ZuluTrade Signal Provider trades are copied by many traders. You might be knowing this fact that ZuluTrade is considered to be one of the best automated platform for auto trading with forex signals. There are many good forex signals providers registered on the ZuluTrade. There is a detailed performance analysis for each signals provider. These performance statistics include total pips made, average pips per trade, average time per trade, win ratio, maximum drawdown and more. You can visit the ZuluTrade site and take a detailed look at these signal provider pages to get familiar if you haven’t before.
Now, you can choose any signals provider and these signals will be automatically auto traded in your account. You can set your own stop losses and limit profit currency rates for the signal provider that you choose. This is something very important for you to understand. The signals provider is not auto trading your account. Rather you are modifying the signals according to your own risk appetite. What this means is that you are responsible for the risk management of your account. What you need to know when auto trading with a ZuluTrade Signals Provider is the optimal Stop Loss value in terms of the Risk/Reward ratio.
Let’s take an example to make this clear. A signals provider makes 5619 pips in 871 trades when you place the stop loss at 20 pips. Now, if you increase the stop loss to 100 pips, the signals provider makes only 4430 pips. What this means is that the optimal stop loss value for this signals provider is 20 pips. Now, this is not a hypothetical example. The performance statistics that are available for each signal provider in the ZuluTrade have been used in an excel spreadsheet that has been specifically developed to calculate the optimal stop loss value to determine this value.
So, by limiting the signal provider to the optimal stop loss value, you are infact protecting your capital from sudden drawdowns. But you are also setting your account for the max Reward/Risk ratio that in the end determines the profits. The first and foremost rule of trading for any trader is capital preservation meaning you must preserve your capital at all costs. This way you can always return to trade another day. Now, if you are interested in testing a ZuluTrade Signal Provider you can try this Optimal Stop Loss Value Calculator Software for any ZuluTrade Signals Provider.