Saturday 27 September 2014

How to backtest your Zulutrader's providers?

Backtesting and simulation is a good tool to manage your account and choose providers.


Good results in the past do not convert automatically in future profits, but on a medium/long term basis providers tend to keep a certain trading style and associated results.

Bearing in mind this, it is very important to analyse the results that providers had in the past to ascertain that they are in line with our account funding and understand what we should expect in term of profit from each single provider.

Zulutrade offers a simulation tool that make it very easy to backtest your providers and trading strategy.

Simulation Tool


You just need to indicate:

  • Your Starting balance;
  • The Leverage of your account;
  • The Maximum number of open lots;
  • The period of your simulation;
  • If you want to avoid hedging.
Then add your traders and choose if you want to keep a certain level of risk (in this case the number of lots will increase/decrease over time on the basis of your capital) or a defined number of lots for each providers.

You can then click on Start Simulation and verify your results. 

I find this tool very useful especially to verify if a margin call would occur on your account with your current settings.

I tried on my current settings and this is the result on a 3 year basis. 

A simulation with FOR333


Let see what happen in the future and do not forget that good results in simulation do not imply you can close your eyes and earn money. In fact traders change their behavior over time and this can be very dangerous for your capital.

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