Copy Forex Trades And Make Money
Posted in: forexYou may have tried getting into forex and never got the hang of it..Or you are too busy to learn how to read charts, watch news releases..understand the market fundamentals. All these might be too complicated for you..A little too much, may be…?
Or you might just be hanging in there..Winning pips consecutively but then having to face that one monster of a trade which goes against you and wipe out your account. One month after you are back again with the determination never to let it happen again, but repeating the same old mistakes again and again.
I have little over 100 mails dropped into my inbox by traders through out the past 2 years. Except for few isolated cases everyone is barely making it. Forex trading is too much work. It will give you many sleepless nights due to 24 hour trading cycle. When you are in sleep, something major can occur in another part of the world and you wake up to see a mess.
What if you can make world’s best traders trade for you. What if whenever they open a trade on their account, the same trade is copied to your account. The only work you do is watching your account grow and send withdrawal requests… whenever you want.
Thanks to Leon Yohai’s ZULU Trade network, NOW IT IS POSSIBLE.
ZuluTrade is a hub of professional Forex traders who provide signals. Most of them trade for a living and you can check their trading history and many vital information before deciding to follow someone.
This is where we have to do little work. It is not as difficult as finding the perfect trade, but do put your research hats on. No system is foolproof. Your success will depend on the people you decide to get signals from. Select wrong providers- say good buy to your account.
Zulu has it’s own ranking system for signal providers. You would think if you add people from top 10 or top 20 your job is done. Far from the truth. You have to analyze each trader to suit your style of trading. They should be able to match your account size.
Not everyone starts forex trading with $10,000 standard accounts. If you start with a $500 and due to your signal providers large draw downs your account may go busted.
Let’s take a look at current number one ranked signal provider, “Forex Cruise Control”. Let’s see what are the data available to do our research on signal providers.
You can see he has a winning percentage of 74%. And a maximum draw down of 1060 pips.
The unit of measurement to express the change in value between two currencies is called a “Pip”. If EUR/USD moves from 1.3150 to 1.3351, that is ONE PIP. A pip is the last decimal place of a quotation.
As you can see “Forex Cruise Control” has a maximum draw down of 1060 pips in his trading history. Draw down happens when a trade goes against you. Draw down of 1060 pips means $1060 negative gain if you trade standard lots. If you trade mini lots it would be $106.
When your account balance is smaller than the drawdown, the trades will be closed and you will have to bear the loss. Even if signal provider sees a recovery in his large account you may not see any recovery as you may not be able to have open trading positions beyond 1060 pips.
That is why it is important to analyze your provider’s performance before adding them. You can add your own stop loss levels to prevent a trade go beyond what you can afford to loss.
You can check the signal provider’s trading history at the performance page. You can monitor every trade they have executed since the beginning.
I am putting my money where my mouth is, and I have enabled all my forex trades visible to all of you. Me and my fiance are operating the signal provider account “littlestar” and following is a screenshot of our recent trading history. You can check the complete trading history here.
The beauty of ZULUTRADE is you can have a one month demo run before investing a cent. This way you can have a demo account to the size you wish to invest and add signal providers of your choice and see how they perform for a month. If you are satisfied, you can go live with the same settings or you can make changes from what you have learned during the demo run.
To open a demo account, Go here,
And select “OPEN Account” from the top menu. The second tab from the left.
Click ” Get a free Demo account”
In the “Balance” field it is better to put the amount you are actually going to invest. Be it $100 or $10,000. It will be easier to get an idea of how much you would have actually made if it is your real live account.
Once the account is opened, log in and go to “performance” page. (3rd tab from the top menu). Go through at least 100 signal providers before deciding to add someone to your portfolio.
If you like a signal provider, click “Add to portfolio” button. From the popup window you can select “lots” and “Max open trades”.
Currencies are traded in lots. A standard lot means 100,000 units of a currency while a mini lot is 10,000 units.
Since those amounts would make trading impossible for the average trader, brokers introduced a concept called leverage. Leverage allows you to control more currency in a trade than you have deposited in your account. This is where the
real power of forex trading lies.
Decide the lot size based on your account size. Smaller the account is, smaller your lot size should be and vice a versa. You shouldn’t be trading standard lots if your account size is $100. 100 pips to the wrong side and your account is gone. Don’t worry, you will learn all about lot sizes and whatnot in a matter of few days.
Max open trades.
As you may have already guessed, it is better to open few trades as possible when your account is small and vice a versa.
Once you add your selected signal providers, you can go to settings page and be familiar with choices available to you. I am not going to explain everything but feel free to explore the page. You can try different settings in your demo account before finding a optimal combination.
Now you can relax. Whenever your selected signal providers open a trade it will be opened in your account too. All these trades can be seen via the “positions” page.
And your equity balance will be increased whenever they make profits and decrease when they are losing. Log in every few hours and see what they are doing. You can monitor all their trades for one month in your demo account. If you still have doubts after the first month, open another demo account for a one more month. Keep doing this until you find your best providers and best settings. This may happen in a matter of days, or it can take months before you find your ideal combination.
To give you a head start, I suggest you to add following signal providers.
“Forex Cruise Control” – Rank No 01 and a consistent performer
“littlestar” – My account and rank in the top 20
“yamatofx2vera” – 99% win ratio with small targeted profits
I will write another post explaining how go live and trade with real money in ZuluTrade. It will be up before 09/03/2012 and I encourage you to demo test at least a month before trading with real money.
Start copying trades here,
