In accordance to EU legislation which aims to increase investor protection ZuluTrade has introduced some changes to their social trading service for EU residents.
The following changes came into effect from December the 12th 2014:
- The first time they log in after the 12th, EU customer will to complete a short Suitability Questionnaire
- Only the top 500 Traders will be visible in the ‘ZuluTrade Traders Performance’ table and it will only be possible to follow and copy those. These Traders need to comply with the following criteria: Max DrawDown less than 30%, average pips per trade more than 5 pips and trading history for over 12 weeks. More information can be found on the ZuluTrade Trader Guide. EU customer who’s portfolio includes traders which are non-compliant will automatically have those traders disabled in their Portfolio after December 12th. This means no new trades will be opened for those traders, though the customers will still receive the closing signals for any open trades these customers have open in their portfolio.
- Going forward EU residents will also need to protect each trader in their portfolio using ZuluGuard Capital Protection. Please note that this a good practice anyway!
- In addition, the maximum accumulated Capital Protection for all the traders copied in their account cannot exceed their overall risk allowance (which can be no more than 75% of your available balance).
- Based on the customer settings, capital allowance and historical trader statistics, an upper limit restriction on the maximum lots per trade for each trader will also be applied.
- And finally, whenever an EU customer makes a new deposit they will need to manually re-set their maximum Capital Allowance.
While to some EU customers these changes may sound a bit restrictive, overall they’re no more than good practice which most experienced ZuluTrade users who appropriately manage their overall risk apply anyway. For those who like to gamble and take excessive risk in the faint hope to make large profits with limited capital, this obviously restricts their options (and they may as well visit a casino website instead).
Click Here to visit ZuluTrade
This review of ZuluTrade signal provider ProfitSwing was written on December 3rd 2014. On this date ProfitSwing was ranked first in the ZuluRanking while, with almost $3 million of real money following them, they were also the second most popular trader on ZuluTrade. In total they been trading 182 weeks on this social trading network. Based on ProfitSwing’s ZuluTrade profile and trade history, here’s our review of this Russia based trader:
- overall profitable
- 3.5 year trade history
- results over time improved (last 6 months the best)
- system managed risk well historical (low open trade drawdown)
- clear stop levels used
- focuses on 1 currency pair
- no not trade for end of month commissions
- does not trade on ZuluTrade with own money
- system can endure longer non profitable periods
- maximum number of open trades unknown
- performance not consistent (i.e. long term system)
When we look at ProfitSwing’s profit graph (see below) we notice an overall increase which was pretty much achieved in 2 separate phases with a period of stagnation in between. I.e. the first year of trading saw a fairly gradual increase followed by about 2 years of stagnation (or very small growth) which in turn got followed by 6 months of steep profits. About two thirds of months were closed in profit while one third of months ended up losing. The last losing month though is 7 months ago.
Some key points to take away from this are that ProfitSwing’s system seems to work well in the most recent time period. I.e. the performance has improved and has been profitable in the market conditions of the past half year. In addition, it seems clear the trader is not too concerned about posting losing months and hence losing their ZuluTrade commissions. I.e. it doesn’t look like adjustments are made to the system to try and finish a month in profit, with the focus being overall long term performance.
In terms of strategy used, ProfitSwing is very clear that this is a fully automated EA (automated trading robot) running on a VPS. They mention the system was tested based on 10 years of historical trade data and has been running uninterrupted for the past 3.5 years. Based on what I mentioned before about the losing months I believe this to be fully true. The system only trades the EURUSD pair.
ProfitSwing also mentions tight stops of 50 to 80 pips are used on each opened position. Looking at the historical trades this is mostly correct though in the past one position went as low as -288 pips while in total 6 went to -100 or lower (however not at the same time). Overall the maximum historical open trade drawdown is -373 pips. Considering the system has traded on ZuluTarde for 3.5 years and opened up to 13 trades at the same time (though more on that later) this is quite a low number. It means ProfitSwing’s EA clearly takes into account overall open trade drawdown when managing risk (not just stop levels per trade).
However when looking at the drawdown for a system like this which closes trades in loss as well, it’s important to look at the overall account drawdown as well. Looking at the profit graph we can work out an account drawdown between 11th June 2012 (+4,367) and 1st February 2013 (+2,977) of -1,390 which at the time was about 32% of the profit until then. For most ZuluTrade followers who are looking for quick returns it’s hard to see many hanging in there over a period of 8 months with gradual losses. However in terms of the overall profit of +9,865 pips to date the historical maximum account drawdown represents only 14%. However if we look at it in terms of average monthly returns over time of 235 pips per month it equals 6 months of anticipated returns. ProfitSwing also mentions the system is allowed a maximum drawdown of 50%, it’s clear this hasn’t happened in the past, however as always that’s no guarantee it won’t happen in the future. Nevertheless it does look like the system has managed drawdown well in the past, especially open trade drawdown.
In terms of open trades we normally always have a look at the actual open trades which were opened at maximum to see of the ZuluTrade signal provider uses a Martingale type of trading system or not. The fact that the overall drawdown was fairly low especially over 3.5 years already gave a good indication that no Martingale type of trading was employed. Looking at the actual historical trades for ProfitSwing it’s also clear that sometimes hedging is used so not always all trades are opened in the same direction.
The total maximum number of trades required by the system is not mentioned by ProfitSwing. While, as mentioned before, open trades have been managed well before, it is actually still useful to know the absolute maximum required. Otherwise it difficult to calculate the maximum risk you’re taking as a ZuluTrade followers if you want to set your own maximum allowance levels for this trader.
Average pips profit per trade is 9 pips, which is not massive but very reasonable, especially over such a long time frame. Because ProfitSwing sends their signals from a 3rd party broker account, sometimes the slippage can be a bit higher. However, as reported on ZuluTrade as well, that doesn’t seem to be the case here.
Personally we’re normally a bit sceptic about pure automated trading robots, especially when they can leave multiple positions open during news events. I.e. 10 open positions during a European Central Bank rate release can cause swings of over 100 pips and hence 1,000 pips in your account. However it obviously doesn’t look like this has occurred so far with this system, with the relatively low open account drawdown, though obviously this is something to consider if you’d be following a system like this. Although as always with news releases it could move with you as well, just depends if you want to gamble or not sometimes.
In terms of followers, while ProfitSwing has made some good overall returns on ZuluTrade, their popularity has only risen again in the past few months. So far followers are clearly still cautious when following this trader since in total ProfitSwing has only made about $11,000 for their top 5 followers. No doubt the low risk settings are driven by the potential future drawdown and maximum open trades to consider. It’s also worth mentioning that ProfitSwing only sends their signals from a demo account.
Another point to note is that the system seems to work by opening different lot sizes. However with ZuluTrade, every trade is opened in the same size you specify in your account. Hence the overall performance of the system in terms of $ value in their Alpari demo account will not be the same as on ZuluTrade. However clearly the system has been profitable in terms of pure pips returns too and that what’s important in ZuluTrade and what this review is based on.
In summary, it’s rare to see a trader or system survive on any social trading network for a period of 3.5 years, let alone be in decent profit over that time. However, ProfitSwing bucks this trend. Over its lifetime on ZuluTrade this automated system had 2 very profitable periods with a long stagnated period in between. However, the longevity of the system is clearly related to the fact that it seems to manage overall risk well and while losses are taken, they never get to excessive levels. This clearly isn’t a system for most ZuluTrade followers who seem to be after instant exponential profits. However this does show that a system which manages risk well (and doesn’t employ Martingale type strategies to cover losses) can be nicely profitable over time. Periods of drawdown will be inevitable though and with ProfitSwing mentioning that drawdown could be as high as 50% it therefore could be at some stage higher than any past levels. Nevertheless, in terms of standing time this is clearly one of the best automated systems we’ve come across recently (and as we mentioned before, we’re normally not a fan of just pure automated systems). But again for those expecting short term gains, it’s impossible to predict what the next 6 months will bring.
