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#1 09-12-2018 18:36:26

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2532

Profile of one of Zulutrade's most profitable traders: ThePipsMasterUK

Profile of one of Zulutrade's most profitable traders: ThePipsMasterUK‏
ThePipsMasterUK is a British trader who has become one of ZuluTrade's most profitable trading signal providers in recent months.

This trader is currently ranked 4th on ZuluTrade (as of 4 December 2018) among the thousands of signal providers that offer their services on the site.

7,404 investors chose to automatically trade using ThePipsMasterUK's signals in their own accounts. This trader currently manages $8,470,105, and in 36 weeks of trading he has earned 3,798 pips.

Trading strategy

ZuluTrade signal providers don't provide all of the details of their trading strategies, as they could easily be copied by other traders, but they tend to give a brief overview of their strategies.

Here is the description provided by the trader:

Night trading strategy on the EURUSD pair. Trading in the early hours to avoid volatility we aim to gain nightly pips. A number of filters are used for entries and several positions may be opened in order to catch the trend.
Risk management: Please note that we open up to a maximum of 8 trades at a time at 0.10 lots per trade (total of 0.80 lots).

We have virtual TP settings in place for each trade.

The Stop Loss is set at a fixed 150 Pips Per Trade. That means that if the maximum trades open and hit stop loss there will be a total loss of 1200 pips in total. Remember, that 0.01 lots = 0.10 ($/€/£) per pip, 0.10 lots = 1.00 ($/€/£) per pip & 1.00 lots = 10.00 ($/€/£) per pip.

The following is provided as guide only to lots & leverage. We are not advising you as balance, lots & leverage has to be you own decision. 

Recommended Minimum Settings for 100:1+ Leverage: Fixed: You will need 200 USD/GBP/EURO to copy all Trader's positions with 1 micro lot each and 100:1+ leverage.
Pro-Rata: You will need 2,000 USD/GBP/EURO to copy all Trader’s positions with 100% ratio and 100:1+ leverage.

Recommended Minimum Settings for 30:1 Leverage: Fixed: You will need 670 USD/GBP/EURO to copy all Trader's positions with 1 micro lot each and 30:1 leverage.

Pro-Rata: You will need 6700 USD/GBP/EURO to copy all Trader’s positions with 100% ratio and 30:1 leverage.

You should always aim to trade with more balance than the minimum balance in case we have a larger draw down.

The above should help you to decide on the risk settings that are appropriate for your balance and risk appetite.

I recommend that you withdraw 25-50% of your profit at the end of each month as this allows you to compound your bank whilst also clearing your initial investment.

Profit targets

The transaction history shows that this strategy seeks small profits on each trade, typically between 6 and 10 pips, with a maximum of 8 open positions at a time.

Therefore, if the trades are successful, you can expect to make a profit of 80 pips per day if you choose a broker with very low slippage.

Slippage is a real problem with this type of strategy that targets only a few pips. ZuluTrade's proprietary broker (AAAFX) usually offers the lowest slippage, but a few other brokers are also performing well.

For example, if we compare trades made on the ThePipsMasterUK account with trades copied to investor accounts, there is a real difference in profits by brokers.

Investor AVA1860233F, (AvaFX broker)

Investor PEP1839270F, (Pepperstone Broker)

Stop Loss / Drawdown

ThePipsMasterUK uses an arbitrary stop-loss of about 150 pips, but this is largely designed to allow trades to reach their target price without being stopped for a small loss each time.

In reality, these stop-losses were never achieved, the maximum loss for a position was 44 pips with a success rate of 98% and a maximum drawdown of 481 pips.

However, the big worry when you use a wide stop-loss and you target small winnings with a high success rate is that it only takes one bad trade to clear several months of profit.

So far, that has not happened, but it will happen one day or another. The latest traders will be the losers.

Final thoughts

Overall, this trader has achieved impressive results for 37 weeks, but I fear that this type of strategy is not viable in the long term.

ThePipsMasterUK has a remarkable success rate of 98%, which is almost unheard of in the forex industry, keeping this type of record over long periods is exceptionally difficult to do, regardless of the quality of your strategy.

Check out the performance results of ZuluTrade's Signal Providers: here

"Anything worth having is worth going for - all the way." - J.R. Ewing



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