Hi all and a Happy New Year. So I was wrong about my assumption that my siganl providers will enjoy some free time. They were busy on 31.12.08 and even 01.01.09. Having maximium trades set to 2 I missed over twenty trades! I caught four trades, 2 closed with a couple of pips and 2 are still open causing a drawdown (DD)
Here the weekly preformance email from zulutrade
Dear xxx,
Your Zulutrade™ account xxx is 58 pips UP this week (12/26/2008 - 1/2/2009). Congratulations!Profit in USD: $50.31 (includes open positions)
Your Zulutrade™ account xxx is 58 pips UP this week (12/26/2008 - 1/2/2009). Congratulations!Profit in USD: $50.31 (includes open positions)
Might be worth to mention that the weekly email states the total pips and profit of the account from the start, not the change during the past week. My account is actually down 102.9 pips this week. (+23 pips from 2 closed trades and -125.9 pips from 2 open trades).
Posts
Hello! Great blog.
ReplyDeleteThis is a normal, typically Zulutrade providers opens many trades successively, trying to catch the top of a retracement. Since they cannot predict the exact moment of reversal (the true top), they open one more lot every x pips... Leading to a relatively large temporary floating loss. This is why you must limit the maximal number of concurrent positions. Eventually, if they are right, the get the reversal and all those positions are closed in positive ground. The last opened position making the largest profit (with a very small low recorded) and your 1-2 positions (the first opened) making small profit and having heavy lows recorded. There is nothing to really do about it, its life. The only way to make all those pips is to trade a fairly large account allowing you to open 5-10-20 concurrent positions. See the differences on graph on allforextraders.com between 90 days profit using 2 vs unlimited number of positions. Happy pips ! ;)
Thanks Scott for your compliment and explanation.
ReplyDeleteI do understand the logic behind, and am waiting for the account to grow to be able to catch more trades per provider. Better play it safe!
zulutrader :
ReplyDeleteHow you doing ? did you finally get the refund for the not closed positions?
How you doing this week ?
Thanks Jorge for your interest.
ReplyDeleteAm doing fine, though I have not yet been refunded. Per email zulutrade told me they are still investigating.
With maximum of one trade at a time I am doing well and have almost reached $920, up from $710 after the loosing trade, still $80 till we are back to square one, the original $1000 deposit.