Opening a demo account on zulutrade

To be able to further test zulutrade I opened a demo account. Opening a demo account is very easy. They have a sign up page and after filling in some personal information I was ready to go. When you open a demo account it is always important to use the settings that you would use if you would open a live account. I my case if and I say if I would open a live account I would open a real small account because you never know. If you have a small account it is important to limit the risk so you don't get a margin call to easy. So I used a 1/50 leverage.

After you have signed up for a demo account you can start choosing some signal providers (SP). If you click on the performance tab on their website you can see all the signal providers you can chose. Like we said in the previous post a “signal provider” is a trader that shares his signal with other zulu members. Of course share isn't exactly the right word because a signal provider receives a fee for every trade somebody makes following his signals.

 Zulutrade has made is real easy for you with their zulu ranking they give each signal provider. The signal providers with the highest zulu ranking are shown on top. When you click on a signal provider you can see all the details about his trading. It is extremely important to analyze a provider in detail before considering using his signals. Don't look at the winning trades only. Especially check the losing trades and the draw down that can occur when you would decide following his signals.

When I start looking at the different signal providers I noticed the following things:

• They don't all trade following the trend? 
• Most of them have a bad risk/reward ratio, meaning they have a smaller “Take Profit” then their “Stop Loss”? 
• Some of them seem to be adding trades to a losing position and are averaging out afterward? 
• Some of them use martingale positioning sizing? 
• I see scalpers taking a few pips profit with SL above 100 pips ??? 
• I see signal providers with 100% winning ratio.....but..... you know how? If they have a losing position they wait and hope their position gets out of loss again?? Even when the position is 250 pips or more in loss. Crazy of course. 

Of course they are signal providers that are not trading like that. We will see and try to find the better ones......