ZuluTrade Signal Provider Style – Quick tool to know how they trade
Signal Style helps the investor in identifying the operating style of the examined Signal Provider. With a simple click the program combine all the historical operating data of the Signal Provider in order to provide an indication of his operating style.
The program identifies:
|Long Term strategy;|
|Medium Term strategy;|
|Short Term strategy;|
|the various nuances that exist between the different styles, whether you are facing a long-term trader who has operational characteristics contaminated by medium-term logic, or medium/short etc …|
|the risky Martingale strategy;|
|not well defined operational style.|
Obviously, whatever the rating of the program, you can evaluate a Signal Provider in his environment and decide if there are other objective evidence showing he can be used regardless the program judgment.
For sure, it’s an operational guide essential for the beginner follower investors, but also for the most experienced.
The operating style at a glance
It’s definitely not obvious to distinguish at a glance the operational style of the Signal Provider in front of you, despite this is essential to identify those traders with those specific operational characteristics, suitable for the composition of a balanced portfolio that reflects your risk and return objectives.
The trading strategies implemented by the Signal Provider are many. Nevertheless, for simplicity, a trader can be categorized into one of the four broad categories that distinguish the operational style depending on the trades duration:
|Traders who work with a long-term view. This category includes all traders operating with a very long time horizon, the average length of the transactions rarely fall below 2 days;|
|Traders who work with a medium-term view. In this case usually the average trade duration is between a day and a little less than two days;|
|Traders who work with short-term view. These are traders who make different operations per day with an average duration less than 24 hours;|
|Traders who work with martingale strategy. This type of operational style is not affected by the trades duration perspective, but rather by the type of mathematical calculation linked to the strategy. They are usually very dangerous operational styles.|
Identifing the operational style of a trader is very important because it gives you a first rough idea of the type of DrawDown expected, in terms of:
|Drawdown average duration;|
We can even make an idea about the time needed to see the first Signal Provider’s results. From a Signal Provider operating with short-term perspective you can expect weekly results (pay attention, not necessarily profits), while linking to your account a Signal Provider operating with long-term strategy the results can be searched on a monthly or bi-monthly basis.
For more information about the macro categories, read our lesson The Signal Provider for different strategies.
Using the Zulutrade Advanced Search is definitely essential to be able to make a first selection among the multitude of Signal Providers, identifing those that best match the profile you are looking for in order to realize the portfolio you desire.
Unfortunately, many of the Signal Provider that will be proposed by the advanced search do not fully reflect the characteristics you are looking for, even if they come close. We noticed in fact that one of the major difficulties for novice followers investors (and not just them) is to fully understand the type of Signal Providers they are in front of.
This is why InvestinGoal has decided to help you in the evaluation of the Signal Providers designing the program SIGNAL STYLE.