Click Here to view ProfitSwing current ZuluTrade performance
ProfitSwing ZuluTrade pips profit graph up to December 3rd 2014
Please note we include any ZuluTrade trader reviews here for educational purposes only and they do not constitute investment advice. The inclusion of a trader should be seen in any way as an endorsement of that trader. Forex trading can be very risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if you’re not sure if this type of investing is right for your risk profile.
“Double Your Profits, Refund Your Losses – Up to £/€100” is the exclusive ayondo Christmas offer for new and existing clients.
To qualify you have to deposit at least £500 between 1st December 2014 and 31st December 2014 (the offer period) and ayondo will credit your account with the sum of the net valuation of your realized P&L up to £/€100.
All qualifying round-trip trades placed on your account following you joining this offer (i.e. depositing), up until 23:59:59 on the 31st of December 2014, will be counted towards your net profit/loss.
Ayondo will credit your account in the week following the expiry of this offer with the sum of the net valuation of your realised P&L on all qualifying trades up to a maximum of £/€100. For example, if at the end of the month you have made a net profit of £50, ayondo will credit your account with an additional £50.
To register for the offer, you have to email ayondo support with your name and account number once you’ve deposited, specifying that you would like to take part in the offer.
Click Here to read the full terms and conditions of the ayondo Christmas offer
eToro is offering a special deposit bonus to new and existing customers of up to 50% (see table below). This promotion is only valid from November 3rd to November 9th 2014. To benefits use coupon code “newcopy” when you deposit at eToro here.
The reason for the special promotion is the launch of their CopyTrader 2.0 platform, the new version of their popular copy trading tool. Please note that the minimum deposit required is $200 and only 1 deposit per clients is allowed. T&Cs apply.
Click Here for the full details of the eToro deposit offer
Don’t forget though to enter the code newcopy in the “promotion code” field when making your deposit in the eToro Cashier section.
|$200 – $999
|$1,000 – $1999
|$2000 – $4999
|$5,000 – $19,999
This trader review was written October 15th 2014 and looks at fxforwarder who have been trading on ZuluTrade for 88 weeks. Currently this Germany based trader is 20th in the ZuluRanking with just over $1,250,000 of real money following them. Here’s our review based on fxforwarder’s ZuluTrade profile and historical trades:
- overall profitable and fairly consistent returns
- over 1 year trade history
- follows own signals from live account
- only 2 losing months so far
- focus on 1 currency pair
- relative high historical account drawdown
- no clear stop levels used
- maximum number of open trades and maximum risk unknown
- likely high future drawdown with current Martingale type strategy
- relative poor risk return ratio
The profit graph for fxforwarder (see below) shows a fairly gradual increase with a few periods of drawdown. Of the past 20 months on ZuluTrade only 2 months were losers if we include unrealised PnL, which is pretty good. So far 5,285 pips have been made which averages at a little over 250 pips per month. Not massive, though certainly reasonable especially since fxforwarder’s results have been fairly consistent so far.
Average pips gain per trade however is only +6, which is a little low. If you would consider that some slippage will occur, then 1 pip slippage would reduce your profits by almost 20% compared to fxforwarder’s account.
The maximum drawdown so far was a little over 1,250 pips. Compared to fxforwarder’s average monthly returns of 250 pips this number is pretty high. It’s about the same as 5 months expected profit. In addition, when we look in fxforwarder’s ZuluTrade profile at the actual historical trades during the time of this drawdown (early September 2013), we notice that they were not stopped out, but a larger drawdown was only avoided because the market reversed. For example we can see that their worst trade at the time went as low as -208 before reversing and being closed at -87.4 pips.
At that time the maximum number of 12 trades were opened, and all of them were opened at incremental time intervals in the same direction and same currency pair (in fact fxforwarder only trades USD/JPY pair). So what this tells us is that fxforwarder seems to apply a Martingale type of trading strategy. I.e. they add to losing positions in the assumption or hope the market will eventually turn. As we all should know by now, this type of strategy can lead to high levels of drawdown if the market doesn’t turn. In defence to fxforwarder, it doesn’t seem the strategy is pure Martingale, since for example this month they closed some trade cycles in loss (a pure one normally only closes them when the market turns and they can close the series of trades in profit or break-even). Nevertheless, with this type of strategy it’s likely future drawdown may be higher and hence the risk reward is not looking that good.
This signal provider’s strategy description on ZuluTrade is a little limited, though they mention they get the buy signals from a break-out indicator. It suggests you don’t set your own stop-losses. However on an individual trade level it doesn’t look like fxforwarder applies any stops and it’s not clear at what level or at how many open trades fxforwarder pulls out if the market keeps going against their direction. Hence the total risk is fairly unknown and the only mitigating factor here is that fxforwarder now follows their own signals from a live ZuluTrade account as well (this was only recently though).
Fxforwarder also has two other systems on ZuluTrade, both of which have no followers and been discontinued. In terms of followers, this signal provider made about $10,000 in total for their top 5 followers so far. They also only started trading for a larger amount of followers in the past 2 months, after they moved as high as 10th in the ZuluRanking. A slight worry is that their recent performance has not been that great though it’s too early to judge whether this is because they started trading for a larger amount of followers and hence commissions, which as we know impacts some people’s trading styles.
So in summary, overall the results of fxforwarder on ZuluTrade have been fairly consistent. However, the average pips profit per month and per trade are low when we consider the risk based on the historical strategy used. I.e. the total risk is not very clear since the strategy seems to add to losing positions with no clear stop levels indication. The only mitigating factor to this is that fxforwarder follows their own signals from a live account (however there’s never a guarantee they follow all their own signals).
Click Here to view fxforwarder’s current ZuluTrade performance
fxforwarder ZuluTrade pips profit graph until October 15th 2014
Please note that any ZuluTrade signal provider reviews are included here for educational purposes only. The inclusion of a trader should not be considered as an endorsement of this trader. Forex and social trading can be very risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if not sure.
It has come to our attention that Currensee and their Trade Leaders program will be closed on 31st October.
The following is the key extract which was just sent to their existing customers:
We are writing to inform you that on October 31st 2014, Currensee and the Trade Leaders Program will cease operation.
Following a strategic review, including feedback from our customers around the world, self-directed trading remains the priority for our retail traders. As such, we will continue to focus on core OANDA principles of superior execution, competitive spreads, integrating with industry leaders like MT4, providing analysis tools from partners like Autochartist, and premium educational resources.
The Currensee Team“
From one side this is certainly a bit of a surprising move since Currensee was only acquired by forex broker OANDA just over a year ago (23rd September 2013). In an environment where most forex brokers now offer some kind of social or auto trading capability to their customers (either via an in-house platform or partnering with an existing network), it’s therefore surprising OANDA decides to ditch the platform and network they only acquired a year ago. It seems OANDA want to focus on their key forex self-directed trading offering and in the short term they’re not looking to replace Currensee with something else.
On the other hand, anyone who read our Currensee review will know that from our experience this was probably one of the worst social trading networks and platforms in the market. If the platform and the traders on it are poor, then in the long run it cannot really be a sustainable business or offering I guess.
There’s still a wide choice of other social trading networks and platforms out there and this is still a very exciting and growing market, even though one of the earliest networks is ceasing to exist.
An interesting new trader has joined the Ayondo social trading platform.
They trade under the profile name FCInvestment2012, but the real trader behind it is Christian Fahrner. The reason we we find this interesting is because Christian Fahrner won the Handelsblatt stock market competition in 2012 due to outstanding performance. Since then he’s continued to enjoy success as a trader and now joined ayondo, allowing others to automatically copy his trades and join in his potential future success.
Because he only joined recently Christian Fahrner currently resides in level 2 of the ayondo Trading Career. However he’s gaining followers very rapidly.
Since April, when his account was tracked on Ayondo, he’s returned a very healthy 76% for a maximum drawdown of about 22%. Christian mainly trades the German 30 stock market index, though also trades the US Wall Street index and the EUR/USD currency pair.
You can view the full FCInvestment2012 profile on Ayondo here. This also allows you to view his latest performance stats.
