Zulutrade – Part 2: Being a Signals Follower

Filed under: Learn Forex Trading |

 

In the second part of this article, I will be looking at the viability of using Zulu Trade as a signals follower. Again, the signing up process for this is relatively easy, and you will need separate account to be a signals provider and a signals follower.

 

I found the signals follower account to be very advanced with regards to analysing the data of signals providers. You can create a portfolio of signals providers that you wish to follow based on their historical performances. For ease of testing, I have chosen the top five performers out of around ten thousand or so signals providers, and put these into a portfolio.

 

Another good feature of a Zulu Trade followers account is that you can backtest the cumulative performance of a number of different providers, and adjust your risk levels as appropriate. Therefore, if one provider is more risky in terms of drawdowns, then this will be reflected in the number of lots you trade with that provider, therefore balancing your portfolio and your risk levels. This can be done automatically by Zulu Trade with their built in algorithms, or you can do it manually by deciding on your risk levels yourself. All in all, I found this to be a very advanced and useful function.

 

Based on the historical performances, the five signals providers that I have chosen have been collectively profitable every month over the past year. So, I am going to let my account run in automatic mode for the next month, and if historical performances are reliable, then there should be a very high chance that my demo account should be profitable over the course of the next month. I will therefore report back a month later to tell you how this has gone.

 

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