Saved FX Review ZuluTrade SP January 2013
This review was written on January 18th 2013. At this date Saved FX was ranked number 30 in the ZuluTrade rankings. With just over $2 million following they’re 7th in terms of popularity (by amount following). Saved FX has been trading for 30 weeks on ZuluTrade and based on the historical performance data (click here to view) here’s our review of this Russia based Signal Provider:
Saved FX Pros:
- positive returns for 8 consecutive months
- no losing months to date
- high feedback rating (87%)
- no performance drop after first 3 months
Saved FX Cons:
- no close stop levels (drawdown may be high with 11 open trades)
- still limited history (only 30 weeks)
The first thing to note when reviewing Saved FX’s performance is that their performance graph moved up fairly gradual over time, which is a good sign. Returns per month have also been positive for each month so far, and more importantly, there’s not a massive drop in performance after the first 3 months. This is something seen by quite a few other ZuluTrade signal providers who’s performance drops off when they start getting more followers.
Saved FX describe their strategy as based mainly on classical technical analysis. They trade almost exclusively the major EURUSD and GBPUSD pairs. They do sometimes let profit run to 100 pips and average profit per trade is 16 pips. This is pretty healthy and the strategy isn’t focussed on short term scalping. Trades are opened an average of 1 day.
The winning trades ratio for Saved FX is 97%, which is very high, but therefore also a slight worry as it would normally mean a high historical drawdown since hardly any losing trades are closed. In the case of Saved FX, the maximum historical drawdown is 1,430 pips, with single trade maximum drawdown being -242 pips. I.e. the drawdown level is certainly not small, but compared to an average monthly profit of 1,000 pips it looks acceptable.
One worry though when looking at Saved FX’s historical trades is that it’s not clear what their exit strategy is when they have a number of losing positions. There’s no information on what stop levels they use. I.e. it’s not clear what the maximum drawdown would be they’d take and with a maximum of 11 open trades this can be quite a bit. Also, at two occasions Saved FX closed their losing trades at the last day of the month. On both times they already made a lot that month to cover the losses, and hence ensure they still get their commissions while starting the next month with a clean slate. As long as you’d started following them at the beginning of the month this would have been great for you, though if you’d started near the end and only got the losing trades, you’d probably not be so pleased. Hence if you decide to follow this ZuluTrade SP you may want to consider doing so from the first day of the month.
Nevertheless it doesn’t look like Saved FX has got many ZuluTrade followers complaining since their feedback score is currently 87% (5 star) which is very high. Overall the performance looks very good to date, though ideally we’d like to see more history, certainly now their popularity increased. It’s also highly likely that at some stage the drawdown will be higher than its current historical levels since no close stop levels are used. You can always use our ZuluTrade risk calculations tool to give you an idea of the allocations you might use based on the risk you want to take.
Something else to take note of is that Saved FX seems to be sending very similar trade signals as another Russian based ZuluTrade SP, namely Kama-spot (click here). This is something you should take into consideration when you invest in both at the same time, since it obviously doubles your risk (i.e. with all trades opened in the same directions).
Please note that this ZuluTrade trader review is included here for information purpose only and does not constitute advice. Trading in leveraged FX product is highly risky and always consult an independent financial advisor if you’re unsure whether trading on ZuluTrade is right for you.