Important to note that Christian Fahrner is a “real money trader” on ayondo, so he risks his own money as well.
In due course I’m sure we’ll write a full review on this trader.
In the meantime don’t forget that social trading involves some risk as well and past performance isn’t a guarantee for future success.
This trader review looks at PooTumVV and was written September 22nd 2014. At this time this ZuluTrade signal provider was ranked first in the ZuluRanking. PooTumVV also has just over $1,750,000 following them and has been trading on the network for 64 weeks. Based on PooTumVV’s ZuluTrade profile and historical trades, here’s our review of this Thailand based trader:
- overall profitable
- over 1 year trade history
- uses clear stop levels and only open maximum 1 trade
- only 2 losing months so far
- good historical average pips per trade return
- focuses on 1 currency pair
- sends signal from demo account (i.e. does not risk own money)
- returns better in first 8 months than the last 7 months
- relative high historical account drawdown
- limited returns so far for followers
The profit graph for PooTumVV (see below) is overall ascending, though arguably not very gradual. When looking at the monthly performance we can notice that most of the profits were booked in 3 to 4 very profitable months, while January 2014 was the only significantly losing month with -378 pips (also their most active month).
Overall 2,744 pips of profit have been booked by PooTumVV on ZuluTrade so far which averages at about 183 pips per month. However over the past 6 months only just over 500 pips profit were booked so the most recent performance of PooTumVV seems to be less profitable than their first 6-7 months on ZuluTrade.
Maximum open trade drawdown was -104 pips. However because only 1 trade is opened at the same time we should consider the account drawdown for PooTumVV when evaluating their risk reward. This was about -580, or a bit more than the average returns over 3 months. It’s not one of the worst risk reward ratios, but also not one of the best.
PooTumVV describe their strategy as pure technical using a 15 time timeframe. They target profit of 115-130 pips per trade with stop losses around 75-80 pips. I’ve not tried to replicate the strategy so unfortunately cannot comment if it is totally exact. From the times the trades are opened it does look like they’re opened by an EA robot. The profit targets and stop losses PooTumVV mentions in their ZuluTrade strategy description seem to match the results of their actual historical trades. In fact the average pips profit per trade is 20 pips, which is actually a pretty healthy number (which should also reduce the impact of slippage).
All trades within this strategy are in the EUR/JPY pair. It’s worth mentioning that in addition to this trading strategy, this trader also seems to have 4 other newer strategies running on ZuluTrade. Two of them as well trading the EUR/JPY pair while the other two focus on the USD/JPY pair. All of them so far are in positive territory, though they’ve not been running for over 6 months. Because of the number of strategies running it seems fairly clear that all of them are managed by EAs.
PooTumVV so far has only made about $3,500 in total for their top 5 ZuluTrade followers. This is a low number, especially taking into account the number #1 ranking and hence popularity. Obviously the number is low because the recent performance has been fairly flat, though it also may reflect the fact that followers are not risking massive amounts based on PooTumVV’s historical risk return ratio.
PooTumVV does not trade with their own money either at the moment. They do however provide regular status updates and tend to respond to some of the followers questions.
In summary, this purely technical trader has returned some reasonable pips over the past 15 months on ZuluTrade with their trading strategy which only opens 1 trade at the same time. PooTumVV ‘s average profits of 20 pips per trade is pretty good. However, taking into account the historical account drawdown, the risk/return is not that good. Performance over the last 6 months has also slowed down too, though arguable still been positive.
Please click here to view PooTumVV’s real-time performance.
PooTumVV ZuluTrade performance until September 22nd 2014
Please note that any ZuluTrade trader reviews are included here for educational purposes only. The inclusion of a trader should not be considered as an endorsement of that trader. FX trading can be highly risky. Never invest money you cannot afford to lose and always consult an independent financial advisor when you’re not sure.
This trader review was written September 2nd 2014 and looks at Absolute Piper. They’ve been a signal provider on ZuluTrade for 74 weeks and are currently ranked 20th in the ZuluRanking. They also have almost $1,250,000 of real money following them. Based on Absolute Piper’s historical trades and ZuluTrade profile (click here), here’s our review of this Greek based trader:
Absolute Piper Pros:
- sends signals from live trading account (risks own money)
- last 10 months consistent returns with good risk reward ratio
- focuses on 1 (low risk) currency pair
- maximum 4 consecutive open trades (reduces overall risk)
- over 1 year trading history on ZuluTrade
Absolute Piper Cons:
- first 5 months performance poor
- relatively low average pips profit per trade
- relative high drawdown during first 5 months
- not been trading for many followers yet
Absolute Piper’s profit graph (see below) can be broken down into 2 significant different periods. The first 7 months were pretty much break-even, with the initial profits being lost again. However, the next 10 months have shown a fairly gradual increase. Hence Absolute Piper improved their performance over time, and based on the past 10 months are certainly performing much better.
Overall 3,108 pips profit were booked so far by Absolute Piper, which works out at about 183 pips per month average over their full trading history. However, ignoring the first 5 months the average returns increase to 311 pips per month. These are not very large numbers but it only makes sense to compare these by taking into account the risk taken.
Again though, if taken over Absolute Piper’s full ZuluTrade trading history, the average monthly returns are low compared to the maximum overall account drawdown of about 1,000 pips. However, over the past 10 months, the average monthly returns are similar to the maximum drawdown experienced, which is positive in terms of risk reward.
Absolute Piper’s strategy description is brief, though they mention using both technical and fundamental analysis, including trading important economic news releases. It does look like most trades are entered manually and this is not a pure automated trading robot. Maximum open positions mentioned is 4, and only once, 17 months ago Absolute Piper opened 7 trades. Maximum anticipated drawdown mentioned is 500 pips, though the account drawdown in the first 5 months was actually higher than this.
When we look at Absolute Piper’s actual ZuluTrade trade history we can also see that they only trade the EUR/GBP currency pair. This is an important piece of information, since this currency pair normally has a fairly small daily price range. I.e. this should decrease overall risk since even with 4 open trades it’s highly unlikely massive pip movements will occur on a daily basis. So far Absolute Piper’s worst single trade was -173 pips, and this trade was actually open for 14 days.
While their ZuluTrade strategy description and updates doesn’t mention the use of specific stop levels, it does look like some trades are being stopped out at preset stop levels. However, as mentioned, with the EUR/GBP, the daily range are fairly small, so a trader can more easily manage overall risk by manually looking at the trades (even once or twice a day).
Absolute Piper also doesn’t seem to have any preset profit targets for each trade and profits range from about 5 pips to 68 pips, averaging at 7 pips per trade. This number is a little low and your overall profit may be impacted if there’s some significant slippage (> 2 pips). In terms of slippage though, we’ve not tried this trader ourselves, but normally with the EUR/GBP pair (small spread and low volatility) it can be expected to be low. However because Absolute Piper uses FXDD broker it’s worth checking your live results after a few weeks in case you follow this trader and use a different broker.
In terms of Absolute Piper’s broker though, it’s important to mention that they use a full live trading account to send their signals. I.e. they risk their own money as well. They also seem to have had 3 other accounts on ZuluTrade, though none of them have been active for the past year, so they seem to be focussing on this account only. In terms of followers, they’ve made over $32,000 for their top 5 followers so far, and while not rated by many followers, so far their feedback is good. In terms of rankings, they’ve been gradually moving up and getting more followers. However, Absolute Piper certainly haven’t reached the summit in terms of number of followers, so there’s still the caveat that they may change their trading behaviour once they start trading for lots of commissions as well.
In summary, if we look at Absolute Piper’s performance over their full 17 month trading period on ZuluTrade, their overall performance would be very average at the most. However, if we only look at the past 10 months, their results have been very steady with a good risk reward ratio. With only a maximum of 4 open trades and trading the low volatile EUR/GBP pair, the overall risk is fairly contained. In addition, Absolute Piper also use a live account to send their signals. However, with this type of strategy and the relatively low average pips profit, some periods of higher account drawdown are possible in the future (i.e. higher than those experienced in the past 10 months).
