We appreciate your frequent updates. Keep sharing your feedback.
Today we have enjoyed our best day in “terms of pips”:
10 trades, 9 wins.
Total performance today: +187 pips.
Some of them has been decided to be traded with 0.02 lots, others with 0.01 lots. It depends on the market situation, and the global risk to a specific currency, and the real account capital.
What means in a real account +187 pips profit when managing an account with responsible and variable money management? Here it goes the answer: +1,5% in the day . (The result in percentage of capital would had been even bigger in case all the trades were trades with 0.02, but this is more risky too).
TIP: For this project it’s so important for us to manage a real account, and to make a real money management according to the available capital, and risk control. This is the best way to trade, and the best way to follow us, using a pro-rata scheme. Forget the unlimited positions with unlimited risks. In that way if we decide to risk less in some trades adjusting lot size Zulutrade would do the same with the capital of our followers, adjusting the lot size accordingly.
As commented in previous posts we are 2 traders working together, 2 people talking and exchanging analyses about the trades opened by our EAs. Whatever we decide is the result of the consensus between us. If we analyze something and we don’t agree about it we decide to do nothing.
RECOMMENDED SETTINGS FOR INVESTORS
in our description strategy we have updated the recommended settings, and we would like to extend the explanation about money management, and recommended settings for followers.
First of all we would like to be extremelly clear about this point: success on Forex trading depends on multiple factors, but the most important of them is Money management. A trader can win 99 trades, and loose all his account in the next strategy, just because the position size was not correct (too high risk), multiple trades in the same strategy (too high risk), or trader decided to open more and more trades (and even bigger trades) when price is going against him (too high risk, martingale).
All your trades would be same lot size.
You will need $500 to copy all Trader’s positions with 1 micro lot each (0.01 standard lots).
With this method you can follow all our signals with 0.01 lots. To do so you would need to invest a minimum of $500 to have enourgh margin and proper money management.
Recommended lot size using fixed lots:
If you follow with $1000 0.02 fixed lots
If you follow with $2000 0.04 fixed lots
If you follow with $3000 0.06 fixed lots
If you follow with $5000 0.10 fixed lots
If you follow with $10.000 0.20 fixed lots
Your trades would be opened with variable trade size, depending on the trade size used in our account.
Example: our account is 1000€. If you invest 1000€ your account will use the same lot size than us.
You will need $1000 to copy all Trader’s positions with 100% ratio.
With $1000 we trade variable size trades of 0.01 and 0.02 (exeptionally 0.03). There can be more than one trade in the same lot, with different sizes (for example 0.01 + 0.02)
Other examples using Pro-Rata:
$1000 we trade 0.02 lots, you trade with 0.02. We trade 0.01, you trade 0.01.
$2000 we trade 0.02 lots, you trade with 0.04. We trade 0.01, you trade 0.02.
$3000 we trade 0.02 lots, you trade with 0.06. We trade 0.01, you trade 0.03.
$5000 we trade 0.02 lots, you trade with 0.10. We trade 0.01, you trade 0.05.
$10.000 we trade 0.02 lots, you trade with 0.20. We trade 0.01, you trade 0.10.
Real example of Pro-Rate from one of our followers:
Which one to use, and why
There is reason to use variable lots size. The risk depends on multiple factors (pair, timeframe, day of the week, different trading times, news or speeches, other positions in correlated pairs, floating loss or benefit in other positions, etc.). We can not take same risks if we are constantly trading in different conditions. We can not take the same risks in EURUSD and GBPJPY or GBPAUD, as their volatility is different, and they move different quantity of pips.
It depends on our analyses to determine the best risk for each moment and adjust the lot size accordingly, so our recommendation for our investors is to use Pro-Rata method.
If you have questions, just ask us.
Here you can see the summary of last trading day of the week, thursday 18/04/2019, (friday 19th was bank holiday).
Trading activity: 8 trades, 8 wins. +200 pips in one day.
Best trade: +50 pips (sell EURJPY)
This have been the best trading day for us until now.
In terms of capital we lived our best one-day growth here at Zulutrade: +2,1%
here we have a new example about the difference between “only pips point of view” vs “capital point of view”.
Today we had a flat day, which means that we finished the day without gain from “pips point of view”: +0 pips
However we made some money!!! In the previous screenshot you can see that the profit increased from 112,23€ to 115,07€
We are talking about a +0.25% growth in terms of capital! It’s not too much, however a daily 0.25% multiplied by 200 trading days is an annual return of 50%!!
Here you can see the result in our MyFxBook.
This happened this way because we use different lot sizes depending on the strategy, and the confidence we have about them. Moreover we decide the lot size depending on the stop loss. There are multiple factors, but we think with these examples you can easily get our point.
You are welcome to follow us. Please if you decide to do so we recommed to do it using Pro-Rata setting to optimize the strategy, and reduce the risk.
In the previous comment published today 23th we was exposing our point regarding the pips point of view ” vs “ capital point of view.
