T.C.Y. Review ZuluTrade Trader July 2013
This ZuluTrade trader review was written on July 22th when T.C.Y. was ranked 8th in the ZuluRanking and had just over $710,000 of real money following their signals. T.C.Y. has been trading for on ZuluTrade for 71 weeks and based on T.C.Y.’s ZuluTrade trade history, here’s our review of this Singapore based provider:
- fairly consistent returns so far
- low-ish historical drawdown (low risk strategy)
- automated system
- does not trade with own money
- low returns when compared to historical account drawdown
T.C.Y.’s profit graph, see below, shows an overall slow increase over time. Of the previous 16 months, 13 were profitable, while 3 ended in losses. Average monthly profits have been very modest, about 75 pips per month. However, this has been achieved against a maximum open trade drawdown of 59 pips, but a maximum account drawdown of 246 pips. So, while the returns on ZuluTrade are ok when compared to the open trade drawdown number, the maximum account drawdown is 3 times more than the average expected returns.
The strategy description for T.C.Y. mentions they trade the EURUSD pair only, using tight stops and a maximum of 2 open positions. From the updates it’s clear that this is an EA (i.e. trading robot) running which gets adjusted over time. The maximum stop level isn’t mentioned, though looking at the individual trades T.C.Y.’s stop levels range from 10 to 50 pips, though more often it’s in the lower range. Profit targets seem to be higher than the stop levels and looking at T.C.Y.’s historical trades seem to be 3 to 1 or 2 to 1. Best trade so far returned 163 pips.
The average trade duration of T.C.Y. is 4 hours, meaning this is pretty much a day trading system. It also means your overall risk is lower since trades are normally closed at the end of the day, and open positions aren’t carried over week-ends. The average return per trade for this ZuluTrade signal provider is 4 pips, which is very modest. In case you’d follow T.C.Y. with a live trading account, it’s worth checking the slippage you get since with low average returns it may significantly impact your returns.
In summary, T.C.Y. seems to use a fairly low risk strategy which so far has produced some consistent but fairly modest returns. While open trade drawdown is very small, T.C.Y.’s strategy will sustain losing trades and hence account drawdown is something to be considered and monitored closely. The low average return per trade also means slippage (depending on your broker) may significantly impact your returns too.
Please note that any ZuluTrade trader reviews are included here for educational purposes only. A review of a trader or signal provider isn’t an endorsement. Trading with leveraged Forex instruments can be high risk. Never invest money you cannot afford to lose, and always consult an independent financial advisor if you’re not sure whether investing on ZuluTrade is right for you.