Click Here to view Absolute Piper’s latest performance
Absolute Piper ZuluTrade performance up to September 2nd 2014
Please note that we include these ZuluTrade reviews for educational purposes only. The inclusion of a trader should not be seen as an endorsement of this trader. Never invest money you cannot afford to lose and always consult an independent advisor if you’re not sure whether this type of investing (Forex) is right for you.
Example of new Signal Trader balance graph (click to enlarge)
Signal Trader just added a new indicator which is very useful for evaluating the historical performance of their systems, and more specifically historical drawdown. When you go click on the “Balance” tab under “Historical Performance”, the graph will now not only show the historical balance, but also the actual historical equity, which takes into account the Floating P/L at that time (i.e. the open trades). Hence you can quickly view by how much (in real money) the account of the Signal Trader system was drown down in the past. On the graph (click it to enlarge), it’s the red line. Please note that the balance graph also still displays the actual profits withdrawn from the system account by the trader.
Unfortunately the time frame of the historical equity indicator currently only goes back until July 2014. Nevertheless, this is a great addition in our opinion, making the information provided by Signal Trader clearer and more transparent. One caveat we mention in our Signal Trader review is that the calculation of the drawdown displayed in the historical performance can be confusing and optimistic. This is because this value is currently calculated as per a set of negative closed trades. Comparing the equity value with the balance value on the graph gives you a more convenient and easier to understand indication of the past drawdown.
Click Here to view the historical performance of the Signal Trader systems (with equity)
Signal Trader was formed with the aim to provide the best possible solution for automated trading, enabling investors to automatically copy the trades of other traders in their own brokerage accounts. Signal Trader does not act as a broker themselves. Their motto is “Real Money, Real Trades, Real Time”. In fact they’re one of the only social trading networks were all the systems are required to trade with their own money and where the actual value of their trading accounts is shared with the investors.
is “calculated as per a set of negative closed trades”. – See more at: http://socialtradingguru.com/network-reviews/signal-trader-review#sthash.ApeFDWsJ.dpuf
is “calculated as per a set of negative closed trades”. – See more at: http://socialtradingguru.com/network-reviews/signal-trader-review#sthash.ApeFDWsJ.dpuf
is “calculated as per a set of negative closed trades”. – See more at: http://socialtradingguru.com/network-reviews/signal-trader-review#sthash.ApeFDWsJ.dpuf
For this trader review (written August 7th 2014) we take a look at arbtrader CHIMERA, who’s been trading on ZuluTrade for 64 weeks. They recently moved up to the #4 position in the ZuluRanking with just under $1 million of real money following them. Based on arbtrader CHIMERA’s ZuluTrade profile and trade history, here’s our review of this UK based trader:
arbtrader CHIMERA Pros:
- overall profitable
- past 5 months fairly consistent returns
- focuses on 1 currency pair
- over 1 year trading history
arbtrader CHIMERA Cons:
- does send signals from demo account
- relative high historical drawdown (poor risk reward ratio)
- no fixed stop levels used
- high potential future drawdown
arbtrader CHIMERA’s profit graph (see below) shows an overall increase, with 3 very significant drawdown periods. The last of these drawdown periods was in February 2014 though and the last 5 months have been more consistent with a fairly gradual increase in pips. Overall a profit of about 5,750 pips has been booked so far, which averages at about 380 per month over the past 15 month period on ZuluTrade. The average pips per trade profit for arbtrader CHIMERA is 14, which is pretty healthy and means the impact of slippage will normally be small. The fact that only the GBPUSD pair is being traded also means slippage should be low, since the spreads on this pair are pretty similar among most brokers.
These profits were however booked against a maximum drawdown of almost -1,600 pips. This is more than 4 months average returns, meaning arbtrader CHIMERA’s risk/reward ratio is not very good. Their ZuluTrade winning ratio of 79% seems to suggest that trades are left open a bit longer until they become profitable, hence leading to the occasional drawdown periods.
In terms of strategy, arbtrader CHIMERA is pretty clear in mentioning that this is a fully automated EA trading robot which uses a mechanical trading system to identify support and resistance. arbtrader CHIMERA also mentions up to 9 trades will be opened consecutively on ZuluTrade. However there’s no mention of any stop levels being used.
In fact when we look at their trade history on ZuluTrade it’s clear that no fixed stop levels are currently being applied and used by arbtrader CHIMERA. We explained this before. To identify this, you look at the lowest level single trades went down to (click on the “Low” column) and you compare this number with the actual level the trade was closed at. If none or hardly any of the trades were closed at their lowest level we can assume no stops were used. In the case of arbtrader CHIMERA the lowest trade went down to -304 pips. However it was closed at -104.9 pips, meaning that if the market hadn’t reversed at the time it did, the drawdown levels would even have been higher.
With up to 9 open trades and no clear stop levels it’s highly likely the future drawdown may be even higher than the historical one. But in all fairness, arbtrader CHIMERA clearly mentions in a status update to expect periods of drawdown with this strategy and to ensure you use the correct leverage in your ZuluTrade account. It also looks like the live ZuluTrade followers so far are using fairly conservative settings because until now the maximum amount a follower has made from this signal provider is about $2,500.
In summary, overall the result for arbtrader CHIMERA over the past year have been profitable. However, these result were achieved against a relatively high level of drawdown, which should also be expected in the future (even though the past 5 month on ZuluTrade have been relatively steady). arbtrader CHIMERA uses a pure automated trading robot and regular readers of our reviews and tips will know that we’re not the biggest fans of pure automated systems. These automated robots normally don’t take into account any fundamentals and can therefore often lead to large drawdowns when the markets take some significant turns (especially when no clear stop levels are used). In our opinion there’s nothing wrong with using EAs and automated systems, though in our experience they operate better when managed by professional traders who can intercept and adjust the trades based on fundamental information and news releases.
Click Here to view the current trading performance of arbtrader CHIMERA on ZuluTrade.
arbtrader CHIMERA ZuluTrade pips profit graph until August 7th 2014
Please note that any ZuluTrade trader and signal provider reviews are included here for educational purposes only. They do not constitute investment advice. Forex trading and using social trading networks can be highly risky. Never invest money you cannot afford to lose.
Back from an extended break, so the ZuluTrade trader reviews will be starting again. While I normally don’t like reviewing traders with limited trading history, a few people have asked me for an opinion of Fibotradingchris. Easy to see why, since within a short space of time, this trader managed to get to the number 1 position in the ZuluRanking. At the time of this review (July 31st 2014) Fibotradingchris was also the second most popular trader on ZuluTrade with just under $7 million following. All of this in a period of only 23 weeks. Based on Fibotradingchris’ (limited) trading history here’s our review of this Greece based signal provider:
- overall very profitable
- low drawdown compared to average profits
- uses clear stop levels
- interacts actively with followers
- generate good actual $ returns for top followers
- does not trade or follow signals from live account
- most profits booked in first few months
- still very limited trading history
Looking at Fibotradingchris’ profit graph we notice a steep increase in pips from March until May 2014, followed by a flatter performance for June and July. In total more than 20,000 pips profit was booked by this ZuluTrade trader so far, which averages at about 3,700 pips per month (a very high number).
These results were achieved against a reported open trade drawdown of just over 2,000 pips. However, taking into account closed trades, we have to assume that Fibotradingchris’ actual historical account drawdown level was likely a little bit higher. Even bearing this in mind, the average pips profits per month so far are higher than the historical drawdown, which is very good. I.e. it means that “historically” the profits of 1 month, would have covered any drawdown.
So how were these results achieved? Looking at the strategy description in Fibotradingchris’ ZuluTrade profile unfortunately doesn’t provide any insight into their trading strategy and approach. It does however mention the suggested lot sizing and mentions the use of stop levels (around -100 pips).
