Zulutrade:help for newbies. Examples & recommendations

Beginner Questions
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[I]EVERYTHING WRITTEN HERE IS BASED ON MY OWN EXPERIENCE ONLY AND NOT OBLIGATORY TO FOLLOW.[/I]

Hello!

I see topics and posts asking to explain the real account settings and recommend good signal providers appear more and more often. Though I wrote about it earlier, I would dare repeat it, with some modifications. The topic will consist of several sections (posts) , and each of them will deal with a separate problem. I hope the topic will be helpful. Let’s begin.

[B]INTRODUCTION[/B]

Pretty much time has passed since I started trying [B]ZuluTrade[/B]. So I have gained some experience, and the main thing is that I have felt all the delights of a blow up, a big one (of about $2000), on my own back, more than once. Of course, this fact doesn’t make me a Forex guru, but I’m a long way from being a beginner either among those who trade with a demo account. During all this period of time, I haven’t ever left the [B]ZuluTrade[/B] service, so my experience is fully connected with it.

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May not be all true?! So this is a fictional thread?

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I mean not obligatory for use :slight_smile:

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[B]PART 1. DEMO AND REAL ACCOUNTS[/B]

I will not repeat that a demo account is for trying, but one shouldn’t get carried away by it, as a demo account doesn’t require any strict discipline from you, there is no responsibility there, no fear of losing anything, no adrenalin. But if you want to try a provider with a demo account, pay attention to the following peculiarities:

Initially, you have USD 50,000 on your deposit, [B]Lot Size[/B] is Standard (it is of no use changing it, as the [B]Lots Multiplier[/B] value will change as well), Lots Multiplier 1, pip price - $10, margin (the sum required for opening a deal) - $500 per 1 standard lot.

Many people want somehow equate this account to a real one but don’t know how. I’ll explain that. If you are going to open a micro account at [B]Alpari[/B], the settings will be as follows:

[B]Lot Size[/B] Micro, [B]Lots Multiplier[/B] 1, pip price $0.1, margin $2-3 in average, depending on the pair, per 1 micro lot.

One can see that everything there is 100 times lower than in a demo account. I. e. if you open a micro account at [B]Alpari[/B] for an amount of $500 and use the settings as shown above, you can get an exact analog of a demo account but minimized by 100 times.

And if you earn 125 pips or, roughly speaking, $1,250 in a demo account, it means that in a real account those 125 pips would make $12.5.

This may be it, I suppose. Part 2 is to come in a few days. :slight_smile:

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In my opinion Zulutrade is a piece of crap.

Learn to trade peeps.

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It’s worse than crap. It’s an illusion at best.

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A mirage…

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Like I said, a mirage, lol.

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[B]PART 2. SIGNAL PROVIDER SELECTION[/B]

For (more or less) successful trading with [B]ZuluTrade[/B], you have to select appropriate (for you, personally) providers, which is not that simple, considering that there thousands of them but only a few filters. Besides, you must understand that there are no bad providers – there are just lusers. This post contains general recommendations only.

[B]1. Select providers that trade their own money[/B]. Not a single demo account can give you that feeling of responsibility, as a real one can.
[B]2. Look at the provider’s age[/B]. But you don’t have to look for a several-year-old provider: they just don’t exist in principle.
[B]3. The quantity of the pips earned[/B] – no less than 10. A lower number is not just serious enough and may be loss-making sometimes.
[B]4. The Diagram[/B] – it gives quite a representation of the provider. Beware of the providers with too big falls.
[B]5. The Worst Trade[/B] – it must not exceed 500 pips. The less is the more advisable.
[B]6. The percentage of Winning trades[/B] – no less than 80%.

All these recommendations represent the top of the iceberg only. They are the recommendations one should follow to select a provider for a preliminary acquaintance.

I will write in further posts how it should be done.

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Hi !
I’ve just visited this forum. Happy to get acquainted with you. Thanks.

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[B]PART 3. DEPOSIT[/B]

You often ask whether it is advisable to put a STOP yourself, and if yes, how much. What is the Max Open Trades, how much money do we need to have on the account to start working with [B]ZuluTrade[/B], etc.? I will try to answer those questions, basing on my own experience.

