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Zulutrade Adds New Features, Some Old Problems Addressed

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By coincidence, the very next day after I mentioned in my blog post that Zulutrade has gone for about half a year without any changes to their service offer, Zulutrade introduced some new features.

  • Customization parameters to demo accounts: base currency, leverage and initial balance.
  • Provider notifications (new max loss per trade, substantial change of average trade time, stopped trading live account).
  • Provider alerts (high slippage and reckless trading warning).

The changes are rather evolutionary than revolutionary, but still highly useful. Zulutrade has a dismal record in the field of performance representation (as noted in a blog post here). So far it had pips and notional USD value as the reference points for performance evaluation – obviously insufficient parameters. Adding initial balance, base currency and leverage makes a lot of sense and is a big step forward for Zulutrade. As a side-note, extending free trial beyond 30-day period would be a smart move to keep potential customers interested and get more business. Empirically, 30 days is too short period to gain confidence in the service, but confidence is needed to commit substantial capital rather than some small amount for live test run.

Provider notifications and alerts are rather secondary importance for performance evaluation and obviously geared to retail customers. New max loss per trade is useful, but new max drawdown would be more useful. High slippage alert is a highly valuable tool. We have noted brutal slippage in a live account test October, 2009. My compliments to Zulutrade for addressing the issue of slippage with the new alert tool.

Reckless trading warning is something of marginal value as the trigger points are at least 1000 pip profit and 100% drawdown. None who´s in it for investment purposes would wait for 100% drawdown to pull the system from the trading mix. 20 or 30% are more likely trigger-points for removing the system from trading in live account.

The latest features give me some confidence that the far-from-perfect Zulutrade performance reporting is not intentional at least. If they want to make the business grow they should cater to needs of bigger investors rather than quick punters who go the markets for the thrill of it rather than consistent profit. The new features is a considerable step of moving from competition with the online casino sites toward bankable online investment proposition.

 

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Written by A.S.

January 5, 2011 at 1:56 pm

Posted in Uncategorized

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