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Zulutrade and How to Choose a Provider |
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ZuluTrade provides a platform for free automatic execution of third-party signal and system providers directly into client accounts, 24 hours a day. They have literally thousands of trading system providers to choose from.You can choose fromone of these or choose several different providers, each using entirely different trading strategies. Providers trading styles vary greatly in the level of aggression, leverage and currency pairs traded. You need to find a provider or range of providers who suit the size of your account balance and your appetite for risk. I can't answer the question of what your risk appetite is only you can.
I work off 2% risk per trade, which on 20k works out to around 3 mini lots, though your risk is increased also by the number of trades. Many providers trade the Yen crosses which have a very large daily range and are very volatile, the GBP/JPY is the most volatile of these. Too much exposure to these pairs can put your account in danger. They can easily move 300-400 pips in a day and with multiple trades open at once you can easily get a margin call in a short space of time. It is all too easy to over leverage your account and end up with a margin call. Use the Zulutrade demo trading time to see which providers suit you best.
Choose a Zulutrade provider who you feel suits your risk profile. If you are conservative like me you go for a provider that uses stop losses, only has 2-3 trades open at once and doesn't keep trades open for weeks at a time. Under the providers profile you will see how many trades they currently have open, and any floating loss they currently might have. Too bigger loss and too many trades = high risk.
Also looking at the providers profile, look at max % drawdown. Greater than 20% = high risk. Also look at win / loss ratio. Less than 50% = higher degree of risk. Also a very high winning ratio say greater than 85% means they are probably holding onto trades for extended periods of time, also a high risk factor. Zulutrade offers: - ZuluTrade is FREE for clients!*
- You can start with a minimum opening balance of just $25, though we suggest 100 to allow for drawdown (micro accounts)
- Fully automatic execution of your selected systems through the Zulutrade server. No need to leave your computer running 24 hours a day.
- Reverse the worst providers' signals
- Free 30 day Zulutrade demo to choose your favorite providers
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Autotrading Forex with Zulutrade
