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Why do traders lose money on Zulutrade? If you start to monitor Zulutrade followers, you will see that more than 95% of all Zulutrade signal followers lose money. Like in the stock and forex markets, 95% of traders are losers. The reasons are greed and bad money management. So, Is the Forex Zulutrade signal provider scam? No ZuluTrade is excellent, but traders must know to watch and pick. First, please see our Zulutrade review.
How does ZuluTrade work?
Zulutrade is a mirror platform that works based on two sides. On the one hand, traders trade using their own live or demo account using the broker’s platform, earning a small commission per copy of the trade. On the second side, copy, traders can copy trades from providers.
Now I will give you an example of how people lose money in the Zulutrade platform, and signal providers have perfect statistics :
I will not show the signal provider username because I don’t hate this guy; he is doing this to earn money and maintain perfect statistics.
This signal provider trades :
– max 2-4 traders per time
– he has a 1:1 risk/reward ratio
– The max negative balance per trade (trade position drawdown) is 100 pips
– he follows the trend
He is excellent!
But here is what he does (like other signal providers) :
See, in July, he has terrible results. He opened several trades and lost positions in a row. See trades :
No trader wants to recover all losses, and he will do this: He will open several trades in a row without pin stopping loss, try to earn profit and several pips, and recover excellent monthly results. So if the Zulutrade signal provider lost 450 pips in two days (like profit from the last 2 months), he would try to earn more than 450 pips in one day. Now, he will open many positions (some traders open 15 or 30 positions) and try to recover losses (for example, 15 positions with 30 pips profit).
He will succeed in 80% of situations. If he loses the money, he will close the account and open a new one, or if he makes success, he will have every month’s worst trade below 100 pips and perfect statistics.
So what do you need to do if you want to earn money on Zulutrade :
1) Invest 5% of your balance. If you have $1000, then you can risk $50 per trade. So if the worst trade for some traders is 100 pips, you can trade with micro lots, and max open positions can be 5 (so you can risk 5 positions and $10 per each position). You can trade with mini lots, but you will need $2000 for 1 mini lot open position. This rule 95% of all traders don’t follow.
2. Choose traders who have an excellent risk-reward ratio. Signal providers must trade at least 6 months before you start following them.
3. Pick a max of 2 open positions per trader when you pick signal providers and 2 positions per trade, then go to settings and pick the BACK TEST option. Make a backtest for 6 months and see the chart for each trader. The trader who uses this kind of scam (multiple open trades to recover losing positions) will have bad results because you choose only 2 open trades per position.
The perfect signal provider is:
– max two open trading positions at the moment
– the average risk is smaller than the average profit (if the average risk is 50 pips, then the average profit must be more than 50 pips)
– for USD currency pairs, stop loss should be 25 pips for 25 pips profit or 50 pips risk for 50 pips profit, etc. Risk should be 25% to 50% of the daily average true range ATR (if EURUSD volatility is 100 pips per day from lowest low to highest high, then 25% is 25 pips and 50% is 50 pips).
– watch price action and Fib. and critical levels
– when a signal trader has several losing positions, he must be a steady trader. He does not open several positions in a row.
This is it.
About Zulutrade accounts
The Demo Account (DA)
If you’re not confident that Zulutrade offers a good trader around the globe, you may open the demo account 1st. You may observe the performances and pursue them openly through virtual money. If it looks like you profited from your account, you may register with obtainable brokers to deal with the real money and begin to produce your portfolio.
Zulutrade Live Account Brokers
Several popular forex brokers like Saxo, Alpari, Interactive Brokers, FXCM, etc, believe in ZuluTrade. This showed that such a platform provides a big deal for several forex traders. Nevertheless, I suggested you register with AAAFX broker, as there’s no monthly membership and no commission. AAAFX provides a gratis to use the forex signal by ZuluTrade, for which you must pay only the standard price for the brokerage. This occurs because the ZuluTrade innovative broker is the AAAFX. However, if you wish to open this with another obtainable broker, that is fine. You may do this, but remember there are extra charges. Only ensure you open this with the broker, which you can believe. While using the AAAFX, I had a good time with the client service, and most importantly, I by no means had a problem with withdrawal and deposit wire to a bank account.
Therefore, that is a Zulutrade review. Are you willing to trade carelessly while learning from great traders around the globe? You should visit the website www.zulutrade.com today.
Zulutrade advantages: The Ulutrade platform offers fast execution, speedy signing, and the ability to connect your trading account in a second. You do not need to buy Va VPS or install scripts and expert advisors —everything is prepared for you.
Zulutrade disadvantages: I haven’t liked Zulutrade servers in the last few months. Some traders create excellent trades, but many signals do not appear. As a trader, I see very often in my Zulutrade account message, “This trade has not been sent to any ZuluTrade followers because the signal provider account was disconnected when it was opened.”.This is not a problem with my Metatrader platform or my private VPS – it is a problem because Zulutrade servers are overloaded. I know – it is not easy to accept too many Zulutrade users. I hope that this will be better in the future.
As every coin has two sides, let’s mention here that there are thousands of signal providers; it is thus more challenging to pick the right one. The good thing about that is that you can pick either good ones or lousy ones to oppose what they do, but still, you need to comb a lot to narrow down your candidates. Find the one that will best suit – not only your successful trades but also your profitable trades is harder than it might appear at first sight. You can narrow down successful ones, but you need to find the one that is adjustable to your money and settings. It might also take some time to see what strategy fits someone’s good moves.
A risky thing for you is following a risky trader who makes good hits and suffers more significant losses. Now, the good thing is that you can set alerts to inform you, even on your phone or tablet, but if you did not set up a stop loss, you must react manually and promptly. Caution is required for another thing: anyone can be a signal provider, even you, even though you might be a beginner. That also means there might be another “you” who isn’t sure what to do.
The main problem might be that you can send signals without trading with your money. That means someone can do crazy things without risking real money, so don’t fall for that. Pick those with good history (and long history)
You can benefit significantly from Zulu’s way, but you must educate yourself, roll your sleeves, and find a perfect match.
How much money should you invest?
Here are some quick tips. If you wish to follow several traders simultaneously, you should try to have about $600 for every mini lot open. See how that works with a demo account, which is a free trial.
It’s not that only the demo account is free; everything else is free. Of course, you need money to invest, but Zulu won’t charge you any fees. You can see everything in your account, and at “settings,” you can set open lots, add new traders, or dismiss the existing ones.
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Customer support
One of the best proofs that Zulutrade is not a scam is its excellent 24-hour-per-day online chat support. You can call or send an email. There are several languages that you can contact the support team on. If you want to ask for something simple, you can call. Many reports show that someone always picks up the phone, and for email, it is regular – within 24 hours, you get your reply. If you have more complex questions, maybe you can give more details in an email. Both have proven the best way to get things sorted out, not just with Zulu but with every company; you can send an email and call.
If you are a signal provider, sometimes you can wait a few months for payment, but payment will come.
Open a Zulutrade account and receive free forex and binary options signals.
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
