Tuesday, 12 August 2014

Become a ZuluTrade Signal Provider

If you want to make some extra money as a trader then becoming a “Signal Provider” on ZuluTrade is very easy. You can send trade signal from a live “real money” broker account or from a demo account. I.e. you don’t actually need to trade with any money yourself and there’s no cost for becoming a Signal Provider. You can either use a live or demo account with ZuluTrade’s own broker (AAAfx) or with any one of their partner brokers.

All your trades are displayed in your ZuluTrade profile once you’ve sent 31 valid trades from a demo account, or straight away with a live account. The people who have chosen to follow you as Signal Provider (“Followers”) will have a of your trades automatically executed in their broker account.

As Signal Provider you can trade in all major currency pairs as well as gold, silver and main indices. However because gold, silver and indices are not supported by all brokers, hardly any ZuluTrade Signal providers trade these instruments. Each trader also has to create their own profile with a picture and strategy description, both of which are reviewed by ZuluTrade before they put this information live. You can also keep your followers updated with regular messages from your profile page.

You get paid 0.5 pips per lot traded by someone following you with a “real money” live ZuluTrade account. The value of 0.5 pip obviously varies due to currency fluctuations and the currency pairs traded. The weighted average is reported by ZuluTrade is around 4 dollars per trade per standard lot. Needless to say that when you get 100+ followers this can add up to quite a lot of commission. Please note that you will only receive commissions for months you are profitable. You’ll lose all your commissions for any losing months (which includes unrealised PnL).

You can get paid once your ZuluTrade account reaches $100. The fees are $20 for PayPal, $30 for US Wire Transfers and $45 none US Wire Transfers. Payments take about 30-45 days to reach your account.
If you like, you can also send signals from an MT4 terminal. This is a trading platform which you can install on your pc and which allows you to create and run Expert Advisors (EAs). These are automated programs which can open and close trades based on pre-set rules and the real time price feeds. I.e. when you become a Signal Provider on ZuluTrade you can run automated trading systems and strategies. Please note though that using trailing stops is not supported.

And since February 2014, ZuluTrade also introduced their own trading station and scripts:

  • ZuluTrade+ Trading Station -  is highly technical trading station user interface with technical charts (Candlesticks, OHLC, Lines, etc), a large variety of Indicators (Trend, Oscillators, Volumes, Bill Williams, Volatility, etc), custom lines/text/objects and much more.
  • ZuluScripts - allow you to create, compile and deploy your own experts (robots)and run them directly in your ZuluTrade Trader account.

ZuluTrade does also impose some restrictions though when you trade with trade as a Signal Provider with a demo account:

  • Trades/Signals to create market or pending orders should have a minimum time interval of 15 seconds between. I.e. you cannot open 2 or more trades at the same time.
  • Within a 24-hour interval, there is an upper limit of 30 market and 30 pending orders you can send, as well as a limit of 1000 update signals (e.g. changing stop levels).
  • Your maximum overall number allowed of open as Signal Provider – market and pending – is limited to 30 orders.
When you trade and send signals to ZuluTrade from a live trading account (meaning you trade with real money) these limits do not apply.

To protect your followers, each Signal Provider is also required to comply with a minimum set of ZuluTrade guidelines aimed at reducing risk. These include limiting your overall drawdown and not allowing losses of 700 pips or more on a single position. The use of stop loss values at reasonable levels is mandatory and ZuluTrade also doesn’t like winning trades ratio close to 100% as these normally mean large potential drawdowns and hence high risk.

Some Tips for when you become and are a ZuluTrade Signal Provider:

  • Use a photo of yourself as profile picture – this creates trust.
  • When describing your strategy, be clear and complete. It’s also useful to suggest how many lots a follower should invest per $1000 balance, how many open trades they should allow and which stop levels they should set.
  • Trade with a real money account (if possible) or at least follow yourself from a live ZuluTrade account. This information is displayed in your ZuluTrade profile and creates trust. You will gain many more followers and respect because you trade with your own money.
  • Because of the inevitable slippage between your trade execution prices and those of your ZuluTrade followers, scalping strategies are not recommended.
  • Trading during the news can also create massively different results between yours and your follower’s accounts because some broker widen the spread significantly during news events.
  • Communicate regularly with your followers and let them know when you change your strategy. Answer follower questions in your feed if they’re relevant. However, don’t get bogged down in replying to negative follower comments after you post some negative trades. There are always people who expect you to win 100% of your trades.
  • Open a ZuluTrade demo account yourself first so you can follow some other popular traders and look at their strategies and communications.

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