We have noticed a lot of investors struggling to make profits when following traders on ZuluTrade platform so we have decided to give them a helping hand
Here are a few tips from us:
- A good trader always trades his own real money.He knows he is profitable and is not afraid to trade real money.Avoid to follow traders that use DEMO accounts.Most of the time,they are not reliable, and if they don’t trade their own money they most of the time don’t care about profits, and they will use all kind of harfmull techinuques for the investors in order to get more pips or recover after a big drawdown.
On the other side, LIVE traders care about how to grow their equity/ballance.THis means, that if they can make money, you can , by following with proper money management
Always look for LIVE TRADERS when you search for traders to follow.Also make sure they trade more than just “play money” with 0.01 lots per trade.
- After you have identified the LIVE traders, you also need to check if they are profitable on long term in ballance wise, not just in pips.Go to his statistics page and switch from pips to USD/EUR to see how ballance profit.Make sure to check multiple timeframes like 1/month,3months,6months,12 months and overall
bigger time frames like 3-6-12 months are more important than smaller timeframes like 1 day,7 days etc.
This trader is trading real money and also has a substantial profit by trading.
3.Make sure his drawdown is acceptable for your taste.A max drawdown should not be bigger than what the trader can make in 1-2 months of trading.So, if for example he makes 2.000-3000 pips per month, his all time max drawdown should never exceed 2000-3000 pips.
Also, adjust Money Management accordignly, so in case of a max drawdown your ballance will not get hurt too much.
4.Look at max open orders.
Usually, demo traders tend to just shoot for pips profit, so they use all kind of harmfull techniques for real investors/followers, like opening tens and hundreds of orders at the same time, trying to recover fast after a drawdown.THis is not a good/profitable technique as it can lead to margin call, big drawdowns etc.
Again, try looking for LIVE traders, that use an average of maximum 1-15 orders, and max open orders ever must never exceed 20-30.Anything above that is crazy, in our opinion.
5.Look at his live followers overall profits
You need to make sure his live followers are profitable, this is a good indicative he is a good trader that is not using harmfull trading techniques for followers/investors.
This trader made his investors a profit of 28.000 $ in
This trader lost his investors more than 300.000$ , an indicative that is not safe to follow
6.Always read strategy description carefully and see if it suits you or not.Use the recommended settings by the trader or even tighter.It is very important to have a good money management.
7.Follow long term !
If you finally spotted a good trader, make sure you can follow long term, for at least 3 or 6 months !
Adjust your settings accordingly, so when a drawdown happens it will not hurt your account.
Drawdowns are inevitable and will happen to even most profitable traders in the world.You have to be aware of this and also prepared for it.
When the drawdown happens, your account should not be hurt too much and you have to keep following until he recovers, slowly.
Don’t get scared after each time there are a few losing trades or bad days, trading is about long term and you should look at the bigger time-frames, like 3 months -6 months, yearly etc.
We hope that this article will help you in making better decisions when following traders and will help you achieve profitable trading!
We wish you all the best !