June 27, 2010

Zulutrade and Case Sensitivity

Signal Providers names are case-sensitive. To see how confusing this can be, consider the fact that there are 2 signal providers, one called Bigwin and another called bigwin. Let's take a look at the 2 providers to see how much difference one character can make.


First let's look at bigwin. My first impression is that he has a lot of aliases. This means he has a lot of experience, but also has tried a lot of different things. The other thing I notice is that he previously traded under the provider name auto-fx which I previously blew out of because he would enter positions and just wait for them to come back.

You can see this behavior right away in the performance results. For three month's activity, he has +400 pips closed profits, but he has -600 pips in open positions.

Finally, scroll down (not shown on the left) and he has 98% winning trades. In fact, he has 99 total trades and only one loosing trade, minus -993 pips. A signal provider that does not take losses is a red-flag. This is because since he's not playing with real money, his only objective it to "paint the tape" with winning trades. Sadly, this will draw the unsuspecting Zulu-novice and trash their accounts.

Next, let's take a look at Bigwin. Notice straight-away that he has only one alias. There was a time (prior to Q1 2009) when providers could open accounts under many different names and we had no way to tell who was who. The fact that this provider has only on other account is a good thing.

Next, notice that he has no open losses. This means that he either makes good trades with minimal drawdown, or takes losses when they occur.

Finally, scroll down (not shown) and notice that he has a more reasonable 82.5% win rate. This means that he a high win rate, but not unreasonably high.

Does Bigwin always make money and never loose? Let's take a look and some other time-frames. He has no trades in the past 3 days. But he has shown positive returns in the 7-day, 3-month and 6-month time frames. He has lost money only in the 1-month time frame, and this was on the GBP/USD move up to 1.70 which has since re-traced, but not without doing some damage.

1 comment:

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