My favorite trading signals marketplace provider – ZuluTrade – just sent me an e-mail letting me know about some cool new features and improvements they’ve implemented. I’d like to pass this info on to you in case you are either an existing ZuluTrade user or are thinking about signing up. In my opinion these new features are very important – especially one that I will point out.
Here is the list of new features taken straight from their e-mail to me (quote):
- 700 pips maximum allowed drawdown for Signal Provider – Signal Providers are prohibited from keeping open positions which go lower than 700 pips. From now on, Signal Providers who fail to comply with this rule, and keep floating losses at more than 700pips per trade (10,000pips for XAU/USD) will face penalties that may extend to banning their account and payments.
- 100% winning trades Warning Sign – if a Signal Provider always aims for 100% winning trades, this may be dangerous for Live Followers’ accounts, as he may choose to hold losing positions for long periods of time, with huge drawdowns before a potential recovery. Such strategies may seriously expose Live Followers’ capital.
So from now on, you will get a Warning Sign for all Signal Providers with 100% winning trades ratio.
- Trades executed outside our Signal Provider’s Trading Compliance Rules (Ghost Trades) will not be taken into account on the Signal Provider’s Performance Statistics and Trading History – since trades executed outside our Trading Compliance Rules cannot be executed on Live Followers, our statistics will only take into account trades from which a Live Follower could potentially receive. This way Signal Providers will avoid trading strategies that abuse the Rules and the Performance Statistics.
This will apply retrospectively as well; any non-compliant past trades will be removed from the Signal Provider’s Trading History and will not be taken into account in calculating statistics and in Signal Provider performance.
In my opinion the 700 pip maximum drawdown and the “100% winning trades warning sign” feature are VERY VERY important. So many shady signal providers took advantage of newbie ZuluTrade users by fooling them into thinking that their signals were 100% successful that it’s about time the ZuluTrade team put an end to this nonsense. The worse is when the signal provider uses a super wide stop loss of 600 and more pips and then lets the the trades ride until – they hope – the market turns and they close at a profit. This can put a SEVERE drawdown on your account and you may not have enough margin to weather the drawdown. Most often the trades just end up chewing more and more of your account equity until they close due to stop loss. Perfect example of this is the recent super popular “Fly on the wall” signal provider. He did this exact same thing, and he ended up crashing and burning. A ton of people lost a lot of money!
So what I’m suggesting here is that you fully take advantage of these two new features that ZuluTrade added.
Ok, that does it for this post. I wish you all the best of luck with your ZuluTrade account performance.