ZuluTrade Signal Provider – Part 1
Let’s suppose you are in the ZuluTrade Traders page we just saw, and that you have found a ZuluTrade Signal Provider that may interest you.
Click on the name or logo, and open his profile to discover every detail of his performances. You can find so much information in the ZuluTrade traders‘ personal profiles, that we had to divide this section into three chapters.
These three lessons are a ZuluTrade Signal Provider Guide, where you’ll have the chance to find everything you need to know to be able to choose the right Zulu Traders.
ZuluTrade Signal Provider – Profile
The upper part of a Signal Provider’s personal profile
We have already seen some data and values in the Traders page, but there are plenty of new ones for which we must pay great attention.
Let’s start with the top and left part of the ZuluTrade Signal Provider’s profile. Right on top we have a top size logo, the exact name of the Signal Provider, and the flag of the country from where is sending his signals.
Beside we have the current ranking position, the space for the 8 symbols seen in the retail in the ZuluTrade Traders page:
– Green dollar: Signal Provider is using a Live account.
– Blue dollar: Signal Provider is using a Demo account and has a Live account linked to his Signal Provider.
– ZS (ZuluScripts): this Signal Provider is operating on ZuluTrade+, using Zuluscripts. This feature allows the ZuluTrade Signal Provider to host his automatic EA trading strategy directly on the ZuluTrade’s server. In theory, this system should make the signals’ replication even more fluid and above all instantaneous.
– EA (Expert Advisor): the Signal Provider is trading with the MetaTrader Trading platform 4 (MT4), and he works using an Expert Advisor loaded on his own platform.
– ZuluTrading API: the Signal Provider is sending and managing signals using his own trading program that communicates with ZuluTrade through its API.
– FIFO Rule: the Signal Provider trades in accordance with the FIFO rule and also he does not use hedging techniques on the same instrument (eg, long and short at the same time on EUR / USD)
– Star: Signal Providers who received an average of 4 stars out of 5 in the voting made by investors followers with live accounts.
– Hedging: the Signal Provider is using Hedging strategies with correlated currency pairs.
– Medal: Zulu traders who have traded associated with ZuluTrade for at least 2 years, and that, in their Signal Provider careers, have always maintained on average a high ranking position, are identified as Zuluveteran.
– Calendar release: it identify those Signal Providers who historically have done a lot of operations in conjunction with the release of economic news.
Always beside, in the upper part of the profile, you can find the symbol of the broker the Signal Provider is using to send his signals (or the “ZuluTrade” symbol as seen in the previous chapter), and, further to the right, two buttons to go directly to the prior or antecedent Signal Provider in the Zulurank ranking.
Below we have the panel that the Signal Provider may use for his direct communications from his personal profile, which can be of two types:
– The Strategy Description, where the Signal Provider, in his own words, describes the strategy used, and sometimes he also gives operational advice to best follow it to obtain the most;
– The Updates, in which, instead, he can respond to questions or comments from his follower investors, or simply give updates on his trading evolution. Even though it might be written in a language you don’t know, there’s the Google Translate feature of directly incorporated in the profile page, to help you understand. In addition, to the follower investors who follow him with live account is given the opportunity to ask the Signal Provider to provide an update, as you can see from the requests.
The lateral side with the performance details
Now you can pass to look at the whole left side of this page.
Under the Follow button, with which you can link the Signal Provider to your account, you can find a long list of values:
– Amount Following: The total balance amount of all the Live accounts (only live) that are following the Signal Provider. Already seen and commented in the Traders page chapter.
– Profit: The number of pips gained or lost by the Signal Provider considering the closed positions only. Missing in fact the situation of win and lost pips with the open positions.
– Open positions: in addition to the previous “Profit” value, from here you can see immediately if the Signal Provider have any open trades at the moment, and if they are losing or gaining.
– Weeks: the number of weeks in which the Zulu trader began to trade connected to ZuluTrade, recording his performance data.
– Followers: The number of follower investors, with both demo and live account, that are following the Signal Provider.
