ZuluTrade performance – Portfolio simulation
The portfolio simulation function of ZuluTrade, called “Simulate my portfolio”, is certainly one of the most useful tools available on this platform.
To be able to do simulations has always been one of the most useful and interesting study tool for the construction of an efficient investment portfolio.
The accesses to simulation tool are a scattered throughout the entire site, for example in the trader ranking page, or in the main dashboard of your account.
ZuluTrade portfolio simulation – What is not
The first important thing I want you to understand is that this is not a simulation made with complicated logarithms that hypothesize the future performance of your portfolio based on the current behavior of the Signal Providers present in it. There is no future prediction. There is none of that.
This “Simulate my portfolio” ZuluTrade tool simply use the past data of a Signal Provider, and combines them with those of other traders, according to your requirements.
This means that if you want to do a simulation of one year with two Signal Provider, ZuluTrade will retrieve the last year data of those two traders, and will combine them together showing you the output and the performance. In practice, it shows you what you would have earned if, in that last year, you would had followed those Signal Provider with those settings.
Don’t think, therefore, that it is not a useful tool. On the contrary, it’s an invaluable tool. With this portfolio simulation instrument you can play and experiment far and wide, and test all you want. Above all, you can evaluate in a professional manner where you can get the best results, both in terms of performance and risk, not only according to different portfolios of traders, but also on the basis of specific settings given to specific Signal Providers.
We need to start at the bottom, where you can find the box for the selection and management of the Signal Provider and of their settings. These are the same options you can use in the real management page of your personal account. You can, of course, set the lot size value, but also a whole range of interesting parameters.
Two situations (+ one) to use it with caution
Especially, we can find the “Slippage” parameter, and the new “Offset pips”.
With the first, knowing how much the average slippage with the broker with whom you have opened your account is, you can see very wisely if and how much the profit performance would be different. You may notice that, given the slippage, in some cases it would not worth the trouble.
With the second instead, the Offset Pips, you can simulate to change the Signal Provider operations by opening his orders only when the trader’s operation has reached a certain number of pips. For example, setting a negative number -5 pips means that every time you would wait for the trader’s operation to reach -5 pips of drawdown, before the same operation would be opened in your account. In practice, the operation would have opened at a better price of 5 pips than your own Signal Provider. On the contrary, instead, if you put a positive number.
Be very careful with this tool. While it can be very useful to improve the performance, on the other hand, if you don’t know how and especially in what conditions to use it, is likely to do more harm than good.
Opening a trade better than your Signal Provider does not mean avoiding the stop losses. Those are always there and the operations can still go wrong. In addition, if you overdo it, you run the risk of not replicating many of the trades that maybe would have finished into profit.
NOTA BENE: using the OFFSET PIPS function in the ZuluTrade portfolio simulation we have noticed sometimes some inconsistencies between settings and results (e.g. numbers of received-open-closed trades always the same). This could be a problem if we consider that we may take operational decisions regarding this option. Our ANALYZER tool performs a complete and accurate simulation of the Offset option. Try it now!
Another important feature is the possibility to enter fixed levels of stop loss or take profit determined by you, and also add the very useful function “Safe Stop”. Here, too, it’s like the above example. We are talking of changing the work of a professional trader (or supposed to be). If he works this way it’s assumed there should be a reason. This doesn’t mean we cannot try to protect ourselves more, or even better, but you have to do with knowledge of the facts, knowing exactly what you are doing and why. Otherwise you just risk more harm than good.
The ZuluTrade performance simulation
In any case, this portfolio simulation tool is here precisely to give you a way to do all the tests and experiments you want, without the minimum risk of being hurt.
Above all, on the top left, you can set the time period of simulation, and also change your imaginary balance and your account’s currency, including the leverage you would like to simulate.
When you set the data and launch the simulation, ZuluTrade will return the performance graphic. In addition, in the top right corner you can also find the performance figure, in percentage and monetary terms.
If you intervene with parameters that would change your orders compared to the trader’s one, ZuluTrade will let you see the equity line of your profits in green, and that of the trader in blue. That way, it’s very easy to see if and how you would have done better or worse.
As you can understand, there’s so much to say about this very useful simulation tool. It’s a chance to start working professionally and try to get the most from your Social Trading investment.
With the Investing GOLD Membership you will have access also to the content we have dedicated to the use of this tool, where we treat point by point all the best uses and benefits you can obtain from it.
How to open a Demo account
“My account” sections
Trailing Stop, Offset Pips, ZuluGuard
Signal Provider pt.1
Signal Provider pt.2
Signal Provider pt.3
How to open a Live account