You can either watch the video or read transcribed text article both below. That kind of forex trading strategy might work for couple of weeks or even for couple of months but in long term trading I am afraid there is no such a thing.
You can read the whole article on our blog ForexSocialTraders. But just in short I would like to remind you, I was writing in that article about Stop Loss issues, Maximum Drawdown issues, and Lot size issues. Because at the time of writing that article, there were no signs or any information in this trader strategy description about maximum stop loss, which this forex signal provider could have been using.
That was already first important warning sign. Never mind, lets have a look at this Zulutrade Forex signal provider recent performance in more details. As you can see there are few big drawdowns, recently.
As we can see after publishing that article, he took few more winning forex trades, but at certain point suddenly he started to experience a number of huge draw-downs. Gradually, draw-downs on those opened trades started to become bigger and bigger, resulting in big losses of around pips per each trade. As we can see on the image enclosed below, this Zulutrade forex trader is experiencing big draw-downs again.
Of course he might still be able to close those opened trades with profit in the future, if he wait certain time for trend to reverse in his favour, who knows? But, equally well the trend might continue moving against him, resulting in possibility of wiping out all his trading capital.
Another thing is that this Zulutrade signal provider stop losses are never set up. Then, he waited for market to reverse and finally took some small profit of 7. Basically that type of winning strategy works on non volatile markets, without strong trends and big price movements in one direction. But once a big strong trend appears, and this new trend is against your currently opened positions, then you are in really big trouble, and many of your followers are in big trouble too, as a result.
Another comment from angry Zulutrade follower: One more negative comment: Many of his followers had seen that he was trading his own money not paper trading with virtual money , because of that those Zulutrade followers could have thought, that this trader would trade responsibly and reliably. But as we could have witnessed recently, there can big big drawdowns, despite of that fact. Such a high percentage forex winning trading strategies usually involve high risk, and sooner or later results in significant losses.
Remember, past performance is no guarantee of future profits. If you follow any signal provider or copy trader on any social trading network with real money you do so at your own risk. Invest only money you can afford to lose. Feel free to post comments. My Zulutrade Portfolio week 5 update.More...