Zulutrade is the most famous, largest and one of the oldest signal copying services (exists since 2007). Its scope is evidenced by at least the number of traders from a fairly large number of countries, which exceeds 15,000 people.

Zulutrade site

Autocopy service Zulutrade

As already mentioned in the introduction to auto trading, these systems are more attractive than PAMM accounts in the absence of non-trading risks. Several dozen of the world’s largest brokers and banks work with Zulutrade, although there are also offshore ones (Instaforex, Weltrade). It is clear that the latter are not recommended for working with Zulutrade with the available opportunity to open an account in a protected jurisdiction. Traders and their strategies can be viewed at zulutrade.com by selecting the “View” option.

You can register as a trader at the link: https://ru.zulutrade.com/trader-program. By clicking on the trader’s name, we get a detailed chart. First things to notice. The price at which the investor receives signals goes to him in Zulutrade already taking into account the manager’s commission – which means that it is profitable for the trader to make the largest number of transactions without worrying much about the result.

If the previous trade was successful and many investors connected to the trader’s account (zulutrade displays their number), then even if the trade is not very successful, the manager will still be in profit, unlike investors. Nevertheless, it is difficult to say that zulutrade is targeted at traders, since the manager can withdraw this reward only about two months after receiving it.

In fact, all active managers are represented for subscribing to trading signals; The top ten from Zulutrade itself is formed according to undisclosed criteria, so the investor does not understand why certain accounts are included in it. In fact, it looks like an invitation to invest in the best PAMM accounts, for example, from Weltrade, where the leadership of the account is absolutely not an indicator of its reliability.

Because of this, the best accounts are often updated, which makes investing through Zulutrade very difficult, if not impossible. In addition, unlike PAMM accounts, in Zulutrade you have to focus on profitability in points, and not as a percentage of the deposit; ROI is not an adequate reflection of income.

Setting up Zulutrade

Nevertheless, at the same time, the service displays the full statistics of the manager on deals (visible below the strategy graph in the “History” tab). The left sidebar also contains a summary: the total number of trades, the number of profitable ones, the average trade time, drawdown and the maximum number of open trades; in addition, the number of pips for the best and worst trade. There is an indicator of the investors’ earnings for this trader, which once again shows a noticeable focus of the system on investors.

There is an interesting function that shows the slippage in points for each broker where this strategy is available (the “Slippage” tab). There are even warnings like “the percentage of successful trades for a trader is 99%, there is a possibility of a strong drawdown.” At the same time, the funds of subscribers of the top strategy can exceed a million dollars – a very rare occurrence for Alpari PAMM accounts.

The possibility of reverse copying trades (i.e. the same lot, but in the opposite direction as compared to the master account) is very interesting – in this case, merging any martingale strategy can bring you serious profit. Since there are enough martingale systems in Zulutrade, this opens up opportunities for experimentation. The last interesting feature of Zulutrade is that investors cannot copy a trader’s trades with a proportional lot (the displayed trading lot is set equal to one everywhere); thus, the volume with which the copied deal will be opened on the investor’s account should be set up and fixed in advance.

In principle, if you want to invest in top strategies, you can use the following instruction. First, select a broker with minimal slippage (the “Slippage” tab will show the level of losses) by opening a number of strategies you are interested in. Practice shows that the best broker in terms of slippage is likely to be AAAFX, created specifically for Zulutrade. You replenish the broker’s trading accounts, after which they are automatically connected to the auto trading platform.

Further, it is possible to subscribe to signals in manual and automatic modes, and several traders can be collected on one trading account at once (while it is possible to manage the total level of risk that is distributed among the connected traders). In this case, it is better to set the risk no higher than 50% and use the automatic mode to begin with.

The manual mode has the advantage that you can set a limit on the total number of open transactions on the investor’s account and the feature that the exposed risks can be higher than 100% – for example, if you are ready to replenish your account. By clicking the “Simulate” button, you can build a summary chart of strategies based on historical data – most likely it will be deceptively good, because the strategies you have chosen were based on a positive previous profitability.

But even if you have chosen options with stable trading for about a year or more, you should not forget that this is only historical profitability, which (as in PAMM accounts) does not guarantee anything for the future. Another feature of Zulu is that you can copy portfolios of other investors by going to the “subscribers” tab in the “traders” section. I think the risks here are at least the same as when investing in managers – or even more.

If you look at most of the strategies presented on the platform, you will find several simultaneously open trades. This can be both a consequence of the trader’s desire to get more profit from subscribers, and the result of the impossibility of varying the trading lot by the trader, which has to be compensated for by opening new positions – especially since the very multi-strategy of martingale in Zulutrade strategies in Zulutrade does not cut losses, but fight them with methods ranging from martingale to sitting out. So if you do not set a reasonable level of risk (in fact, an analogue of a trading leverage), then in case of a drawdown, you can lose your deposit faster than the strategy managing the deposit will do.

The result may be that the investor’s deposit will simply merge, while the strategy may recover and continue working – a situation that is impossible in PAMM. At the same time, there are strategies that do not open more than one transaction at a time – if the manager does not delay the transfer and reasonably fixes losses, then a sharp drawdown does not threaten such an account. However, gradual draining is unlikely to be much better. Finding a middle ground between these cases is a task so difficult that for me the question is whether it can be solved at all.

Since the movement of any currency pair is chaotic, there is no reasonable approach that allows you to choose the horizon for investing in trading both in one currency pair and in several of them. However, looking at smooth yield curves in retrospect, there is always a sense of the possibility of stable earnings, which attracts more and more investors to Zulutrade, increasing the amount of money in the system from year to year.

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