Now we can update the performance with some trades closed later. Now performance in pips is +40 pips:
And +0.55% in terms of capital growth for 23th April:
TIP: as a trader it’s important to understand that draw downs are something usual when trading Forex. The important is to have the hability to control them, to recover them and beat them in the long term.
Dear friends and followers,
Today 24th April we have beaten our best day here at Zulutrade:
In terms of capital management this represents a growth +2,9% in our real account.
This is our 7th week trading trough Zulutrade, and our current performance is +1687 pips with a Max Draw down of -163 pips.
Dear friends and followers,
Today 25th April we had another positive day with our strategy.
We completed another positive day with +80 pips
In terms of capital growth of our real account it means a +1% growth.
IMPORTANT: MONEY & RISK MANAGEMENT
Today we would like to talk about money management from followers perspective. Today we have gotten our 2nd follower. This is a good new, however we can’t be happy. At the first moment he started following with $30 and 0.01 lots, and after during the day he increased to $100… Imagine, if you open 10 positions of 0.01 lots, a movement of -100 pips it is a loss of $100…
As you could imagine $100 is not enough capital to make a responsible money management trading with 0.01 lot size. We use $500 to trade with positions of 0.01, and $1000 to trade positions of variable 0.01-0.02. How a follower can pretend to trade with same lot sizes (0.01 lots) with $30 or $100? Unfortunately this is not possible, and not responsible from follower’s perspective, and not good for us as traders. With this low capital it’s not possible to make a good money management, and it’s dangerous because in case of experiencing a draw down this amount of capital will not permit enough margin to hold positions. This follower could eventually suffer a loss of this capital, however this would be a low draw down in our account with a conservative money management.
So we want to insist in our money management recommendations:
Recommended $500 to trade positions of 0.01 (max open trades 10-12)
Recommended $1000 to trade positions of 0.02 (max open trades 10-12)
We recommend Pro-Rata in stead of “fixed lots” as we work with variable lot size depending on the strategy.
Please take care about your responsibility as an investor, and follow with recommended settings. We’d love to work with investors who wanna find traders for a long-term relationship.
Dear friends and followers,
Today Friday 26th April we have completed our 7th week here in Zulutrade, doing what we love: trading.
Today we did +42 pips
In terms of capital growth it represents a +0.48% growth:
This was a very productive week for us:
Performance in pips: +567 pips
Capital growth: +5.13%
Performance pips: +1379 pips
Capital growth: +14,28%
As you maybe read before, we have achieved 7 weeks trading at Zulutrade. During this time we advised about our first follower 2 weeks ago:
This follower invested capital 3 weeks ago, using Pro-Rata, and trading with recommended lot sizes, which is the best an investor can do.
After 3 weeks this is his performance:
$304 represents a growth of +5% of the capital, in less than one month.
Pro-Rata permits the follower to module the risk in the same way that we do in our real account. As an example if we trade 0.02 the follower trades 0.10. If we trade 0.01 the follower trades 0.05.
Check and analyze our strategy accessing our strategy profile . EU users should wait until we complete 12 weeks.
Instructions about the recommended money management settings.
You are working hard.
But as most savvy traders and investors do, let’s see how your trading history looks after 1 year or 18 months. I know. I was there too. How do you do during a challenge or drawdown? I’m just telling you what everyone told me too. A couple months is great, but wait til the shit hits the fan. That’s why you only have 2 investors. they want to see what you do when you are challenged. welcome to the trader world. congrats so far.
Well said. I am in the middle of the shit right now after 6 months of smooth ride:) I ll go for it and try to get out of this though!
Good job guys indeed. Stay always with a clear head. good luck!
We kindly request to lower the tension here. Having a constructive discussion is positive. However, if this goes out of control, then it’s better focusing on our own trading.
Therefore we will erase all your relative comments (between each other) and we recommend you to concentrate in your own Trader accounts.
Are we ok with this?
Dear friends and followers,
today 08/05/2019 we have done 12 trades, 11 positive and 1 in break even, making a total of +162 pips
In terms of capital this represents a growth of 1.69% in our live account.
One of the main advantages of our trading strategy and money management with low leverage is that we can continue working paralelally while we have trades in negative expecting to go positive. Other traders who trades only one pair (as an example, ThePipsMasterUk, works only EURUSD) when they find themselves losing in this pair they have no option.
In our case we have the option to hedge the position during specific moments, and also have the option to continue working different strategies in multiple pairs. We trade multiple strategies (day trading and swing trading), multiple timeframes, and multiple pairs.
when I 1st saw ur forum and strategy I really liked that. u are showing drawdowns and gains in% mode along with pips. but after following few weeks now I found ur dishonest part. to keep the drawdown low u are depositing funds regularly. which is cheating my dear. in ur 1st post its showing u deposited 604 usd now 1000+ means whenever drawdown going up u deposit funds to keep under control…
Did you change your strategy? Will there be any updates about covering?
ah ha now the truth comes. I have an idea there was more to the story that wasn’t being revealed.