Potential ROI On Zulutrade

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I’ve noticed searches on the internet for ‘ROI On Zulutrade’, so I thought I’d share my experiences of using the platform. Obviously, the key word is ‘potential’, but, to date, ‘actual’ ROI has been very positive.

The image below shows my profit balance just before the end of a one month demo account. The actual amount of equity that I’ve allocated to traders has been just over $1,800, and from that I’ve ‘closed up’ 581 euros in profit. Not bad going even if I say so myself. It is a bit annoying that the account is expiring, but I’ll simply open another one, and continue to record the ROI. (By the way, I stupidly forgot to download all the trading history to an Excel spreadsheet, and now the account has expired, the history is gone. Always remember to download the history, as it it a mine of very useful data. Never mind, next time…)

One Month ZuluTrade Account

ZuluTrade Demo Account ROI

So how does this help with the question of ‘ROI On Zulutrade’? Firstly, it has to be said that one month is nowhere near long enough to make assertions about a Forex copy-trading platform’s potential (but I will continue, as noted). Having said that, the profit as a percentage of the equity used is massive. I’m currently running a demo on eToro, and after more than 3 months, is 348 dollars in profit using a similar amount of equity (although it must be said that due to eToro’s ‘ratio’ it would appear to be a ‘safer’ platform in terms of minimizing losses). So what’s the difference, how come I’ve made a lot more on Zulutrade, and ultimately what potential ROI can be made with ZuluTrade?

Without wanting to digress into a ZuluTrade vs eToro comparison, it must be noted from a copytrading standpoint, the key difference is in the ability for a ZuluTrade user to choose their own lot sizes (subject to their account limitations against the NMEs of the signal providers). Bearing that in mind:

Calculating Potential ROI On Zulutrade?

This is almost impossible to do. It must be said that the control of lot sizes on ZuluTrade means that you could make a huge amount of money as long as your account is big enough to copy the traders that you have identified if a large account is required (this does not mean that the best forex traders to copy necessarily require a large account to copy, but some may).

If you really want to see what levels of money some people are making then maybe you should just open an demo account and look through some of the trader’s/signal provider’s accounts – Look at the Follower Performance tab, then select ‘Pips‘. Even when a trader is dealing in ‘micro pips’, the amounts of pips that some are gaining is incredible – conversely, click on ‘Pips‘ again, and it will invert the filter and show how many pips some copy traders are losing. (The reason that I am talking in ‘pips as opposed to dollars, is because the two don’t necessarily equate, but if you think about the lot sizes you will see what I mean).

But, all this depends on what your expectations are. On a platform like eToro, due to the rigidity of their current different system you can almost make a prediction of annual ROI. Based on my past experience, I’m predicting an annual ROI around the 80 – 90% mark, and from minimal effort as well (and will actually confirm what happens at the end of the year). (Oh boy, have I set myself up for a ‘fall’ here? We’ll see!)

To predict potential ROI on ZuluTrade is an entirely different matter. Basically, due to the freedom of the lot size control, you can make a hell of a lot of money (or lose it if you are lazy and don’t monitor your account regularly / choose signal providers wisely). It is unfeasible as well to state that if you have ‘x’ dollars in your account, then your potential return could be ‘x’ percent. The reason for this is that to copy different traders there are different minimum equity requirements (NME). The other thing is that for some trade copiers / signal providers may be out of their reach in terms of NME levels. Having said that, some of the best signal providers on ZuluTrade have low NME requirements, so you don’t have to have a huge pile of cash to follow them.

The other thing is that the potential for one copier will be different to another due to account size, and individual psychology (an under-discussed element of Forex and commodities trading). So, the only real answer to the question will be different for everyone, so the only way to answer it is to try it out yourself by registering for a demo account.

In my opinion, after you have decided to register, no matter how much potential ROI you can secure, it’s a pointless exercise unless you take serious account of three things; risk appetite (how much you are prepared to risk on Forex trading), homework (how much research you are prepared to do on signal providers), and money management / available funds (how much cash you are able to invest, and how rigidly you stick to any rules that you set for yourself).

Obviously, the more money that you have in your account the better position you are in, and if you have a big account, you can go for the ‘big fish’ with the high pip scores, although you will need to be careful. However, even a copier with a small account can make considerable ROI, but again, as long as they are careful. In short, the only way that you will find out what you can achieve is by opening a demo account, or if you are a bit brave, open a live account.

2 thoughts on “Potential ROI On Zulutrade”

  1. So its seems like you can make a lot more money on zulutrade compared to etoro , with greater risk of course. I think its better for an ivestor to choose how much he wants to play rather than beeing dependant on algorithms for reduced risk.

    1. I agree entirely, it is much better have the choice, although for some copiers, especially those new to copytrading it might be better to have a ‘safety net’ while they get used to the trading environment. But having said that, they can open a lot of demo accounts on ZuluTrade before they decide to trade with real cash. I think the problem with all the platforms is they tend to advertise as a ‘license to print money’ (which it can be) and some people may fall for that – unfortunately as Barnum said, “There’s one born every minute…”, and if they weren’t losing their money on Forex, they’d probably being losing it somewhere else… I do my best on this blog to warn people. But you are absolutely right, and eToro have hinted at changes to their OpenBook, and the new (soon to be launched) copy.me, so I’m sitting here waiting to see what they are, and hoping that they are to do with lot size control.

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