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In the previous two articles of this series we described the theoretical concept of drawdown.

We have described in its classical and most recognized form in the world, in the Article 1.

We then explained in details how Zulutrade intends it instead, in the Article 2.

But now it’s time to unveil what is the risk if an investor of Zulutrade is not aware of this difference.

Yes because, the only real risks for the investor always and only arise by the lack of knowledge of certain aspects of the world of finance and markets.

That’s why many investors choose to entrust their money, under total management, to other people, who present themselves as “experts” in the field.

I’m not going to tell you how many of these supposed experts have rather then “burned”, or even worse made disappear, the money of their investors. You know better than me because you hear every day.

YOU NOW have the opportunity to be the co-manager of your own investment on Zulutrade, you can know every time how, where and when your money moves, and most of all you can directly choose who will be the manager.

Zulutrade Drawdown Part 3 – The importance

The important thing is to be aware of the tool you are using.

Knowing how to work in the right way with Drawdown on Zulutrade is the key to success, it’s the turning point that many investors expect, the factor who could not be explained before it was explained.

In this article you can find it out. And you will make the difference, compared to all those followers, those investors, who have set their investment based on the Drawdown of Zulutrade, without really knowing what they were doing.

Zulutrade Drawdown Part 3 – The ultimate benefit

In the next article you’ll discover what is the error of assessment that many unprepared investors make, and that instead you will avoid from the very beginning with Zulutrade, giving yourself a huge advantage from the first move.

You just have to sign up to our Elite Area.

It ‘easy, and above all it’s completely FREE.

You just need to open a demo account on Zulutrade through our link. It’s demo, you don’t need any money to open the account, and we will neither ask you for any money to let you enter the Elite Area.

So what are you waiting for, click here for the registration procedure to the Elite the Area of Money Building.

Filippo

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In the previous article I showed you what is meant by Drawdown in the classical technical analysis. If you don’t know then what the Drawdown is, you should go to read that one first.

Here instead I will show you what Zulutrade means for Drawdown, what are the major differences from the classical theory, and what are the risks that may occur if you are not aware of the difference.

Given that the analysis and the advance knowledge of the risks is one, if not the most important factor to be analyzed, it is clear that Drawdown become an important player.

Knowing what has been the worst moment of a Signal Provider on Zulutrade, how much it has been deep, and to how many pips it corresponded, his worst series of losses before returning to profit, are certainly some of the most important things of Social Trading.

With this value we can already get an idea of what we can risk if that Zulutrade Signal Provider should replicate his worst moment. There would be nothing strange if it did it, losses in trading are normal, you cannot always win.

It is therefore essential to have clear what Drawdown means, and be aware if instead is meant something different, because on this value I have to build all my calculations about risks, which is the most important thing for the success of my investment.

So, let’s understand what we mean for Drawdown when we see this value in the analysis form of a Zulutrade Signal Provider.

Zulutrade Drawdown Part 2 – The calculation of Zulutrade

The Drawdown of Zulutrade is the total amount of the losses caused by the only open and losing positions, in a precise moment.

This is the definition, and to make it more understandable let’s take a simple example, or better 3.

- If a Signal Provider, at any given time, has 4 open positions, 3 in profit, one at a loss of 10 pips, Zulutrade will tell you that his Drawdown is -10 pips at that time.

- If a Signal Provider, at any given time, has 6 open positions, 3 in profit, 3 at a loss of respectively 10, 15 and 30 pips, Zulutrade will tell you that his Drawdown at that time is of 55 pips, the sum of only the 3 losing trades at that time (10 +15 +30 = 55)

- If a Signal Provider, at any given time, has 4 operations, all 4 winning, Zulutrade will tell you that at that time his Drawdown is of 0 (zero) pips.

With these 3 examples we now have clear what Zulutrade intends for Drawdown, and especially how they calculate it. The measurements are made only with the simultaneously and losing open positions, and these measurements are made moment by moment.

Then the MAX Drawdown of Zulutrade is simply the instant in which the Signal Provider has been losing the greatest number of pips from its open and losing positions.

