not trade from a live account
- no strategy description
The overall profit graph for Patternicus shows a fairly gradual increase since their registration on ayondo in November 2012 (see image below). During this period they significantly outperformed the Germany 30 index, growing their account balance with 71% (compared 28% for the Ger30 index). In terms of monthly returns, 15 out of 18 months were profitable so far (assuming they finish this month in profit). Only 3 months were losing months, the worst -7.62% while the best returned +12.36% (see image below).
Looking at the monthly performance stats it’s also clear that Patternicus’ trading results are consistent and not too volatile, which is also supported by an overall volatility figure of 5.24% (which is only slightly more than the stock markets over that period). The maximum drawdown so far was 13.90%, which again is only slightly more than the stock markets over this period. However because Patternicus’ returns were more than double the returns of the stock markets, the slightly higher risk seems to be justifiable based on the historical data. In terms of risk reward it’s also notable that both their Sharpe and MAR ratios outperform the markets.
With regards to the strategy used, unlike with ZuluTrade (and most other social trading networks), there’s no strategy description included on the trader profiles on ayondo. Hence we best look at the historical trades and asset allocation to get an indication if their trading style. Over the past 18 months Patternicus has mainly traded the Germany 30 Rolling index (>75%), followed by EUR/USD and GBP/USD currency pairs. However recently it’s more than 95% on the Ger 30. In terms of risk taken and profit targets, Patternicus normally risks about 0.11 to 0.12% of their allocation per trade and uses a 1 to 1 risk reward ratio, meaning they take profit at similar levels. They clearly use stop and take profit levels. Most of their trades are intra-day, though when volatility is low, some trades may carry over into the next day. It’s worth noting that Patternicus enters their trades manually and this is not an automated robot sending trade signals (these are currently not possible on ayondo). I.e. it’s to be expected that this trader looks at all the market conditions (both technical and fundamental) before entering into a position.
With regards to slippage, as with any trader on ayondo, there is hardly any, since both the copier and the trader use exactly the same platform. While there are live account traders you can copy on ayondo, Patternicus still sends their trade signals from a demo account. Hence they don’t risk their own money, though it’s worth noting that they have been the most popular trader on ayondo for over a year, and this is likely their main income source. They also achieved the highest possible ayondo Top Trader level: “Institutional”. This level is awarded when the trader keeps their maximum drawdown under 15.0% and achieves yearly performance of a minimum 8.0%. I.e. you’d expect Patternicus to keep maintaining their current risk management approach, since while they may not risk their own capital, they do risk their future earnings.
In summary, over the past 18 months Patternicus has outperformed the stock-markets using what seems to be a well managed short term trading strategy. Both drawdown and volatility have been kept under control, while the monthly returns have been pretty consistent. The main caveat is that they still use a demo account to send their signals.
For those of you not familiar with ayondo (but familiar with ZuluTrade), please note that you can also increase the risk you take per trader when you follow them. E.g. x2 means any position Patternicus would open in their account is opened relatively double the size in your account (i.e. if they would risk 0.10% of their balance, this trade would put 0.20% of your balance at risk). Our ayondo review may be a useful read too.
Please note that any trader reviews are included on Social Trading Guru for educational purposes only. They are not investment advice and the inclusion of a trader in a review should not be interpreted as an endorsement of that trader. Forex trading can be risky and you should always consult an independent financial advisor if you’re not sure this type of investing is right for you.