– ROI: Return On Investment (ROI). Analyzed in the Traders page chapter, it’s not the classic ROI value you could imagine. They consider the true ROI, but only of the last 3 months, and then they annualize it, in practice they multiply it by four. You don’t ever have to think that the more this number is big the more the Signal Provider’s strategy is good.
– Trades: The number of transactions closed so far from that Signal Provider. It’s a value which is useful to divide by the number of weeks, in order to find an average value of trades made by this trader.
– Winning Trades: the actual number of trades closed with profit, and the relative percentage of the total operations. Moving the mouse over it there is another very useful indicator, that is the Signal Provider’s winning percentage for each specific currency pair.
– Average pips/trade: is the average value of pips earned for each trade. You saw it in the previous chapter, it can give us a great first overview of the type of strategy employed by the Signal Provider, but not necessarily revealing. Holding the mouse over the value you can observe other three. Average Drawdown shows the average of all the Drawdown accumulated by the Signal Provider. As we will see, ZuluTrade calculates the drawdown in a particular way, so it’s very important to understand the reasons of the calculation, otherwise you may confuse the information a data can give you. We also find an Average Best Trade Week, which indicates the average amount of pips of all the week best trades; it can be a useful data, but it’s more important to know how often certain types of profits are made. Same thing for Average Weekly Worst Trade, except that is considering the worst trade of each week.
– Average Trade Time: The average time duration of a trade, whether it’s closed with a profit or with a loss. Already seen, it’s an element that can give us a strong indication of the trading type carried out by the Signal Provider, but it should not stop us from continuing the analysis, since things could be different from what it seems.
– Maximum Drawdown: the most important value for portfolio construction, but the most controversial when considered in the version shown by ZuluTrade. We will see it in detail to understand exactly what this value displays, and for what it can be helpful. In any case, here is shown the maximum value, both in percentage terms and in absolute terms as number of pips, considering the entire Signal Provider’s life. Placing the mouse over the value, other 3 value will appear, which show the maximum drawdown always as a percentage, but considering three different time periods: the last year, the last 6 months last 3 months.
– Max Open Trades: an data already treated more than once. This is the maximum number of trades that the Signal Provider has kept open his account simultaneously. Moving the mouse over we find other 3 versions, reporting the last year, the last six months and the last 3 months.
– Worst Trade: the worst trade in the Signal Provider’s history. We must be careful though because this is not the worst value of a closed losing transaction, but the biggest loss a single open trade reached. In practice, it’s the worst drawdown that a ZuluTrade Signal Provider has suffered from a single operation.
– Best Trade: here instead it’s different. It doesn’t show the largest profit a Signal Provider reached with an open position, but the largest profit in pips achieved at position closed.
– Has Live Followers: Yes or No. Here ZuluTrade tells you if there are follower investors, but only among those with a real account, that are actually following the signals of the Signal Provider.
Necessary Minimum Equity: another of the ZuluTrade automatic calculations to try to help the follower investors in the management of their portfolios. This value attempts to answer the question: “How much should I have in the account if I want to follow this Signal Provider, assigning him a micro lot, to be sure I can replicate everything correctly?”. For beginners this could be a good starting point to avoid making disasters. It’s a value calculated taking into account the Signal Provider’s historical data, in particular the Max Open Trade number, and the Max Drawdown, for the simple reason that these two are the main values that affect the amount of margin required to be able to replicate all of the Signal Provider’s trade based on his strategy. As already said, this can be a useful value for the beginners, but not for the more experienced ones, because in this calculation is always used the ZuluTrade Max Drawdown, in its particular way, not the classic one, and, as we will see, this involves the possibility of significant differences in the validity of this value.
– Viewed: like the video viewing on Youtube, it shows how many times this Signal Provider profile has been visited by the users.
Profit made from following this trader
At this point we can move to the block in his personal profile immediately below. There’s the “Profit Made From This Following Trader”.
