Zulutrade – Part 1: Being a Signals Provider

Filed under: Learn Forex Trading |

This week, I am looking into the phenomenon known as Zulu Trade. For those of you that don’t know, Zulu Trade is a website that allows forex traders to become both signals providers and signals followers, and in the first part of this article, I will be looking at the viability of using Zulu Trade as a signals provider.

 

To begin with, the signing up process was relatively easy and required a simple email confirmation. I created my own signals provider to test the site, and create a service called ‘PA Trades’ (short for ‘price action trades’). So far, I have made three trade signals (see Figure 1), but I have come across a number of possible issues already.

 

Figure 1.

There are two ways to give signals, either by manually putting your orders into the Zulu Trade platform, or you can use one of the selected brokers and link your MT4 account to Zulu Trade for users to automatically follow. While this is a great idea, my broker was not listed, and therefore, for now, I have had to go for manually entering my trades into Zulu Trade.

 

Another issue that I have is that there seem to be some anomalies with the results. I currently have my page listing my worse trade as -250 pips, but in fact, my worst trade was only -37 pips or so. This is because I made a trade on gold, and the pip counting system seems to be much different on gold. The trade moved against me by 250 pips before coming good for over 300 pips profit. However, Zulu Trade seems to have listed this as a loss. Therefore, I have asked their support team to explain why this is so.

 

By using the Zulu Trade platform to put orders in, you are also only allowed to trade by one standard lot (although they tell me that this is not so when linking your MT4 account). Therefore, any money management rules cannot be implemented. Also, I am not overly impressed by the way that the emphasis of performances is on pips rather than money. Again, this means that money management systems are meaningless, as users are only looking at the number of pips gained, which is really irrelevant.

 

As a signals provider, I feel that Zulu Trade still needs to make some improvements. However, I feel that it is a good website and it has a large following, so there is potential money to be made here.

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