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Zulutrade Backtest Scam

Discussion in 'Scam Alerts' started by Bravewildheart, Sep 9, 2011.

  1. Bravewildheart

    Bravewildheart Private

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    I lost almost $2000 on my 2 accounts due to Zulutrade's faulty backtest.

    A warning for all Zulutraders.

    1. Please take note that the backtest is only useful to determine the estimated profit that could have materialised in the past, with the maximum open trades and maximum open lots followed by the Signal Provider, without taking into account any stop losses or stop limits.

    2. The backtest does not take your own maximum open trade settings, maximum open lot settings and stop losses or stop limits into consideration. When you change these settings, the backtest remains the same. The only factor which influences the backtest graph is your own ‘lots multiplier’ setting.

    3. Do not, however, measure the Max DD on the DD graph and adjust your lot multiplier accordingly, as you will receive a Margin Call sooner than expected. The real DD is, in some cases, up to 10 times more than the Max DD displayed on the backtest graph.

    4. The drawdown graph on the backtest only displays the max DD of a trade on the day that the trade closed, not on the day that it happened. It is totally skewed. You can do your own comparison by comparing a SP’s backtest with the SP’s drawdown graph on the SP performance page.

    I have written numerous e-mails to George at Zulutrade with no resolution or results.

    Everyone that is currently doing the backtest is getting scammed.

    Check attachments for more info.
     

    Attached Files:

  2. hayder13

    hayder13 Recruit

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    i have similar story like your's just with another providor :mad:
    his name Sharper Trade
     
  3. tz1244

    tz1244 Recruit

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    I also have unsatisfactory results with sharper trade.Thank god, I managed to sl on time and switched to shooting pips and richter
     
  4. Bravewildheart

    Bravewildheart Private

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    I am so impressed. Zulutrade have managed to do the impossible according to George and give us a true DD graph. Their backtest are displaying the true drawdown from this week.

    The other issues are still not fixed about the stops/limits and max open trades. There is also no note about that on the backtest either.
     
  5. zulutrade sales

    zulutrade sales Recruit

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    Dear FPA Forum Team/Bravewildheart,

    The Backtest function available on ZuluTrade's website is based on past data and cannot be used as a method to identify future drawdown or end results; the Backtest function can only be used to analyse and identify results with the benefit of hindsight.

    Because ZuluTrade cannot have every individual trade's drawdown history, the Backtest drawdown graph was displayed exactly as described by Bravewildheart, so that if users customized the provider settings to remove certain currencies, the graph would not show those currencies drawdown. However, after complaints received over this functionality, we have now updated this graph to show the total portfolio drawdown exactly as displayed on individual provider's page. This creates a pessimistic calculation since it cannot be customized per currency, and still cannot guarantee future performance or drawdown.

    We must emphasize once more that we have never in any way encouraged our users to use the Backtest graph (or any other performance analysis dataset) as a definite tool to predict future performance. No “safe” trading system has ever been devised, and no one can guarantee profits or freedom from loss. Therefore a scam report that we tried to purposefully misguide Users is not justified, especially since the total drawdown information and graph for all providers are already on the provider's public performance page to all ZuluTrade.com visitors and traders.

    Hope this helps to clarify the situation.

    Best Regards,
    The ZuluTrade Team
     
  6. Bravewildheart

    Bravewildheart Private

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    Dear FPA Forum Team / ZuluTrade Team,

    I would first like to comment on Zulutrade’s comment: “ The Backtest function available on ZuluTrade's website is based on past data and cannot be used as a method to identify future drawdown or end results; the Backtest function can only be used to analyse and identify results with the benefit of hindsight.”

    Any investor knows that the past performance of any stock, currency, commodity and signal provider doesn’t accurately predict the future, but all technical analyses and future predictions are based on past data and performance. Due to this fact, the accuracy and presentation of the past data is of utmost importance. Any experienced investor takes losses and understands that losses could occur due to the past not repeating itself in the future. However, if the past keeps repeating itself, and the investor makes a loss due to false representation, he is not at fault.

    I would like to see Zulutrade take responsibility not only for my unnecessary losses, but also for the way they market themselves as an easy and profitable system in which to invest.

    Zulutrade market their backtest intensively without mentioning all the flaws discussed in above posts. As quoted:
    “You are able to backtest the performance of the Signal Providers` portfolio for a period of six months, concerning the trading signals generated by the signal providers”

    Complaints were made about this on the Zulutrade forum:
    ZuluTrade Forum • View topic - Backtesting functionality and ZuluTrade Forum • View topic - Backtesting USELESS without taking stops etc into account
    On 12 May 2011 Mario, from Zulutrade, said the updates will be made ASAP and on 7 June 2011 the same remark. As of today, these updates have not yet been made.

    Zulutrade is supposed to be an easy way to invest in the forex, which means that the average Zulu trader would have very little prior experience and wouldn’t be able see the flaws without intensive investigation.

