ZuluTrade – Easy Step-by-Step Guide to Succeed
Let me guess. You are looking for information about ZuluTrade because:
- You have already tried ZuluTrade but it didn’t work out as hoped and you can’t figure out why
- You are eager to start but you also realize you need to pursue the matter a little more
In both cases, you ended up in the right place.
With this ZuluTrade guide you are about to discover step by step how to effectively use ZuluTrade: from the platform characteristics, to the best strategies to research and use the Signal Providers, to the account management, this guide is a mine of useful information, simple and easy to use.
The best part?
That you can follow all this guide with a up and working Demo Account, with the same features of a real one.
With the InvestinGoal journey you started from the first introductory Investing for Dummies course, you’ve come to find out how you can actually invest with Social Trading, you passed through the course which revealed the market that can let the magic happen, the Forex.
Basically, you have received everything you need to finally start investing in first person with Zulu Trade.
So, let’s begin.
First, let’s discover here what is ZuluTrade and its main characteristics.
- How to open a Demo account
- “My account” sections
- Settings section
- Trailing Stop, Offset Pips, Pips Spacing, ZuluGuard
- Zulurank page
- Signal Provider pt.1
- Signal Provider pt.2
- Signal Provider pt.3
- The Drawdown
- Advanced Search
- Portfolio Simulation
- How to open a Live account
What is ZuluTrade?
Zulu Trade is a financial services company. It operates the largest Copy and Social Trading platform in the world (click here to open a Demo Account and see it in a few seconds). He was born in 2007 from an idea by Leon Yohai, a greek entrepreneur born in 1974, active for some time in various online and mobile successful businesses.
Leon Yohai is himself a trader since 2000. Due to the increasing work commitments, Leon realized he could not follow the markets as he wanted. The idea was to create a system in which other traders, which could instead follow it full-time, could trade in his place, while maintaining full control and full ownership of his account and his capital.
Thus was born the premise of ZuluTrade.com.
Since 2007, Zulu Trade has grown tremendously, and is now a big company, we can say the biggest ever in the Social Trading panorama. It has its headquarters in New York, operational base in Cyprus and offices in Hong Kong, Shanghai and Athens (source wikipedia).
Why Zulu Trade?
ZuluTrade has grown and it has expanded its business network so much that today it supports about 40 brokers worldwide. Among all, the “favorite” is certainly AAAFX, for the simple fact that this brokerage company is owned by Zulu Trade itself.
Regarding Europe, the situation is a bit different, following the regulatory update to MiFID II.
“With what broker is more convenient to open a ZuluTrade account?”.
The answer is AAAFX. It’s the broker directly integrated into the Zulu Trade systems, and being also the broker used by the majority of Signal Providers, the replication process is even more instantaneous and precise. In addition, Zulu Trade has a refund policy for those very few trades in which the replication had some problems. With all the other brokers you can seek reimbursement only for transactions closed with a loss worse than the Signal Provider’s one, while with AAAFX you can ask it even for those with a smaller profit than the Signal Provider’s one.
With the Investin GOLD membership you can access the advanced course where we treat the topic, and you’ll be able to use our excel tool to quickly and effortlessly find all the operations where you can request a refund.
The best ZuluTrade feature is surely the depth of analysis with which a user can study each Signal Provider performance. You can find a long series of precise data about his operational strategy, performance, and even the behavior of the Signal Provider. You can even go to study each trade executed by a Signal Provider, discovering all the evolution that operation had from opening to closing.
Another winning feature of this company is the advanced customization possibility of the replication settings. As we will see in the next lessons, the investor has the ability to manage and modify at will every detail of its portfolio of Signal Providers and of its strategy.
In this factors Zulu Trade has no equal.
If you want to dig deeper into the reasons about why chosing Zulu Trade, here’s our detailed review and opinion.
What do I replicate using ZuluTrade?
For several years this company has proposed only one type replication, before finally offering an alternative.
The first method, the principal, and the one on which is still based on the whole system of performance evaluation, is the fixed replication of the Signal Provider’s signals, choosing by yourself the market exposure you want to keep, regardless of the trader choices.
Let me explain. A trader may decide to open a trade with 10 lots, then another one with 20 lots, then another one with 5 lots. This will not affect you, because how many lots (or mini or micro lots) will be used on your account will be decided by you, and that value will be constant.
For example, if you have decided that the trader operations must be replicated in your account with an exposure of 1 minilot each, the trader may also vary with lot size, but in your account you will have one and only one minilot each operation.
In addition to lots and exposure a Signal Provider may use, in Forex we use PIPs to measure gains and losses, and precisely PIPs are the elements that Zulu Trade will show you to make you understand the Trader’s performance. How much these PIPs will be worth, you will decide it then.
Zulu Trade even provides an automatic Signal Providers ranking. Their performances are studied and analyzed using an algorithm of its property called Zulurank, which returns an automatic traders ranking, based on their performance.
The second method used by the investor is instead the “Pro-Rata” or proportional replication.
In this case, the follower must decide in what proportion he wants to follow the trading orders of the Signal Provider, with clear reference to the Lot Size he uses. By varying the Lot Size selected by the trader, the Lot Size by which the operation will be replicated on the investor’s account will vary proportionally.
With this feature it is now possible to precisely follow those traders who vary the Lot Size of their trade, fully respecting their strategy and their money management.
As we will see, however, this is still a new feature in ZuluTrade (even though fully functional). In fact, the performance shown on the Signal Providers’ personal profiles are based only on the number of PIPs gained or lost, and do not yet take into account their actual value, and the relative performance, according to the Lot Size used.
The only way is to personally view the details of the trades executed by the Signal Provider, to assess precisely the Lot Size used, making use also of Excel. We at InvestinGoal, thanks to Excel, have built some advanced analytical tool that you can use as you like getting the Gold Membership.
Why this course?
The first problem for the vast majority of new investors is the over-reliance on the information of the Zulurank ranking page.
Despite their efforts, this ranking is not reliable in order to make meaningful investment choices. The algorithm tends to favor too much those Signal Providers that have good performance only in the short term.
Those who have exaggerated performance in the short term are usually able to reach such numbers only by exaggerating, which means using very dangerous trading strategies, such as martingale, as we have seen.
Therefore, knowing how to analyze independently a Signal Provider’s performance and strategies is one of the most important factors for a good investment with Social Trading.
Apart from this, Zulu Trade is a platform where the follower investor has really the ability to manage his own fund in a professional manner. The portfolio is fully customizable, and you can also customize the Signal Provider’s operation by setting specific parameters chosen by you.
The Social Trading side of ZuluTrade
In addition to the technical tools, Zulu Trade is composed of a Social part. Investors can vote and comment directly on the work of a Signal Provider, so that all other investors can see the opinions of others and have an idea. Also, you can see exactly what other follower investors like you are doing.
We have, however, warned you about the risk of basing decisions on others’ opinions. Assuming that the majority of people who vote and invests is experienced (or more likely NOT experienced) as you, what is the point to trust their opinion?
Better to have your own opinion, based on definite and professional information.
Comments can be useful in some cases, when they make you aware of some aspects perhaps you had not been paying attention, but Zulu Trade is really the most complete and professional platform for those who want to become proficient in the use and analysis of performance data.
In addition to the Zulu Trade’s ones, we have created our additional tools that will give you an added advantage when you’ll have to create your own investment strategy.
To facilitate the understanding of the use of its platform, this company offers the opportunity to experience the full service with a demo account. In the first chapter we will deal precisely with this: how to best open a demo account with ZuluTrade.