ZULUTRADE – the first damn thing is lumpy

Greetings dear visitors. Previously, together with you, we selected a trial portfolio of managers, which you can read about in the article entitled “ ZULUTRADE – FIRST STEPS TO SELECTING REAL MANAGERS .”

Five managers were selected to trade on an account of $10,000, who, at first glance, seemed to me to have good trading statistics.

Almost all five traders are leaders in the Zulu rating, however, during real testing, pitfalls were identified, which I would like to tell you about today.

Initially, the results of two weeks of testing resulted in wonderful impressions, since almost all managers maintained their high top bar. At the time of writing this article about selecting managers, traders successfully brought in $300.

You can see the growth graph in the picture:

Waking up early one morning, I decided to check the account balance, which had been so actively managed by a pool of managers, and guess what? The first problems. The profit curve had changed dramatically, and from excellent growth, it had begun to plummet. After analyzing which manager had screwed up, to put it mildly, it turned out to be a trader under the pseudonym ferifgip. He was fifth on the list of traders whose signals I decided to copy. The trader was a relative newbie, but he had quite positive profit-to-drawdown statistics.

The manager managed to ruin all my results and flush away $180 in profits literally overnight. And then, for the first time, I saw a clear correlation between profits and each manager. It's clear that missing just one unprofitable manager can lead to a complete loss, which is exactly what happened to me. The reaction to this manager's behavior was immediate, so I removed him from my portfolio. However, removing the manager won't return the money, even though it's not real. You can see the result of one trader's mistake in the image below:

Next, I decided to analyze my managers' work in more detail. For example, the most profitable trader, TraderVic, who tops the rankings and has brought me a profit of $165, has managed to lose $250 so far, which is significantly more than his total earnings. After analyzing TraderVic's trades, it became clear that he is a grid trader and actively uses averaging.

As you can imagine, this is a rather risky approach, so once he recovers from the drawdown, I'll immediately remove him from my portfolio. A trader nicknamed Pminvestcap also appears to have a very similar trading system. However, unlike the previous one, his profitability chart shows that he uses a stop order, but for some reason today he managed to use a martingale and simply allowed a drawdown that is twice the profit he generated. Naturally, the drawdown is small, but it suggests he deserves a closer look. You can see the result of copying Pminvestcap's trades in the image below:

During my analysis of managers, trader MWTechTransilvania stood out. During the copying period, the manager generated a profit of $113, while the drawdown on his open positions did not exceed two percent. This suggests that the trader is sticking to his trading strategy, and I've stumbled upon a truly worthy candidate for managing real money. You can see the results of copying MWTechTransilvania's trades in the image below:

The trader under the pseudonym uuicc1 hasn't made a single trade in a month of copying. Therefore, it's too early to talk about his performance. In the next article, I'll work with you to select new candidates for copying and make significant changes to the managers' portfolios. You can try independent investing with the broker Amarkets .

Thank you for your attention, good luck!