When we look at the actual historical trades it’s clear that -100 is currently used as the widest stop level. As we mentioned before in other ZuluTrade trader reviews, we’re not a big fan of traders who let all their trades go to a fixed arbitrary stop level. Top traders will watch the markets and if they feel sentiment has changed (e.g. based on news or data releases), adjust their positions accordingly. I.e. they may take smaller losses instead of waiting for their stop levels to be hit. While most of Fibotradingchris’ losing trades seem to be stopped out at the -100 level, at least a few are closed at smaller losses. While it’s still a very small amount it therefore might suggest Fibotradingchris monitors the positions manually and adjust if deemed necessarily.
In terms of profit targets, most of Fibotradingchris’ recent profitable trades seem to be closed around the +25 level. However some are closed for smaller or higher profits. What’s noticeable though is that in the months where they booked most of their profits on ZuluTrade (March-April), quite a few trades were closed at profit levels of between 70 and 130 pips. However, in the two most recent, less profitable month, +50 seems to be the maximum profit booked on a single trade (and most are +25). This may be a sign that Fibotradingchris changed their strategy, and this has impacted the performance. Certainly something to monitor going forward.
Fibotradingchris currently opens up to 30 consecutive trades and historically they’ve traded about every currency pair tradable on ZuluTrade. Personally I normally prefer traders who focus on one or a few currency pairs and who pick a few trades a week, instead of a trader who trades every single pair available and has trades open all the time. However, some successful traders open multiple pairs as part of more complex hedging or correlation strategies, so this is very much a personal opinion.
As we mentioned before, when a ZuluTrade trader trades many exotic pairs (e.g. NZD/JPY, NZD/CAD, GBP/JPY, …), do check your slippage when you use a different broker than the trader because the spreads can differ quite significantly between brokers on these pairs.
When all 30 trades are opened it looks like only a maximum of 3 trades are opened in the same pair. However, historically the direction of most of the pair combinations is the same when many trades are opened (e.g. all for or against the USD or JPY). I.e. while there will be some hedging going on between the pairs, it’s likely that most will be moving in a similar direction. I.e. it’s possible that one strong market move may lead to most of the 30 trades being closed out at their -100 pip stop level. However, arguable -3000 is still less than the historical average monthly profit.
Fibotradingchris currently sends their signals from a demo account and hence do not risk their own money (they just risk their future ZuluTrade earnings). However Fibotradingchris’ top 5 followers have made over $35,000 between them so far. This is a very good number, especially taken into account that this trader is relatively new on ZuluTrade. In addition, their trader rating from 304 live followers is 81% at the moment, which again is very high. Fibotradingchris also actively posts status updates and interacts with followers who post messages on their feed. This seems to be a sign that this trader does follow the market and is active most days.
In summary, the results Fibotradingchris has achieved in a short period of time on ZuluTrade are very good. Average monthly returns so far have been higher than the historical drawdown. In addition they’ve made some significant money already for their live followers. However, as we mentioned before, 5 months is still a very short time frame to properly evaluate a trader’s performance. Especially when most of the profits were achieved in the first 3 months. The next 3 to 6 months will provide us with much better data to evaluate this trader, especially now that they’re top of the ZuluRankings and Fibotradingchris is trading for many more followers (and potential commissions). There’re plenty of examples of ZuluTrade traders with exceptional initial results, who failed to maintain their early promise. Time will tell whether Fibotradingchris falls into that category or whether they can maintain their top ranking.
Click Here to view Fibotradingchris latest results and open trades on ZuluTrade
Fibotradingchris ZuluTrade pips profit graph until July 31st 2014
Please note that any ZuluTrade trader reviews are included here for information purposes only. The inclusion of a trader isn’t to been seen as an endorsement of that trader. Forex trading can be highly risky. Never invest money you cannot afford to lose and always consult an independent advisor if you’re not sure whether this type of investing is right for you.
For this review we have a look at SwissRunner, a trader who’s been on ZuluTrade for 66 weeks. At the time of writing (June 5th 2014) this signal provider was the 2nd most popular in terms of money following them (almost $3 million). They were also ranked 15th in the ZuluRanking. Based on SwissRunner’s ZuluTrade profile and trade history, here’s our review of this Swiss based trader:
- overall profitable and fairly consistent
- follows signals with own live ZuluTrade account
- trades low volatile pair (i.e. overall less risky)
- over 1 year trading history
- takes into account news event
- fairly high relative historical drawdown
- no clear maximum stop levels (total risk not known with 18 open trades)
- managed 4 other systems which bombed on ZuluTrade
When we look at SwissRunner ‘s profit graph (see below) we see an overall increase which, excluding the first two months, is fairly gradual. Their first two months of trading on ZuluTrade were however very volatile. In terms of monthly profits, only one month was a losing month to date when unrealised PnL is taken into account.
In total 6,247 pips profit was booked by SwissRunner on ZuluTrade so far, which is just over 400 pips per month average. More pips were made during the first 6 months though and looking at the past 6 months only, the average returns were 320 pips per month.
Overall these results were achieved by SwissRunner against a drawdown of -2,020 pips, though excluding the first few months, the maximum drawdown was -674 pips. However, whichever way you look at this, the drawdown versus returns is still pretty high. Overall it’s 32% and just looking at the past 6 months it’s 35%.
SwissRunner describes themselves as ‘an expert in statistics and algorithmic trading’, using a strategy they optimised for a year and a half. They also mention they observe the news, and from their status updates and trade history on ZuluTrade it’s clear this is the case. In terms of recommended total number of trades SwissRunner suggest to allow for 18. However this was only used once so far and normally the amount opened are 10 or less.
It’s important to note that SwissRunner specialise in trading the EUR/CHF pair. This is important to know since this pair is probably the least volatile of the major currency pairs. In fact the Swiss Central Bank (SCB) pegs the CHF to the EUR. Hence the daily movements are pretty small. Obviously this means the risk is smaller than trading on other more volatile pairs, though the potential daily profits will be smaller too.
In fact looking at SwissRunner’s historical trades on ZuluTrade we notice that their worst single trade only went as low as -185 pips before reversing and being closed at -60.9 pips, even though this trade was open for almost 2 weeks! Looking at the historical trades we also notice that SwissRunner doesn’t seem to use fixed stop levels, and most trades seem to be closed manual. However, again because of the low volatility of the pair, the use of stop levels is probably slightly less important as long as positions are monitored daily. The one major risk though could be if the SCB changes the peg level, something which happened a few years ago, and caused a 5,000 pip movement within seconds.
With potentially 18 open trades and no stops, the potential drawdown can still go up quite quickly, even on the EUR/CHF pair. With no fixed stops, the trust of how the drawdown and risk will be managed is fully down to the ZuluTrade signal provider in this case. A positive factor here though is that SwissRunner follow their own signals from a live ZuluTrade account, and they mention they’ve done this since the beginning. While the amount they use to follow themselves is probably not massive (otherwise the highest profit made from this trader in the table on the left of their ZuluTrade profile would be higher), it’s still a positive factor since they risk some of their own money as well. A slightly more worrying observation is that SwissRunner is know as 5 other systems on ZuluTrade, 4 of which have bombed.
Average profits per trade are 8 pips, which is good, but not great. Especially if you take into account the slippage which you may experience this number can be low. However, because the EUR/CHF pair is traded I’d expect slippage to be low. Firstly because the spreads on this pair are normally low across all brokers and secondly because volatility is low.
So overall, the results of SwissRunner have been pretty consistent (excluding the first two months). Historical drawdown on the other hand has been fairly high when compared to the average returns. However because a low volatile pair is being traded overall risk can be consider slightly lower than when more volatile pairs are being traded. Nevertheless because 18 positions can be opened at 1 time and no stops are being use, full trust needs to lie with how SwissRunner manages their own trades. The fact they risk their own money is a positive factor here, as is the fact that they take into account news events and provide occasional status updates. One key worry though are the other systems they tried on ZuluTrade, but which failed.
Click Here to view SwissRunner’s current performance on ZuluTrade
SwissRunner ZuluTrade pips profit graph up to June 5th 2014
Please note that we include any ZuluTrade trader reviews here for information purposes only. Any review should not be considered as investment advice. Trading Forex and using social trading networks to copy other traders can be highly risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if you’re not sure.
