ZuluTrade Introduces the PRO-RATA Follow Mode

logomark Luca Puddu calendar Last Updated: November 2021 timer 4 min read
Connect with us

ZuluTrade has finally introduced a new method of management and allocation of the Lot Size for the replicated trades. In addition to the usual “Fixed” method, today you have also the “Pro-Rata Follow mode”.

Since its foundation in 2007, Zulu Trade has only ever offered one way to manage the lot size of the replicated orders on your trading account, i.e. the “Fixed” method. A Signal Provider could change the Lot Size of each new order, but the order replicated on your account had always the same Lot Size you had previously chosen in the settings.

The calculation of the Signal Provider’s performance then became a simple calculation of the pips gained or lost, and not of the corresponding money according to the Lot Size selected by the trader.

A Signal Provider could vary the Lot Size over time, so sometimes his pip could be worth more or less, but the follower investor did not have the possibility to vary his Lot Size in the same way, hence the pointlessness of showing the monetary performance. Better to show only the pips and use them as an absolute value.

This solution has definitely simplified things, and investors have been able to assess more easily the Signal Providers. However, at a theoretical level, this was definitely not the best solution in order to best replicate their performance.

One of the fundamental part of a Trader’s strategy is Money Management, or, in this case, the ability to vary the percentage of the capital at risk in every trade. To do this, the professional traders calculate the pips they decide to invest in a trade, and then they adjust the Lot Size in order not to risk more than a certain percentage of their funds.

An example?

Funds: 10.000 $

Capital at risk in a trade: 1 % = 100 $

Pips of Stop Loss: 50

100 $ / 50 pip = 2 $ = 0,2 Standard Lot = 2 Mini Lot = 20 Micro Lot

To the increase or decrease of the capital, but also to the changes of the pips of Stop Loss, the professional trader modify the Lot Size, to better manage the risk.

But this was not possible with ZuluTrade, or rather, it did not make sense with the “Fixed” option, as investors could not replicate this changes of the Lot Size, so much so that many Signal Providers had adapted their strategies to this type of fixed management.

Table of contents

How the ZuluTrade Pro-Rata mode works

zulutrade pro-rata

Today, with the introduction of Pro-Rata mode, Zulutrade has finally opened the door to Lot Size and money management as a true professional traders.

Selecting the Pro-Rata mode on the Settings page, instead of the Lot Size value of the “fixed” mode, you can choose a percentage value.

That percentage represents the proportion against which the investor wants to replicate the Lot Size selected by the Signal Provider.

An example to clarify?

You have set 10% as Pro-Rata value. The Signal Provider opens a trade with a Lot Size of 1 Standard Lot, in your account instead the trade has been replicated with 1 Mini Lot, that is 0.1 Standard Lot, that is 10% of 1.

Or, you’ve set 50% of Pro-Rata, the Signal Provider opens a trade with 2 Mini Lot, in your account instead is opened a trade with 1 Mini Lot, because you choose to replicate 50% of that, which is only half.

The new possibilities with the Pro-Rata Follow Mode

This new option opens up a whole new world. The performance of a Signal Provider may be seen in a total different light, and those that with the Fixed option could be anything but attractive, with the Pro-Rata could become a workhorse of many portfolios.

Investors now have both options available, Fixed or Pro-Rata, and they can choose one or the other for each Signal Provider.

We should immediately point out that the Pro-Rata mode is not the solution to all problems in which an investor can stumble with ZuluTrade, as with any other Copy or Social Trading company, and that it may not always be the best solution.

Before deciding whether the Pro-Rata option is convenient or not, and to what extent, you should be able to carry out a study on the actual feasibility.

Let’s say we have an account of 1,000 $, and that we follow with the Pro-Rata mode at 10% a Signal Provider who operates with an account of 10,000 $, and that sometimes opens some trades with a lot size of 0.01 Standard lot. This Lot Size is already the minimum allowable with the ZuluTrade platform (and with the vast majority of brokers), so it’s not possible to segment it further.

In case you go below the minimum allowable quantity, that is a micro lot (0.01 Standard Lot), ZuluTrade will not replicate that trade on your account, because it would mean not respecting your settings. In such a condition you may find yourself not replicating several trades of that Signal Provider, and that would mean undermining the entire strategy.

All this to say that there are still situations where you have to go with extreme caution in the decision, and that under certain conditions the Fixed mode might still be the most convenient choice, even with Signal Providers that vary their Lot Size.

See you soon.


Visit Broker
(Your capital is at risk)

About the Author

Luca Puddu

Broker Expert

Always full of different interests, Luca started to get interested in the field of personal finance in 2014.

His self-taught studies led him year by year to become increasingly interested in the investment field.

To date, Luca actively invests in the stock market and cryptocurrencies, focusing on rising markets and the industries of the future.

His main role at InvestinGoal.com is to analyze and study in the smallest detail the brokers and their platforms, while checking carefully that the information shown by them is genuine.

In this way, he provides readers with a complete and truthful overview of the broker they might be interested in.


Leave a Reply

Your email address will not be published. Required fields are marked *

Keeping you better informed

Find and Compare the Best
Online Brokers for You

Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
ADVERTISER DISCLOSURE: InvestinGoal is completely free to use for all. Though we may receive a commission from brokers we feature, this does not impact the results of our reviews or rankings which are conducted with complete independence and objectivity, following our own impartial methodology. Help us continue to provide the best free broker reviews by opening your account with our links. Please read our Advertiser Disclosure to learn more.
Copyright © 2021 InvestinGoal.com – All rights reserved. / Privacy and Cookie Policy / Basic Terms of Use / Sitemap