Zulutrade Traps and Warnings

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I have been trading live on ZuluTrade for 30 days now. The biggest scary thing is the open trades and their draw-downs. However, analyzing this it appears this is expected. I follow 5 traders. All have trades both in negative and positive positions. If the open trades negative positions is less than the closed trades – you will show a negative balance. The big challenge here is to be patient. And expect a constant draw-down.

Here’s the thing: when you start the trading, you will, within the first day or hours have dozens of open trades. They will most likely be in the red. And stay there a while for the trades to mature into profits. This shows as negative profit picture. But then.. trades will start to close, and you will see profits on a daily basis. So far so good. Then there will be new trades and the cycle starts.

So knowing this, you want to make sure your account can handle the expected draw-down for the traders you follow. This will need some research on the platform. But you should at the bare minimum expect at least a 115-20 draw-down initially. Then the profitable trades will start to outperform the losers and your account balance will grow. My balance has grown by a few percent, but the P&L shows negative.

This process will be on-going but if you have picked the right traders – and the right lot sizes the account will grow past the draw-down and you will be in a NET profit stage.