How to choose the best Zulutrade signal provider

On January 6, 2016 | By | In Zulutraders

When you visit the Zulutrade website, you will see hundreds of signal providers with their statistics displayed next to their performance graphs. As there are many trading strategies (long term, short term, fundamental, technical, hedging, scalping, etc…), so there are many different signal providers with their trading strategies.

Choosing the right signal providers is crucial to your investing, because your capital will depend entirely on their ability to trade successfully in the long run.


So what are we looking for?

What are the best Zulutrade signal providers and how many should we follow?

Depending on the amount of the capital that you will be investing, you may choose from 1 to 10, 15, 20 even more Zulutrade signal providers. If you’re starting with only 100 dollars, following more than one trader could be difficult. You will have to follow just one trader which could be risky, considering lack of risk diversification. When a trader starts making losing streaks, you can’t outweigh his losses with somebody else’s winning trades. That’s why I always recommend following more than one trader who trades different currency pairs and is using different forex trading strategy.


One of the signal provider choice indicators often used by many investors is the “amount following” feature next to the trader’s statistics graph. This indicator is quite important, but you must understand few things here…There are only few percents of people who are really making money in forex. The rest are either loosing or making it on the break even level. And the huge amount following a particular trader usually means that he made significant amount of pips BEFORE he made to the top list of Zulutrade signal providers. This means there’s a chance that he could start changing his strategy (because of greed or positive recency bias) or he might not cope with his psychological issues. There’s also a losing streak scenario (if there was none yet) and changing market conditions that could turn his trading upside down.


Traders rotate very frequently in the Zulutrade top list and the number one trader who is followed by 1000 investors could lose 1000 pips in a few days. Don’t rely too much on the crowd and if you do, watch your trader carefully. If there are signs that his strategy is no longer working or he is losing emotional control – unfollow him.


Zulutrade signal providers


Don’t ever follow a trader who has a 100 % winning percentage. It has nothing to do with a traders’ “holy grail” system rather than his ability to keep his losing position open until it turns positive. He could withstand a 500 pips drawdown just to make 10 pips of profit of his demo account. Yet you will have a margin call following him with 50 USD and 0.01 lots per trade. It always makes sense to take a look at his trading history, especially the low and high numbers.


Check if a trader is making consistent returns every month. Ideally the performance graph should show similar length profit bars. If they slightly differ – that’s OK, but if they differ a lot, that means that trader is inconsistent. And that’s already a warning sign.


Check if a trader’s maximum historical drawdown corresponds to his suggested trading strategy description. If he states that max. drawdown is 400 pips and you see -800 pips, who can guarantee that there is not going to be larger drawdown in the future? If he didn’t keep to his drawdown plan once, he most probably won’t do it the next time, when the market turns against him.


Do not follow a trader who is using a martingale or grid strategy. If the trader starts adding more and more positions to a losing trade hoping to recover, it’s already a warning sign. Grid or martingale strategy works best in a ranging market conditions, but if a trend begins and a trader is trading against it, then huge drawdown will most likely occur.


Stop losses must not exceed the maximum number stated in the trader’s strategy description. If it’s 50 pips, then anything more than that is deviation from the trading strategy.


If a signal provider is using EA (automatic trading), he should manually intercept it if necessary to change/adjust the parameters, stop trading during economic events, etc. Manual adjustment in EA trading is a must, because there is no such EA system that could always win in a changing market conditions.


It’s better to choose a trader with few opened positions at a time (1-6) than the one with 15 – 30 positions. This means that you will be able to follow him with a small necessary equity which in turn gives you the ability to follow more signals providers (greater diversification). Besides, you will suffer smaller losses, when the market goes against you.


Many small gains might be a signal that a trader is not interested in helping his followers’ accounts grow, but rather earning his own commission. Remember that a trader who makes 100 pips per 1 trade makes only one time commission and is concerned about his followers’ profit. On the other hand if a trader makes 100 pips with 100 trades…well, his trading might be all about commission.


Trading strategy updates and communication with followers are very welcome in a signal provider’s profile. This usually shows that the trader cares about his followers and cares about his reputation.


Those are basic points that you should take into account while investing your money in Zulutrade signal copying service. Applying them will make your Zulu life much easier and safer, but have in mind that it’s no “holy grail” system. Logical system that’s been profitable in the long run and continuity are still the key elements that many traders lack.

Open real account                            Open Zulutrade demo account


Comments are closed.