For today’s review we have a look at dashidai1, a trader who’s been trading on ZuluTrade for 56 weeks. At the time of writing (May 28th 2014) they were the 2nd most popular signal provider with just over $3 million following them, and ranked 18th in both the ZuluRanking. Based on dashidai1’s ZuluTrade trade history and profile, here’s our review of this China based trader:
- overall profitable
- very good average pips profit/trade
- follow signals with own live ZuluTrade account
- over 1 year trading history
- relative low historical drawdown
- no clear maximum stop levels (total risk not known)
- manage 60 other systems on ZuluTrade (15 bombed)
- fairly limited strategy description and no status updates
- automated trading robot – may require manual monitoring & intervention
Overall, dashidai1’s profit graph (see below) shows a fairly gradual increase over the past year. Only the period from November 2013 until February 2014 was flat, though for the rest, steady profits were booked. In terms of monthly returns, only 2 of the past 13 months on ZuluTrade were negative (including unrealised PnL).
Overall about 9,250 pips profit was made by dashidai1, which is just over 700 pips average per month. However this was achieved against a maximum open trade drawdown of 1,140 pips. I.e. the historical maximum drawdown is less than 2 months average returns.
The strategy for dashidai1 in their ZuluTrade profile is unfortunately not very descriptive (and some of it may have been lost in translation). It does however mention profit targets of between 10 and 100 pips and a maximum of 5 open trades at the same time. Looking at the actual trade history of dashidai1 this seems to be correct. However their original description also mentions a fixed stop loss of -200 pips. While on about 9 occasions this seems to have been applied, on another 11 occasions trades were left open beyond this level. The worst single trade going as low as -657 pips before reversing. Hence the actual current Stop Level is not clear and therefore neither is the total risk when dashidai1 opens 5 consecutive trades.
In terms of pairs traded, dashidai1 trades on all the major USD pairs. While they don’t tend to open all of their 5 trades in the same pair, they do tend to open them in the same direction against the USD. Hence if 5 positions are opened, they normally tend to move in the same direction with the USD.
Average trade time is 3 days, making it a more medium term strategy. The average pips returns of 19 pips per trade however is probably dashidai1’s most outstanding indicator. This is pretty healthy and also means that if any slippage occurs that the impact will be low (however from the ZuluTrade slippage graph it doesn’t look like much occurs anyway).
The fact that dashidai1 follows their own trades with their own live ZuluTrade account is a positive factor. However a more worrying observation is that this trader is running about 60 systems on ZuluTrade, about 25% of which so far have bombed. I.e. it’s highly likely this is just a pure automated EA robot. As with all trading robots, they can perform very well during certain periods, though overall, they’re only as good as the trader managing them. Hence with 60 (or 45) systems to manage, how much manual interventions does this trader make? From the lack of status updates not sure whether it’s a lot, or any at all. I.e. all trades seem to be automatically triggered.
In summary, overall it’s difficult to argue with the historical results of dashidai1 on ZuluTrade so far. Average returns of 19 pips per trade is very good, while so far this has been achieved against a relatively low drawdown. However it seems to be evident that this may be a pure EA trading robot and hence over time may need some careful monitoring. The fact that the ultimate stop level per trade is unclear is also a worry since it means overall risk is unknown. Dashidai1 does however follow their signals with their own live account which may provide some level of confidence that overall risk will be managed, though obviously it’s unclear how much money they risk themselves.
Click Here to view the current ZuluTrade statistics for dashidai1
dashidai1 pips performance graph on ZuluTrade until May 28th 2014
Please not that any ZuluTrade trader reviews are included here for informational purposes only. A review should not be considered investment advice and the inclusion of a signal provider should not be seen as an endorsement. Trading Forex can be highly risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if unsure whether Forex trading or social trading networks are a right way of investing for you.
For this review we have a look at NEMER88, a trader with 55 weeks of history on ZuluTrade. At the time of writing (April 15th 2014) this signal provider was ranked 7th in both the ZuluRanking and in terms of popularity with just under $2 million following them. Based on NEMER88’s ZuluTrade profile and trade history, here’s our review of this trader based in the United Arab Emirates:
- overall profitable
- over 1 year trading history
- very good average returns/trade
- do not trade from live account
- fairly high historical drawdown
- limited strategy description
- no clear maximum stop levels (total risk not known)
- potentially high future drawdown
The profit graph for this ZuluTrade trader (see below) shows on overall increase, though the increase isn’t very gradual. In fact the first 5 months were pretty flat, followed by a significant increase for 4-5 months, though the past 3 months have again been flat. This is also reflected when looking at the monthly performance for NEMER88, with about half of them being profitable. Overall though 10,676 pips profit was booked so far, which is of course pretty good. However, over half these pips were booked in just 2 months (September and November 2013). Because the returns are not very consistent we should not really use them to extrapolate expected average monthly returns.
NEMER88 describes their strategy on ZuluTrade as “depending on the change in the market volatility”, stating that each position has a definite stop level and target profit. They also state 9 years of Forex trading experience. NEMER88 mentions a maximum of 10 positions should be allowed, though normally 6 will be opened. Looking at the trade history, only once 10 trades were opened, though on 12 occasions more than 6 were opened.
Since the strategy description is pretty non-descriptive, we’ll have a closer look at NEMER88 actual ZuluTrade trade history and statistics. In terms of pairs traded, half the time this were the GBP/USD and EUR/USD pairs, though for the rest NEMER88 trades on pretty much every other pair as well. Average trade duration is 6 days, winning percentage 73%, maximum open trade drawdown was -2,060 pips and worst single trade was -893 pips. All the statistics for NEMER88 clearly point to a long term strategy. When multiple trades were opened in the past, they were not all opened in the same pair (i.e. not Martingale), though they were pretty much all opened in a similar direction for the USD pairs. Hence while not necessarily all opened trades will move in the same direction, for the majority they will.
Hence, while NEMER88 mentions the clear use of stop levels, with the worst single trade in their ZuluTrade history going as low as -893 without being stopped out, it’s not clear what the ultimate stop level being used is. Some trades at -401 and -265 were stopped out, but for the rest, plenty of trades went into large drawdowns without being closed out. Again, this clearly supports the fact that this is a long term strategy, though it also makes it very difficult to know your maximum risk. With a maximum of 10 open trades and no clear maximum stop levels, you could be risking a lot.
But, while this ZuluTrade trader lets trades go into significant drawdowns, they also take reasonable profits when the trades go their way. The best single trade was 332 pips, while the average profit per trade is 34 pips, which is a very good figure on ZuluTrade.
In summary, NEMER88 clearly follows a long term strategy. Trades can go into significant drawdown, though profits are left to run as well. Because the maximum risk is pretty much unknown, you’re totally depending on this trader’s risk and money management techniques. Again, it’s always much more difficult to trust the money management approach of a trader who sends signals from a demo account, as is the case with NEMER88, instead of someone sending signals from a real money account.
Click Here to view NEMER88’s current ZuluTrade statistics
NEMER88 pips performance graph on ZuluTrade until April 15th 2014
Please not that any ZuluTrade trader reviews are included here for educational purposes only. The inclusion of a trader should not be seen as an endorsement of that trader. Trading Forex can be highly risky. Never invest money you cannot afford to lose.
This review takes a look at money.manage, a ZuluTrade trader with 90 weeks of trading history on the network. At the time of writing (April 1st 2014) they were ranked 7th in the ZuluRanking and with just under $3 million following them were the 3rd most popular trader. Based on money.manage’s ZuluTrade profile and history, here’s our review of this Bulgaria based trader:
- overall profitable
- only 2 out of 21 losing months
- over 1.5 years trading history
- currently over 80% trader feedback rating
- decent average pips per trade returns
- some trade cycles closed in loss (i.e. seems to watch the market)
- no over-trading
- do not trade with own money
- fairly high historical drawdown
- no strategy description
- no clear stop levels or maximum number of open trades
- potentially high future drawdown (as limits not known)
This ZuluTrade trader’s performance graph (see picture below) shows an overall increase which is fairly gradual, except for a few occasions of significant drawdown. Overall, a profit of 20,685 pips were made by money.manage so far, averaging almost 1,000 pips per month. Only 2 of the 21 months ended in a loss. Average pips made per trade is 13, which is decent, and also means there’s not a massive impact from any slippage you might experience.