This is one of those details that cannot be used for analysis purposes, but that it’s good to have a confirmation of the validity and strength of the Social Trading as an investment vehicle. In this box are shown the information about the major follower investors that are following that ZuluTrade Signal Provider, and that are gaining the most amount of money.
You have their logo with the nationality, their account’s code number, the name of the broker used, and in the middle the precise amount of money earned up to that point thanks to that Signal Provider. In addition, some of these follower investors have turn their profile public, and you can click on their name to explore it and find out more information about their history.
Also Known As & Video
Going further down in his personal profile, on the left there’s the “Also Known As” block. If the trader had opened other Signal Provider profiles with other names, they will be shown here in this block.
This factor can show you some interesting aspects about a Zulu trader (or presumed). Some Signal Providers use some other profiles, because they need legitimately to try some aspects regarding the replication on the investor’s profiles. Some may have started with a single profile, but since they didn’t know the application of the ZuluTrade rules for Signal Provider, they have found themselves in trouble so they decided to start over with a new and clean profile.
Cases may be several. What you need to be especially careful about are those Signal Providers who have dozens of different profiles. In those cases you have to be careful and perk up your ears, because most probably it’s only a trader in search of commissions. Some of these take the same risky strategy, and they replicate it with small variations on different profiles, so that periodically some accounts among all may do fine and attract naive investors. Obviously you have to be wary of such traders, for the simple fact that they are not trader at all.
The ZuluTrade Signal Providers are encouraged to provide on their profile a video about their style, their strategy or that give advice. ZuluTrade rewards those who provide such a video giving them an higher position in the ZuluRank ranking. In any case, here is where you can find and view the ZuluTrade Signal Provider’s video.
ZuluTrade Signal Provider – Other information
At the bottom of the page there’s the last information block of a ZuluTrade Signal Provider profile. According to his characteristics, in this block you can find some references, but there are not necessarily all.
– Trader Status indicates if the Signal Provider at the moment is online, therefore connected to ZuluTrade.
– In case the Signal Provider does not use directly the ZuluTrade platform to trade, in Trader Platform will be indicated what type of platform the ZuluTrade Signal Provider is using, and if he use Expert Advisors.
– Correlated Pairs: ie the percentage of transactions that have been kept open simultaneously on correlated currency pairs. This can be interesting, because strategies based on currency pairs correlation can be very intelligent and mitigate the risk. Clearly, we need to understand if the Signal Provider use them consciously, with a knowledge of the correlations, or if he’s simply unaware of it because he opens up many trade on many exchanges.
– Hedging Strategy: When you hold open simultaneously a long trade and a short trade on the same currency exchange, that is called hedging strategy. This value indicates the percentage of trades that were opened with these characteristics. This is also a strategy that can be very wise if used with the right knowledge and the right strategy. But first, it doesn’t necessarily mean that a Signal Provider that follows this kind of practice is necessarily an expert. One should always consider the quality of his performances.
– Open Positions Duration: If a Signal Provider has a Long Term Strategy, and tends to keep open the operations for a long time to ride the trend, this value shows the longest time for which a trade has been left open on the Signal Provider’s account.
– Calendar Trader is the written version of the personal profile symbol “C” we have seen previously. It indicates a Signal Provider that has a tendency to open up his trade in proximity of major economic news released during the day and that can cause major changes in volatility.
– Important Disclaimer: ZuluTrade warns us of an important fact for the truthfulness of our analysis. That is, it tells us that all the data and the performance we can see on every profile, arise solely from operations that the Signal Provider has performed since it was connected to the ZuluTrade platform. In addition, the Signal Provider may not in any way alter his performance, or provide historical data to show different statistics. Everything you see here is the result only of what actually could be replicated across the ZuluTrade platform. Therefore, there is no tricks nor deceptions.
– Last Updated: How old is the data you are analyzing? Here you can see it, and we can say that ZuluTrade updates its data several times a day.
Well, We’ve already talked a lot, but we are only at the beginning of this section. Let’s continue with the next chapter about the charts analysis.