The MAX Drawdown of Zulutrade is then calculated as a percentage, as we have seen in the previous article, but of course considering this type of drawdown. It just takes to consider the maximum drawdown of Zulutrade in pips, and then compare it as a percentage of the total number of pips earned, up to that point.

For example,

Max Drawdown of Zulutrade in pips = 300 pips

Pips total earned until that time = 2500 pips

300 / 2500 = 0.12

0.12 x 100 = 12%

Zulutrade Drawdown Part 2 – What this difference can cause

Now we have clarified what Zulutrade means by Drawdown, and how this value is obtained, both in pips and percentage.

It’s definitely an important value and indication for our analysis. It’s very useful to know what we can expect when a Zulutrade Signal Provider keeps open some transactions at a loss.

With this data we can know immediately if the Signal Provider has a tendency to let the operations running in loss too much, and if we combine it with an analysis of other parameters, such as the Max Open Trade, the number of cross used, and of the Martingale or Pyramidal style, then we can discover a lot of useful things.

These are all topics that we’ve covered in depth in our video course for professional investors “The Follower’s Journey“.
But, back to the Drawdown pure and simple, we lack one thing to be clarified.

What can be the risk of seeing the Drawdown shown in this way, different from the classical one, without being aware of it?

You’ll find out early next article, the last in this series.

Continue reading …

Filipp

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Hi.

In this article I want to talk about Drawdown, in the specific, obviously, of the Drawdown of the Zulutrade Signal Provider.

If you already know what is meant by Drawdown within trading and classic Technical analysis, I tell you that the Drawdown in Zulutrade is not exactly the same thing.

If instead you don’t know what it’s about, with this article you can kill two birds with one stone. In addition, I will show you what is the main problem that arises from the difference between the classical Drawdown and the Zulutrade  one.

Let’s start from the pic 1. This is a classic example of traditional Drawdown.

The chart shown is an Equity Line, which is nothing more than a graphical representation of the account balance, and this could very well be one of a Zulutrade Signal Provider.

The point A is the starting point, the day 1 in which the account of the Zulutrade Signal Provider has not gained nothing yet. Let’s suppose then that on this account are performed some financial transactions that in the month to follow begin to gain profit, and then get closed scoring a profit, let’s say 1000 points, or pips.

The point B represents the new amount of the account of the Zulutrade Signal Provider, spent the month, from that first day 1.

Let’s suppose then again that on this account are opened other financial operations, but this time, instead of gaining, these operations start to lose. After another month the Zulutrade Signal Provider closes them scoring a loss, let’s say of 400 points, or pips.

The point C represents the new balance of 600 points, or pips, once the account on Zulutrade has cashed the losses.

The operations continue, and in the month ahead are generated new profits, and these profits are such that they retrieve all the losses of the previous month, and generates new total gain, such that the account, passed another month, is in profit of 1600 points, or pips.

As before, the point D represents the new balance generated by the Zulutrade Signal Provider, spent the last month.

Zulutrade Drawdown Part 1 – The conditions for the classic one

From the current situation we can draw our own considerations.

The point E is the point in which the account, on Zulutrade, is returned to the maximum level ever reached, the point B, and has also passed it, going to form a new maximum, a new point higher than all the previous, a new high in the balance of the account on Zulutrade, the point D.

Here is the necessary condition for there to be a Drawdown.

A Drawdown (obviously, what is considered as classic Drawdown worldwide) in fact is the extent of the losses of the account before it reaches a new high. In our example, the Drawdown is the measurement between point B and point C, which is the number of pips lost from B to C, before arriving at the point E.

We can say in our case, that the account of the Zulutrade Signal Provider has suffered a drawdown of 400 pips.

Of that Drawdown we can also say that it had a duration of about one month, i.e. a month passed before the accont came back to create a new maximum profit.

We can also express it as a percentage, just by comparing it with the final amount of pips. The account has 1600 and has suffered 400 pips of drawdown. So we calculate:

400 / 1600 = 0.25

0.25 x 100 = 25%

The overall Drawdown of the account, considering its entire historical period, has been of 25%.

Zulutrade Drawdown parte 1 – In the end, why do we need it?