On the other hand money.manage achieved these results against a maximum drawdown of -4,450 pips (in October 2013). This is obviously pretty high and in the case of this ZuluTrade signal provider more than their average returns of 4 months. I.e. while the returns have been good so far, the historical risk reward ratio to achieve them has not been so good.
In terms of understanding the strategy used by money.manage, there’s no useful information in their ZuluTrade profile strategy description. Hence we look at the historical trade data to get some more insight. In terms of currency pairs traded, this trader mainly focuses on the EUR/USD pair (>80%), followed by the AUD/USD and GBP/USD. I.e. they trade the major USD pairs. When money.manage takes a trading position in a direction, they opened as many as 27 positions in that direction in the past. All these additional positions would be opened in the same pair and direction, and hence adding to the risk. There’s no information on the maximum number of open positions needed to follow this strategy, but seeing as the past maximum was 27 and ZuluTrade’s limit for sending signals from demo accounts is 30, it’s best to assume 30 is the absolute maximum.
While this is fairly Martingale type of trading behaviour, there doesn’t seem to be much of a rule on when the additional trades are opened. Often with Martingale strategies the intervals between new trades are based on price movements (e.g. every 50 pips), but that’s not really the case here. In fact at the time of the highest drawdown all 27 positions were opened within a 24 hour time-frame. These trades were left open for 2 weeks, riding the large drawdown period and all were closed out when the market had eventually turned. However, there’s no indication on how deep the drawdown could have been if the market hadn’t reversed. In fact there’s no mention of the use of stop levels and historically it’s also clear no fixed stop levels were used by money.manage.
Historically, money.manage’s winning trades ratio is 90% which also clearly indicates this is longer-term strategy and trades will be left open until the markets eventually turn. As many experienced ZuluTrade followers will know, this type of strategy can be highly risky and lead to large drawdown periods. However, one very key point worth noting here is that money.manage closed some trade cycles in a loss (e.g. 12 Nov 2013). I.e. not all trade cycles are left open until they eventually turn profitable (as is the case with pure Martingale strategies), but this trader seems to be willing to cut their losses, presumably when they feel the market direction has changed. Looking at the profile updates it also seems to suggest this ZuluTrade trader actually closely follows the markets and makes their own opinion based on current information (i.e. it’s not a pure EA/trading robot).
Nevertheless, while the current maximum drawdown has been -4,450 pips, it’s likely the level will be higher over the next 90 weeks. In fact, since there’s no indication of stop levels used and with a maximum of 30 open trades, there’s no indication of how high it may go. So unless you apply your own stop levels in ZuluTrade (which obviously may mean your results will not be the same) you need to fully trust money.manage for controlling and managing overall risk. While money.manage do seem to watch their open trade positions, the fact that they send their signals from a demo account also adds to the overall risk though.
On the other hand their average feedback score from ZuluTrade followers is currently higher than 80% (which is high for someone with such a long trading history) and at least one follower has made over $12,000 following this signal provider. Money.manage has also been in or near the ZuluRank top 10 for the past 3 months and so far this doesn’t seem to have affected their results. They also don’t seem to overtrade since they’re not in the market every-day, but seem to pick which days to take positions or not. This trader also has 2 other long term strategies on ZuluTrade, and while both are profitable these also have high historical drawdowns.
So in summary, it’s hard to argue with the fact that over the past 90 weeks, money.manage has made some good overall and fairly consistent monthly returns. However these results were achieved against a large historical drawdown. The fact that up to 30 positions may be opened and no clear stop levels are used also means the potential future drawdown can be much higher. Anyone who regularly reads our reviews and has read our ZuluTrade tips will know that this is not the type of trader or strategy we normally like ourselves. However ZuluTrade investors who are happy to take a long term view and are willing to take on considerable drawdown risk (and hence have a decent account balance to cover the drawdown without panicking) may find this to be an interesting trader. Historical returns have been good and ,importantly, money.manage seem to watch the markets and are willing to change their mind (and take a small loss) when they feel the market direction has changed. If they’d be using a live account instead of a demo to send their signals, adding some additional level of trust, it would make them even more interesting.
Click Here to view money.manage’s current performance stats
money.manage pips performance graph on ZuluTrade until April 1st 2014
Please note that any ZuluTrade signal provider review are included here for educational purposes only. They do not constitute investment advice. Trading Forex can be highly risky. Never invest money you cannot afford to lose and always consult and independent financial advisor if you’re not sure whether this type of investing is right for you.
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.
Click Here to view the current performance stats for Patternicus
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.
Patternicus’ ayondo performance graph and monthly returns up to March 28th 2014
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.
For this review we’ll have a look at First Eagle, who’ve been trading on ZuluTrade for 49 weeks. At the time of writing (19th March 2014) they were ranked 2nd in the ZuluRanking with just over $1 million following them. Based on First Eagle’s ZuluTrade performance stats, here’s our review of this Russia based trader:
First Eagle Pros:
- overall profitable
- very consistent results for past 6 months (improved over time)
- low historical open trade drawdown
- drawdown risk contained due to day trading strategy
- decent average pips per trade profit
- almost 1 year trading history
- specialise on 1 currency pair
- clear limit of open trades (4)
First Eagle Cons:
- do not trade with own money
- potential slippage because trading during news events
- account drawdown to be considered
The historical performance graph of First Eagle is a tale of 2 stories. The first half is pretty much flat, while the second half shows a nice gradual increase. Meanwhile their monthly trade volume on ZuluTrade has been fairly consistent, so the difference in overall performance looks mainly due to an improvement in the performance of First Eagle’s trading system and strategy. On a monthly basis, 3 months resulted in losses, while the last 6 months were all profitable, most of them returning healthy pips profits.
In total about 5,600 pips were returned so far by First Eagle, which is an average of almost 500 pips per month (though looking at the past 6 months alone, the average returns are over 950 pips per month). These results were achieved against an open trade drawdown of 460 pips, which is pretty low and less than the average monthly returns. However, with a day-trading style like First Eagle’s we need to take into consideration the overall account drawdown as well, because losing streaks will sometimes occur. Using our own spreadsheet to calculate this, the overall historical drawdown works out as 1,629 pips. This obviously makes the returns look less good from a risk reward perspective, though it’s worth noting that this drawdown occurred more than 6 months ago and recent results on ZuluTrade have been more consistent.
With regards to their strategy, First Eagle mentions in their ZuluTrade profile that it’s a day trading strategy on the EURUSD pair using a maximum of 4 open trades. They mention the use of stop levels, though the actual level is not mentioned. The worst single trade has gone down to -216 pips though this was pretty much an exception and losing trades are normally closed at lower levels. In fact, because this is a day trading strategy it means trades are normally closed intra-day (or next day in the case of First Eagle) so the potential drawdown risk is kept under control. With a maximum of 4 open trades trading the EURUSD pair the daily swings are unlikely to be very large (> 500 pips).
So in terms of overall risk reward, First Eagle’s results for the past 6 months have been very good, with nice returns for limited risk. For the first 5 months the risk reward ratio was however not so good because of the overall ZuluTrade account drawdown. However, because this is a day trading strategy, the risk will be more contained than with strategies which keep positions open a long time or until they eventually turn profitable. The main risk when following a trader like First Eagle is a long and sustained losing streak.
First Eagle also has 4 other strategies running on ZuluTrade. Normally that’s not always a good sign since it often means the trader has tried a few other systems and accounts before stumbling on a (temporarily) winning one. However in this case, all these accounts are currently profitable. In addition it is very commendable that First Eagle continued trading with the same account even though the first 5 months were not that good. Many ZuluTrade traders who send their signals from demo accounts tend to quickly try new accounts to make their overall results look better.
