Tips To Help You Chose A Signal Provider On ZuluTrade or FXTraderLink
Choosing which signals to use is critical to your success with ZuluTrade. When you first look at all of the providers available to trade your account, it can be overwhelming. I've found that using a simple checklist of things to look for can make your job quite a bit easier. Ill share some of the things I look for here.
Choose A Winner - This may seem obvious to everyone but it goes a bit more in depth than first glance may imply. Not only will you look at profit in both pips and actual dollars, but you should also take a look at pips per trade and how many trades that system generates per week. If one system generates 10 pips per trade but only makes 3 trades a week you average 30 pips per week. You may have another system that generates only 6 pips per trade but generates 25 trades per week. With this system you make 150 pips per week. All things to consider.
Choose A Trader That Is Established - I often see traders with only a week or 2 of history and they have 20 or 30 people trading their signals. Generally less than a month later these traders are deep in the red and their 20 or 30 investors have moved on to the next signal. Remember that anyone can go on a run for a week or two. Make sure that you have someone who has proven themselves for at least a couple of months trading your account.
Check The Max Draw Down - A really big draw down often equates to a trader that cannot cut his losses. Since he isn't trading with real money he can leave a trade open until it turns a profit. That will often lead to a good trading record on paper but in actuality it will make you(the investor) go broke.
Look At The Actual Trades - Once you narrow it down to a few traders its time to look at their actual trading history. Some traders have a great track record and have made a lot of money in a short amount of time. The first thing I look for is if they are opening the same trade over and over. ie. Some traders will go buy 1 lot of EUR/USD 25 seperate times at once. This means that if the trade goes in their favor, all of a sudden they have 25 winning trades in a row. It causes their results to be skewed and makes them look a lot better than they are at first glance. If you are trading a signal provider like this you will often find yourself getting margin calls as well as he continues to open trade after trade and never closes the previous ones.
Make Your Own Decision - Just because a signal provider has hundreds of people trading his or her signal does not make them a great choice for you. Do your own homework and decide which system is best for you.
These are just a few things that I look for when analyzing a signal provider. Of course you also need to practice good money management and not overtrade your account to be succesful. Good luck and happy trading.
For a much more detailed look at choosing a provider look to our users guide.
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