    Zulutrade markets the amount of pips and $’s made by their top 5 Signal Providers intensively on their home page. But what they don’t tell you is that these same SP’s have, this past month, lost millions for their investors. Herewith follows a breakdown of a few SP’s that I have been following and the amounts lost:

    Signal Provider September 2011 End September 2011 Investors money lost
    Ranking Bal live acc.Ranking Bal live acc.
    (Millions) (Millions) (Millions)
    Sharper Trade 1 $23.40 297 $10.60 $12.80
    Shooting Pips 2 $11.30 1211 $1.70 $9.60
    Best Trader 3 $15.50 107 $4.50 $11.00
    AtlanticPips 4 $13.20 630 $6.30 $6.90
    Canadian FX 6 $14.00 5664 $3.60 $10.40
    zuluHulu 10 $13.70 615 $2.90 $10.80
    Zulumaster1 27 $19.90 510 $5.20 $14.70 Total $76.20

    There are many other Signal Providers that were also amongst the top rankers that I have not been following that also lost a tremendous amount. I know that some traders had a combination of these SP’s and a few disabled the SP’s, which makes the total of $76 million lost a little exaggerated. But again, if one takes into consideration that I haven’t listed all the SP’s, it could be closer to the truth.

    According to the SP’s performance pages approximately 90% of the investors that had the minimum required equity stated by Zulutrade, lost all their capital and about 50% that had double the minimum required equity lost all their capital.

    I wrote a post on the forums to requests an auto deactivation setting in May 2011: ZuluTrade Forum • View topic - Automatic deactivation setting I also wrote a letter to Zulutrade concerning this, without a proper response, which I have attached to this post. If this auto deactivation and stop setting had been available to the Zulu traders, less than half of their capital would have been lost during this past month.

    If one reads the Zulu traders’ comments on the Signal Providers’ performance pages and looks at their public profiles, one would realise that more than 90% of them are losing money and the few that are in profit only trade for a short period.

    Despite losing money I also had to deal with:
    1. A lot of slippage. I had to request numerous audits and had to spend all my time trying to keep a record of everything.
    2. Accounts that are disconnected for no apparent reason, causing me to lose the successful trades. Zulutrade’s response was that it is too complicated to calculate one’s loss of profit, but at least one didn’t have a loss.
    3. I based some of my strategy on the ranking position on Zulutrade and a few weekends ago some of the top 10 SP’s moved to the 1000’s with no logical explanation. I contacted support and Jia, that helped me, didn’t even know how to find the SP’s that were ranked at the top for months! He gave me the most ridiculous explanations of why they had dropped. A few days later they were placed back in their old positions.

    Now, based on the following, am I asking the question: Could we classify Zulutrade as a Scam or not?

    Zulutrade knows from their own records, that 9 out of 10 Zulutraders lose all their money in the first 6 months;
    They are also informed that their backtesting that they are advertising is misleading;
    They know that the profit performance on their homepage regarding the top 5 Signal Providers’ Performance is not valid for more than a few days;
    They also know that they can put systems in place to protect the Zulutraders’ capital, but they don’t, suggesting that it is too complicated;
    As quoted from the Zulutrade website: “Autotrade the FOREX market like never before! Let ZuluTrade drive trades by specialists into your FX account FOR FREE [1]”

    So, is Zulutrade a scam or not?
     

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    dr_spear likes this.
  7. FXeria74

    FXeria74 Recruit

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    I read in the forum announcements (ZuluTrade Forum • View topic - Backtester) that they will fix it. Taking into consideration how fast came the previous updates, I am positive this system glitch will be fixed soon ;)

    As for the rest you are writing, mate, I found it a bit unreasonable to write a whole essay trying to justify your actions and project to the system your own personal choice of trading. After all, as you write, if you do NOT use stop/loss (as the system indicates), you are bound to absorb big losses.
     
  8. ANDREW KING

    ANDREW KING Recruit

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    :mad: First off DO NOT USE ZULUTRADE. I traded with them following a couple providers but soon found out all of the flaws, and of course they are not thier problem and do not compensate you fo them. You will never get the posted results of a signal provider, there is to much delay in the time it takes the signal to be transmitted to Zulutrade, then Zulutrade to send the signal to your account. Often I would spend hours in the evening looking through my closed trades to see why my results were negative and my providers would be positive. The signal provider would make 20 pips and i would loose 5, this would be repeated over and over. There would be delays in the execution. I asked what broker the trader was with so I could ope nan account with that broker to speed up the execution, still to many problems on Zulutrades side. Also they have a disclaimer on thier website I was directed to when I complained about my results not matching my providers, it is something to the affect that they do not encourage scalping, moving in and out of the market quickly. Also if you look at the signal providers I was not able to find any that did not have huge drawdowns.
     
  9. Russel Grant

    Russel Grant Recruit

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    For the choice of providers and correspondingly their scalping practices it is only you to blame. The system pretty much tells you everything you need to know - there are read signs all over when a provider is reckless; notification is sent when he decides to change strategy; warning msgs when he is short on capital, and if you ignore all of these/or managed not to see them (which is quite impossible) you can always close the open position prior to loosing money. There are also trading walls; alchemies settings, forums where other users write, so many indications! If you do not know your system well, well don't expect to earn of forex.
     
  10. ANDREW KING

    ANDREW KING Recruit

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    Zulu trade is a scam, it will sink your account

    I stand by my previous accounts, and I have had similar issues as "bravewildheart" posted above. So you think I am to blame "Russel Grant" for the delay issues in getting trades executed in my account? I am to blame that there were constant connection issues with my trading account? Sending notifications out like you claim is something they have started since I closed my account down, I spent countless hours chatting with Zulutrade to get credits back to my account for screw up on their end. Almost everyday I would be chatting with them about why my results never matched up with my signal providers, and almost everyday after going over the issues, they would credit my account for a few of the pips but never would compensate my account for trade signals that never got transmitted and I lost out on. I will never use ZULUtrade again, they will wipe your account out.
     
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