Showing posts with label critera. Show all posts
Showing posts with label critera. Show all posts

June 27, 2010

Provider selection criteria for Zulutrade

Here are critera for selecting signal providers. I'm a relatively conservative investor and I want to grow the account, as safely as possible with capital preservation a high priority:

1) No large, open drawdowns.
I avoid providers that hang onto large, loosing positions for weeks or months. Ideally the provider should have no open trades, since I usually do my analysis on the weekends.

2) Consistent effort
I need to see at least one trade every 2 weeks or I assume the provider is disengaged.

3) 85% or better winning percentage

4) No "Painting the Tape".
Whenever I see an entire screen worth of the same trade, I assume the provider it taking multiple open positions. I'm limiting my trading to 2 open lots per provider at one time, so this is a negative.

5) No large drawdowns in History
Whenever I see multiple trades going more than -200 pips, in the account, that's bad. My stops are set to about 150 and those trades would all be loosers for me. Plus, I can't understand the fact that a trade would go that far against the provider without them closing it. I can't take those type of drawdowns.

6) Must have at least 3 weeks history.

7) Must have live, subscribed users.

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