Zulutrade demo accounts update 11/6/2009

Welcome back Zulu-traders.

In my post Profit-to-Drawdown back on 10/28.2009, I took my new local database of Zulutrade provider history out for a test drive.
The database now has history on over 550 providers and 250,000 individual trades.

Anyway, the goal of the post was to identify providers that produced a high amount of closed profits as a percentage of drawdown on those same trades. The idea is that a provider that takes a 40-pip profit after a -10-pip drawdown is better than a provider that takes a 40-pip profit after a -120 pip drawdown.

Based on that list and some additional screening, I created a series of demo accounts. Let's see how those providers have fared in the week and a half since i've setup those demo accounts. To keep things realistic, I setup each provider with a maximum of 2 lots and a 180-pip stop which are the same settings I use in my real account.

First up is Isunia who bagged 107 pips since I added him on 10/28/2009. 19 out of 20 of his trades were winners. At his peak, he was up 276 pips, but hit my stop on one of the trades. His average pips per winner are about 15 and with 95% percent win rate he's just barely on the positive side of the sustainability equation.

For more on the sustainabilty equation, see my post Zulutrade stops According to the equation, Insunia would have to win 92% of the time on an average winner of 15 pips, so he's just barely positive with a 95% win rate. Anyway, I like Insuna's daily effort and will be watching him closely for a possible add to my live account.

The chart above shows the monthly profits for Isunia. You got to hand it to Zulutrade on those recent user interface improvements that make it easy to make great-looking blog posts.

Next up is Student who netted 49 pips, winning on 4 out of 7 trades. Impressive about this provider is that his maximum drawdown on any trade was -31 pips. His profile indicates these are his real trades, and based on his loss aversion, I beleive him. On the plus side, his win % rate is lower than I would like, but if he can keep his losses to under 100 pips, he could be a winner.

Next up was Sophistication who nabbed an impressive 138 pips and earned the most of my demo providers. At one point he was up over 450 pips which is pretty amazing for a 2-lot limit. Also impressive is that he leaned very heavily on the short side and every trade was a sell of GBP/USD. He would have had an utterly smoking week except that GBP/USD had a pretty good rally and my 180-pip stop was hit twice.

When GBP starts to sell off, this provider is going to make some major pipage. In fact he's short 15 lots of GBP/USD all the way down to 1.62.

Next up was JLOFX who hasn't traded since 10/27.

Last up was wqq899 who was a complete disaster. He only traded twice in the demo period and hit my 180-pip stop on both trades.

I have a few other demo accounts, but they didn't come out of the profit-to-drawdown screen. I'll cover them later or tomorrow.

Enjoy your evening,

Tcxmon