Well, for the beginning, you need to have on your account a sum which is no less than the minimum deposit required for the account activation. When the account is activated, you need to have on it enough money to complete at least one full trade. Providing that, it can be assumed that you can work with [B]ZuluTrade[/B]. The cost of a trade varies with different providers. There is a way to calculate this value: learn how many [B]STOP[/B] pips the provider uses, multiply the number by the price of one pip and add the margin (find the pip price and the margin here).

Here’s an example. The provider puts, say, 180 [B]STOP[/B] pips at the maximum. And if you have a micro account, you will need 180 pips plus the margin amount on your account, to be able to open a trade with a lot of 0.01 for EUR/USD. 180 pips makes 0.1x180=$18.00 plus the trade opening margin of $2.80. So you will need $ 20.80 to complete the trade. This is applicable to the [B]STOP[/B] of 180 pips. If a provider uses more or less STOP pips, the sum required for a trade will vary as well.

Basing on how much money is needed for one complete trade, we can easily calculate how many open positions we may have at a time. Let’s say you got $150 on your account and you added a provider with the STOP of 180 pips. Our calculation shows You may use the [B]Max Open Trades[/B] not exceeding 7, as 150/20.80=7.20. So no [B]Margin Call[/B] will be applied to you.

[I][B]IMPORTANT. If the providers gives more than 180 STOP pips for any of the trades, the required sum will be bigger for the trade, too. So the Margin Call becomes possible in this case. That’s why you have to make sure that the STOP doesn’t exceed the previously planned values.[/B][/I]

With the providers that don’t use the [B]STOP[/B], it is all quite different. As the [B]STOP[/B] value is not given by the provider (or a too big value of, say, 500 pips is given), you will have to put it yourself. The easiest way is to find the [B]Worst Trade[/B] value and put it as the STOP. But there is a nuance in this case. The fact that a provider has a floating loss not exceeding 180 pips doesn’t mean that the provider won’t ever have a bigger value. For instance, one of the top providers, [B]100% winning trade[/B]: their recent trades show that the [B]Worst Trade[/B] did not exceed 227 pips, but right at the moment (of writing this post) the provider has open positions for trades with –250 pips. Keep that in mind!

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[B]HOW MUCH CAN BE EARNED WITH FLY ON THE WALL?[/B]

Let’s make a calculation. For example, you got a micro Alpari account and 400 bucks on it. [B]FLY ON THE WALL[/B] has the Worst Trade of –179 pips, so you can put the [B]Stop[/B] of 200 pips. That means you will need, roughly speaking, $20 for one open position. Your 400 dollars are enough for 20 times as much as the position cost, i. e. for 20 lots (not standard, but micro ones). So you can safely set the [B]Lot Multiplier[/B] to 20 and the [B]Max Open Trades[/B] to 1. In this case you will only have 1 open position with the lot of 20.

Now, the main thing. [B]FLY ON THE WALL[/B] opens a lot of simultaneous positions, and you will have only one of them open, so you have to count how many non-simultaneous trades the provider performs in a month. My own counting says that [B]FLY ON THE WALL[/B] has made 63 non-simultaneous trades for the recent 3 months, though the stats show that the provider has had about 140 trades. Those 63 positions are the ones that you would have open if you used the abovementioned settings.

Then… The average number of the pips per trade is 18. From my experience I can safely say that you will get some 12 pips. Let’s calculate: 63/3=21 trades per month. From each position you would earn 12(pips)x20(lots)=240 pips. In a month, 21(number of trades)x240(pips from one position)=5,040 pips or $504.

So, having 400 dollars on your account, in a month you would earn 504 dollars, i. e. you would multiply your deposit by 2.26 or added 126% to it.

That’s the way it goes. The calculations should not be considered as exact as only possible, but the general situation is like that. I will be happy if somebody finds this post interesting. :slight_smile:

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I have a demo account with ZuluTrade and for the first 5 days it is kicking butt! I need additional guidelines on how to select the best from among the 2000 or so Signal Providers… Can you help with this?