Presentation of ZuluTrade's Traders' Combos

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ZuluTrade's Traders' Combos feature is a simple and effective way to diversify an investment portfolio. This tool combines the monitored performances of individual traders in order to ensure maximum profitability.

The whole process uses a sort of artificial intelligence system to identify and combine profitable strategies. Investors can then choose to copy these strategies according to various levels of risk.

We know that the biggest problem individual traders face involves risk management. "Money management" is a priority for social trading platforms such as Zulutrade and the Traders' Combos feature offers a good compromise.

Mirror trading or copy trading also requires you to be able to analyse different strategies to build an effective portfolio. Traders' Combos automate the steps for selecting strategies.

 

A new way to diversify your portfolio

Traders within the Zulutrade community are not all included in the combos. They must have a trading strategy with a profit percentage ratio that is over 30%, a positive long-term return on investment and over 50 transactions executed. Lastly, the trader must be followed by investors with real money (not demo accounts) and demonstrate regular trading activity for at least 15 weeks. This system allows Zulutrade to differentiate high-potential traders from occasional winners.

Zulutrade's analysis concluded that the Traders' Combos' performance is much better than a portfolio of traders manually configured by investors.

However, even though Traders' Combos combine profitable trading strategies that can increase the performance of a portfolio, the fact remains that investors still have to make a selection.

The main benefit of this system is that an investor can synchronise his portfolio combinations according to his risk appetite.

 

How Traders' Combos works

Combos are automatically generated by an algorithm that identifies combinations of profitable trading strategies that are then constantly monitored. If a strategy no longer meets the criteria, it is instantly downgraded, and conversely, if other trading strategies meet the above-mentioned rules, they are then listed in the Combos.

Strategies that fail are removed, so you will almost never see them in a combo. You may therefore get the impression that combos always consist of unbeatable traders. But that's not true, even strategies that are eligible to be in a Combo can lose money. That's why risk management is always important. So you have to configure your portfolio so that the possible failure of a trader does not cause a total loss within your portfolio.

The evaluation process to filter the best strategies is also very important. Zulutrade allows you to see the profits generated on investors' accounts, the ratio between open and closed transactions, the drawdown, the life of an account, the maximum number of open transactions, the average number of pips earned, the stability of the strategy, etc., all of these parameters are part of the conditions required to be eligible within a Combo.

 

Configuration of ZuluTrade's Traders' Combos

ZuluTrade Traders' Combos

First of all, investors must allocate the funds they want to invest with the Traders' Combos option. By inserting the amount in the designated space, they automatically see the percentage of funds that are invested, so they can spread their funds over several combos if they wish.

Second of all, investors define their risk. From low to moderate to aggressive, there is an option for all risk profiles.

Lastly, the third step involves choosing combinations of traders matching the criteria. The platform automatically lists combinations, listing the simulated annual ROI (annualised and non-real ROI) and trading conditions such as the balance and the size of a lot per transaction to achieve this performance.

The funds to be invested are then automatically allocated over the chosen strategies.

 

How does one define the risk of a Traders' Combo

How much risk do you want to take for your investment?

Depending on your preferences, the system displays combinations based on the NME (Necessary Minimum Equity) of the traders included in the combinations, as well as the probability that the amount to be invested is sufficient for future performance.

The NME refers to the minimum capital needed to open all of the transactions of a strategy over a given period of time.

It basically means:

Longer NME timeframe -> Less appetite for risk

The timeframes are as follows:

  • 3 months (Highly aggressive)
  • 6 months (Aggressive)
  • Annual (Moderate)
  • Global (Conservative)

Naturally, the most conservative option is the latter one. Using this approach, the appetite for risk becomes conservative because the transaction history is long enough to have survived through various market conditions. On the other hand, the 3-month timespan is more risky because the strategy has not yet stood the test of time and performance can be simply random.

 

Conclusion

Traders' Combos complete the ZuluTrade platform's offer to investors by providing them with an excellent way to diversify their portfolio and choose strategies based on their appetite for risk.

It's a simple and effective (but not foolproof) way to select top trader profiles and manage risks.

 

CFD trading is speculative and involves a significant risk of loss, so it is not suitable for all investors (74% to 89% of retail investor accounts lose money when trading CFDs).

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