And this leads us to mention that indeed, First Eagle, also doesn’t trade with their own money (or at least not on their ZuluTrade accounts). Another caveat is that they only recently started acquiring more followers. As always, some traders tend to amend their strategies (often overtrading) once they start making commissions on every trade or getting negative comments. So far there’s no sign of overtrading though obviously this is something to keep an eye on. A final point worth mentioning is that First Eagle sometimes trades during economic news releases. This will mainly impact the slippage you may see because during those periods broker spreads may increase (depending on your individual broker). Hence in case you follow this trader from a live account, do keep an eye on the slippage. With an average pips profits of 10, you have a little bit of leverage. However if you’d experience an average slippage of 3 pips it means your overall returns will be 30% less than those reported for First Eagle in their ZuluTrade profile.
In summary, First Eagle has performed very well over the past 6 months, with healthy returns for limited risk. The first 5 months were not that great, but it’s always better a trader’s performance improves over time than the other way around. Their day trading strategy means overall risk will be better contained than with many of the longer term signal providers on ZuluTrade, though occasional losses over time will be inevitable since losing trades will be closed same or next day. It’ll be interesting to see how First Eagle performs over the next few months now they started trading for quite a few followers, though only based on the results for the past 6 months, this is one of the best traders we’ve noticed on ZuluTrade lately.
View First Eagle’s current performance
First Eagle pips profit ZuluTrade performance graph up to March 19th 2014
Please note that any trader reviews are included here for educational purposes only. They are not investment advice. Investing on ZuluTrade can be highly risky. Never invest money you cannot afford to lose.The inclusion of a trader is not to be considered as an endorsement of that trader.
Ayondo markets have just announced that up until April 30th 2014 they’re running another one of their popular trading credit offers for both new and existing customers. To qualify you need to credit your existing or new ayondo account with a minimum of 1,000 EUR or GBP. The bonus credit which will be added to your account is as follows:
- Deposit between EUR/GBP 1,000 and EUR/GBP 2,499.99 and get 10% extra credit
- Deposit between EUR/GBP 2,500 and EUR/GBP 4,999.99 and get 15% extra credit
- Deposit between EUR/GBP 5,000 and EUR/GBP 9,999.99 and get 20% extra credit
- Deposit greater than or equal to EUR/GBP 10,000 and get 25% extra credit
The maximum total of free trading credit you can get is 10,000 (which would be for a deposit of 40,000). Please note that the extra trading credit may only be used to offset losses on your ayondo account in the event of exhaustion of your initial account deposit. You can read the full terms and conditions of the ayondo trading credit offer here.
In the past these ayondo markets bonus offers have proven to be very popular, since they give any investor a nice safety net against any potential losses. The amount and quality of traders you can follow and copy on ayondo has also been increasing over the past 6 months. In addition more and more of ayondo’s Top Traders now trade and risk their own money as well (which always adds an extra level of confidence when copying them).
Ayondo started in 2009 and is currently one of the leading social trading platforms. Their platform allows investors to automatically copy other successful Forex traders, who can trade currency pairs, indices, commodities, rates and a selection of stocks. For more information on ayondo, please visit the ayondo website or read our ayondo review.
Please note that Forex trading can be highly risky, so always consult an independent financial advisor if you’re not sure whether this type of investing is right for you.
Having reviewed a few more social trading platforms over the past few weeks, it’s high time to start reviewing some traders again. Today (12th March 2014) we’ll review breadman-09, currently ranked #1 in the ZuluRanking with a bit over $630,000 following them. This trader has been on ZuluTrade for exactly 1 year and based on breadman-09’s ZuluTrade profile and historical trade data, here’s our review of this Chinese based trader:
- profitable and fairly consistent results
- good average pips per trade profit
- 1 year trading history
- does not trade with own money
- no stop levels used (level is 500)
- potential very high drawdown periods
- fairly high risk reward ratio
- very limited strategy description and communications
Breadman-09’s profit graph (see image below) exhibits an overall increase which is relatively gradual. A few months did however stand out (April, July and August 2013 and January 2014). Excluding the unrealized PnL, each month would have been profitable, though breadman-09 clearly caries over trades and taking those into account, not each month-end would have been profitable.
Over the past year breadman-09 returned 13,388 pips on ZuluTrade which is a very healthy 1,100 per month average (I’m excluding current losing open positions). These results were achieved against an open trade drawdown of 2,160 pips (as reported in the ZuluTrade profile). However, because at the height of this drawdown period 2 trades were closed at -500, this would have reduced the open trade drawdown at that stage but not your account drawdown. Difficult to get a scientific correct number on maximum total drawdown (account + open). However looking at the individual trades in breadman-09’s ZuluTrade history it looks like the market did start reversing closely after those two trades were closed, so roughly adding another 300-400 pips would be more correct in my opinion. Hence with a maximum drawdown for breadman-09 of 2,500, the average returns of 1,100 per month look slightly less good, considering risk/reward.
So what strategy did breadman-09 use to get the results so far? The strategy description in their ZuluTrade profile is unfortunately not very descriptive. It mentions that breadman-09 uses their own investment techniques and methods, while trading the major pairs, EURUSD, GBPUSD and AUDUSD. They mention mainly 1-5 positions each time. However this was clearly the maximum open trades strategy at the beginning because since last July breadman-09 started opening up to 8 open positions at the same time.
There’s no information provided on any stop levels used by breadman-09, and looking at the individual trades, it’s clear that breadman-09 uses -500 pips as their only stop level. This is easy to check because none of their other trades were closed at their lowest level (i.e. they were not stopped out). In addition when their highest drawdown occurred, all 8 trades were opened in the same direction against the USD (though arguable in 2 different pairs). When the 2 trades were stopped out at -500 pips, some new trades were opened in the same direction to replace them too. Hence the risk you’re taking when breadman-09 starts a trade cycle is pretty high, because if the market doesn’t reverse, drawdown can accumulate with 8 concurrent positions. Arguable, this will not always be the case. When you look at breadman-09’s current open trades in ZuluTrade (and by this I mean at the time of this review) you’ll noticed that some GBPUSD buys are combined with some EURUSD and AUDUSD sells. I.e. while the drawdown is about -450 at the time, some of the positions are hedge against the USD. Overall this is clearly a longer term strategy and some significant periods of drawdown will be inevitable.
With regards to profit taking, breadman-09 normally targets between 10 and 30 pips per trade, though some trades were closed with over 200 pips profit. When we just purely look at the historical performance indicators for breadman-09, the 18 pips average profit per trade stands out as a fairly healthy number. It’s pretty good compared to many other signal providers on ZuluTrade. Considering that some form slippage is inevitable, the higher this number, the less impact slippage will have when you want to compare your actual results with those of the trader you copy.
On a more negative note breadman-09 doesn’t trade or risk their own money at the moment. They also only recently hit the #1 spot in the ZuluRanking and from experience, trading styles and performance sometimes changes once a trader starts getting more followers (and hence more potential commission). It doesn’t look like they breadman-09 has any other accounts running on ZuluTrade, though their feedback score is only just over 50% (not helped by the long drawdown periods, which normally turns off plenty followers).
In summary, breadman-09 has clearly achieved some positive results over the past year on ZuluTrade. Average returns per trade are good, though the fact that no stop levels are used also make this a more risky longer term strategy. So far the maximum drawdown was still contained though it can (and will) no doubt be higher at some stage in the future. I.e. this is something you need to take into account when evaluating risk/reward, and when you consider following this type of trader. The fact that breadman-09 doesn’t trade with their own money obviously also adds to the risk factor.
Click Here to view breadman-09’s current live perofrmance
ZuluTrade pips profit performance graph for breadman-09 until March 12th 2014
Please note that this ZuluTrade trader review is included on Social Trading Guru for educational purposes only. This doesn’t constitute investment advice. Trading forex can be very risky. Never invest money you cannot afford to lose and always consult an independent financial advisor if you’re not sure whether this type of investing is right for you.