These are some of the classic considerations that are made about Drawdown. They are some of the, if not the most, useful reasoning for fully understanding the potential risks that an investment may entail.

Speaking of Social Trading on Zulutrade, what interests us most, it’s really understanding the Drawdown of the Signal Provider we are interested in.

On Zulutrade in fact, of each Signal Provider we can find, well-specified in the details page, his Maximum Drawdown, indicated both in percentage and in terms of pips.

But, watch out.

Is that Drawdown really that one I just showed you? The real and classic one?

The answer obviously is NO. It’s not the same thing. It still refers to losses, but it’s a different thing.

Read the next article because I’m going to make everything clear.

Filippo

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Hello to you.

You are maybe thinking of investing your money by yourself, and maybe you have discovered that Social Trading with Zulutrade is one of the best solution.

Perhaps you’ve discovered that investing this way with Zulutrade allows you to really make money online and automatically, once you set up everything.

You are then ready to become a “Zulutrader” in all respects, but perhaps you don’t really know what it means.

Zulutrader – Who is this investor?

Let me answer you, here and now. I’m going to tell you what it means to be a Zulutrader and that we can show you how to become a real one!

To be a Zulutrader means having a true desire to step in the real game, being motivated to change your economic and financial situation, improve your finances, but also really wanting to make money.

To be a Zulutrader means having a desire to get rich starting from any budget, since the investment opportunities are fully customizable. Starting from small accounts will only make the journey a little bit longer, but chances are the same for everyone.

To be a Zulutrader means being able to take some risks, of course after having calculated them, to bear them without panic, in other words to have the attributes.

To be a Zulutrader means being able to accept some losses when they occur, because a Zulutrader knows that losses are normal things that occur every now and then, and that are signs of a serious system, because the systems in which you always win are nothing more than pure scams.

To be a Zulutrader means loving challenges and not accepting the phrases of those who say “Make money in the forex markets is impossible” because they have tried it with no conviction, and they gave up at the first difficulty, losing a huge chance. A Zulutrader test things on his own skin make his own opinion before judging.

To be a Zulutrade means being able to think and imagine big, especially when it comes to earnings, because with trading, and with Mirror Trading that is even easier, you can gain very much, really very much.

To be a Zulutrader means not leaving anything to chance, it means being prepared in advance to every situation, knowing all the possible risks but also all the opportunities of making money.

To be a Zulutrader means making a perfect work of planning a strategy, it means preparing and set up a war machine, ready for action, and then leave it working and raising your money.

Zulutrader – Watch free videos to make money with mirror trading!

To be Zulutrader means not being impatient and knowing how to wait for the right time. As for humor, the secret for making money in the forex market is timing.

To be a Zulutrader means to never give up at the first difficulty or first mistakes, because a Zulutrader looks and always aims at the perfection of the investment. The best results are those obtained after a patient work of correction, even during construction, to be able to maximize the profits.

To be a Zulutrader means not being a simple investor, a Zulutrader is an investor special and specialized, that knows in depth the program he’s using, that has at least a basic understanding of the markets on which he operates, that can use, as a professional, all the instruments available.

Zulutrader – Why do they do it?

To be a Zulutrader is all this and many other things.

They may seem a lot, and maybe even also complicated, but the reality is another. The reality is that for all this, to make everything easy and accessible, THERE IS Money Building!

You will only have to make the small effort of trying, then we will guide you, and as a reward for this small effort, you will have the opportunity to earn a lot, and automatically.

Our goal is simple, and I tell you now that for turning you into a real Zulutrader we will not ask you a single penny!

You must be wondering how it is possible, and if there is something strange hidden!

The reason why our service is free is very simple instead. When you will start your activity with Zulutrade, obviously you will need to open an account with them. If you will do it through our affiliate link, we will be paid by Zulutrade with a commission.

You can even do it now in DEMO. In one minute you can have your account on Zulutrade for a trial, and automatically begin to navigate in our Elite Area. Click here, become a Zulutrader!

What will you earn instead?

You will gain the privileged access to our Elite and Privè area, the places where you can find everything you need to become a perfect Zulutrader!

So what? What are you waiting?

Start to gain today as a Zulutrader!

Filippo

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Continue to read…

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