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Thread: Fatal Error When using Autotrading

  1. #1

    Default Fatal Error When using Autotrading

    Autotrading like Zulutrade system, MirrorTrader and Pipsbook is an excellent solution for the owners of capital who can not trade or do not have time for trading. Many people who use Zulutrade profitable (and other systems) with various signal providernya. But not a few others that are not profit for a variety of errors. Consider these things and solutions:

    1. Risk is too big

    Generally, because of luck too sure at 3 parties (you, signal providers, and others who follow the signal provider), you determine the amount lotsize optimistic approach. Ie the assumption of where the market is never bad, and SP never passed drawdown that had been passed during the strategy goes. So you use a drawdown that has occurred as a benchmark max loss. As a result, when the drawdown is passed (-meaning there is a greater drawdown). Then there was a disaster.
    For example, the SP has a 1000 pips drawdown. You deposit $ 1000, then using 0.1 lot (max risk means 1000 pips = $ 1,000). This is a recipe for disaster. Ideally it should be maximum drawdown of 20% -30% of your capital, not 100%. If you do not like math, use a free calculator to determine the exact lot ZuluTrade Calculator – FXOptimax

    2. Overconfidence

    After a few weeks of SP that you follow consistently profit, most people start itching to mess up their own risk plan. “During this profit anyway, really small drawdown, gw aja naikin his lot until fixed.!!!! ‘
    Throw away those thoughts, unless you balance plus (so in accordance with the risk plan), or your balance increases significantly because profit.
    Selogis might think a basic odds with science is taught in high school. If an SP has an average 80% profit position, means that 1 out of 5 of his trade will loss. If you have a 10x profit in a row, then the loss will be even greater possibilities. So do not raise your risk by increasing the lot while being a great opportunity loss.
    The film titled 21 could be a good reference for the application of science opportunities.

    3. Perceiving excessive SP

    The pilots usually fly on autopilot, except during take off and landing. But if the plane crash, the pilot will take over control of the plane. Likewise, if the trend is considered much too strong in a particular direction (the opposite direction of where you are), you can do hedging, or to close the position. But should the decision to hedge is based on logical analysis, instead of to fears or panic.

    4. Capital is too small

    If you do not have sufficient investable funds, do forex trading. You can not expect capital of $ 200 you can give a profit of $ 200/bulan, so you can retire from your job. Rational profit was about 100% a year with a risk that is “reasonable”. And you need a $ 300 – $ 500 to trade 0.01 lot with a risk that is “reasonable” is. If you do not have a budget invest that much, so look for another job to raise capital. Zulutrade or other systems (the minimum tradenya 0.01 lot) is not for you that has a capital of only $ 100.
    With funding of $ 100, you’ll want to consider PAMM than autotrading.

    5. Does not account for commissions

    If your broker charge 2 pips and your SP rata2 8 pips profit per trade. Then the commission will be worth 25%. If SP 100X and you follow trade 0.1 lot. Assuming a 80x profit 10 pips = 800 pips and 20x loss 20 pips = 400 pips, then your net profit is 400 pips, and the commission is 200 pips, aka half of your profits. Look for systems / broker as cheaply as possible, if necessary, its free!

    That’s all! Do not let trivial mistakes like this makes you much less loss MC.
    Download trading strategy with fibonacci lessons (complete version) >>>

  2. #2
    Junior Member
    Join Date
    Aug 2012


    Hello james_wong, good and informative post you have here. Are you using Zulutrade for a long time now? I am an investor and want to put my money in zulutrade.

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