Russia007 Review ZuluTrade Trader September 2013
Our review of Russia007 was written on September 10th 2013. On this date this ZuluTrade trader was only ranked 2108th in the ZuluRanking at this time, though they had $440,000 of real money following them. Based on Russia007’s ZuluTrade profile and history, here’s our review of this American based ‘real money’ signal provider:
- sends signal from live real money account
- very low relative open account drawdown
- very good average pips per trade profits
- applies stop levels
- very good performance past 7 months
- maximum open trades and maximum stop level unknown (i.e. total risk unknown)
- strategy/results in trader live account slightly different due to different trade sizing
- not many followers (i.e. not traded for others)
Russia007 has been trading on ZuluTrade for just over 1 year and their pips profit graph (see image below) shows a gradual increase over the past 7 months, but a gradual decrease over the first 5 month. It’s recommendable that Russia007 decided to keep trading and sending signals with this live account and didn’t open a new clean account to send their signals (a practise quite a few ZuluTrade traders have used, especially the ones using demo accounts).
Total profits to date reported on ZuluTrade are 11,241 pips, so overall just under 1,000 pips per month. However looking only at the past 6 months, returns for Russia007 were 10,236 pips, so that’s a return of 1,700 pips per month over the past half year (i.e. very positive). An average pips return per trade of 21 (overall) and 43 (past 6 months) is very healthy.
These results were achieved for an open trade drawdown so far of 386 pips (which is relatively low) and an account drawdown of -1,685 pips (less impressive but occurred in first 5 months). What’s also interesting is that the open account drawdown was achieved with a maximum open trade number of 23 trades and that it’s higher than the individual worst trade (-403 trades). Reason for this is that Russia007 has opened additional positions in the past when their open positions were already in profit, and not like some other traders when their initial positions were already losing (i.e. so far it’s not been a Martingale strategy of adding to losing positions). Again a good risk and money management approach since total drawdown is kept under control.
Russia007’s describes their strategy as a combination of technical and fundamental analysis, monitoring 15 different currency pairs. I.e. anything goes and this trader seems to ‘trade the market’ as they see it and doesn’t rely blindly on an automated trading robot. Unfortunately though there’s no information provided by this ZuluTrade signal provider about the maximum number of trades and/or maximum stop level recommended to copy them.
Hence the overall risk is really unknown. While normally only a few trades are opened at the same time, the maximum to date has been 23 and the worst single trade was -403 pips. Hence with those limits a worst case scenario would be pretty bad (i.e. all 23 hitting worst stop level). However, as mentioned earlier, so far Russia007 has kept their open trade drawdown under control and the fact that they trade with their own money from a live trading account should add some confidence that they keep the risk under control. It’s also clear that this trader uses stop levels, even though some are 300 or 400 pips away. The strategy is clearly medium term with average trading time 6 days and profits are left to run as well (best trade +387 pips and regular trades closed over 100 pips profit).
As with any medium term strategy which regularly has open trades running, trade entry has to be a consideration for anyone considering following this signal provider. If you want to ensure your open account drawdown is not more than Russia007’s then obviously it’s best to start following them when no trades are currently open. This because when the trader you start copying already has profitable trades open any new trades they open are leveraged against these for the ZuluTrade drawdown calculation (but obviously not in your account because you didn’t have those profitable trades running yet). With medium term strategies like this one, trades are also regularly left open during major news releases (e.g. non-farm payroll). Again some traders and investors may consider looking at the positions before the release and decide to close earlier if they want to avoid the volatility which may be cause by the news release.
While it’s very commendable that Russia007 use their live trading account to send signals, one caveat here is that in their live account different lot sizes (0.02/0.03/0.05) are used for trade entries. Unfortunately when you copy Russia007 with ZuluTrade, every trade is 1 signal and the trade size depends on your account settings. Nevertheless, looking at the actual trade results it doesn’t look like the different trade sizing would have made much difference (in fact it looks like results would have been worse and hence results using a consistent trade size would have actually been better).
Another caveat is that so far Russia007 hasn’t got many followers yet and hence they’ve mainly traded for themselves and not others. I.e. they’ve not had to deal with negative feedback or had the lure of overtrading for extra ZuluTrade commissions. If they keep up the performance from the past 7 months I’m sure they’ll be trading for more people soon and hence we’ll know.
In summary, the results of Russia007 over the past 7 months have been very good and it’s a slight surprise their ZuluRanking is so low. For a medium term strategy (i.e. not day trading), the risk management approach has been good with open trade drawdown kept fairly low compared to the monthly returns. There’re question marks regarding the overall risk (i.e. maximum stop level and open trades unknown), though the fact that Russia007 risks their own money should work as some mitigating factor on this. The fact that they’ve not traded for many followers yet is the other major open question.
Any ZuluTrade trader reviews are included here for information purposes only. The inclusion of a trader shouldn’t be considered as a recommendation or advice. Never invest money you cannot afford to lose and always consult a financial advisor if you’re not sure investing on social trading networks is for you.