Today’s review covers Trading4You, a signal provider for 35 weeks on ZuluTrade. At the time of writing, October 18th 2013, this trader was ranked 10th in the ZuluRanking and was the 5th most popular trader with almost $3 million following them. Based on Trading4You’s profile and ZuluTrade trade history, here’s our review of this Austria based trader:
- consistent returns so far
- takes into account news releases and breaking news
- good communicator
- stop levels applied at support/resistance levels
- not afraid to close in a loss and reverse action
- average rating over 80%
- does not trade with own money
- maximum stop level or open positions not mentioned (overall risk unknown)
- multiple positions are normally opened in same direction and pair (increases risk)
- still less than 1 year trade history
When we look at Trading4You’s pips profit graph (see below) we can notice a fairly gradual increase in pips for the past 8 months. In fact over such a period of time it’s one of the most consistent we’ve seen for a while. Overall pips profit to date is 8,785 pips, or about 1,100 per month. Apart from August and September, the returns in the other 6 months were almost the same as the average, which underlines the consistency shown by this trader so far. Another sign of this trader’s consistency is an average rating of over 80% by 133 followers. This shows consistency because ZuluTrade followers tend to be very unforgiving in their ratings once a trader has even a short period of poor results.
These positive results have been achieved against a maximum drawdown on of -1,320 pips. This is good number when you take into account that this is only slightly more than the average monthly returns. I.e. Trading4You’s risk reward ratio so far has been pretty good.
Trading4You describes their strategy in their ZuluTrade profile as mainly technical, though taking into account fundamental news releases too. They mention that they trade full-time and from the description it does sound like Trading4You understands some key trading concepts. I.e. we like the fact that Trading4You mentions that they take into account scheduled news releases and avoid trading them before the release because in essence it’s pretty much gambling. That’s normally a sign of a seasoned trader because top traders don’t take 50/50 gambles. Instead they make trade decisions when they feel the odds are more stacked in their favour than against.
Historically Trading4You has traded a few different currency pairs on ZuluTrade though lately they seem to have focussed on the EURJPY pair. From looking at the individual trades it’s also clear that Trading4You isn’t afraid or too stubborn to close positions in a loss, when they feel the direction of the market has changed, and take on new positions in the opposite direction.
While the strategy description does provide some encouraging insight in the trading behaviour of Trading4You, it does unfortunately not suggest the maximum number of open trades and stop level to follow them. Hence we need to have a look at the historical trades to give us some insight in this. With regards to stop levels, it’s clear that Trading4You uses them (I explained this before, but you can check this by ordering the historical trades by the “low” column and looking whether trades were closed at their lowest level – if that’s the case, it normally means they were stopped out by a stop level). In addition, Trading4You is mainly a technical trader and it looks like stop levels are placed near support and resistance levels. The worst trade and furthest stop level to date was -287 pips, though this was on gold which was only traded at the beginning and on one occasion. Next level was -233 pips. With regards to maximum number of open trades on ZuluTrade, that’s been 10 so far and quite often (> 10 times) it’s been more than 4. When multiple trades are opened they always seem to be opened in the same pair and same direction. Hence this could be fairly risky since losses can accumulate quickly that way, though so far Trading4You has managed to keep overall drawdown under control. They’ve also closed full series of open trades in loss, meaning the strategy isn’t to hang on and keep opening more until the market eventually reverses. However, it still requires a level of trust in this trader that the current risk management strategy will be maintained, something which is always more difficult to do with a trader who doesn’t trade with their own money.
Trading4You provides regular status updates on their trade decisions which again supports the view that they have some solid trading experience and understand the impact of news events.
In summary, the pip returns of Trading4You so far have been very consistent against a relatively low drawdown. From the strategy description, status updates and actual historical trades it does look like they have a good understanding of technical and fundamental trading concepts and money management practises. However, 8 months is still a fairly short period of time to fully evaluate a trader, especially since only over the past few months they’ve started trading for many followers. Moreover Trading4You doesn’t trade with their own money which makes it harder to trust a strategy which at times involves opening multiple positions in the same direction (i.e. it certainly would require some regular monitoring). Nevertheless this is certainly one of the better ZuluTrade traders we’ve reviewed and only time will tell whether these excellent consistent results can be maintained.
Please note that any trader reviews are included here for information purposes only. They do not constitute investment advice and the inclusion of a trader should not be considered as an endorsement. Never invest money you cannot afford to lose.