Wednesday, December 26, 2012

Average Pips Zulutrade Portfolio

Average pips is a very useful statistical information. If you check any signal provider on Zulutrade, you can see this vaue in his statistics.

Average pips tells you how many pips in average this signal provider makes per one trade.

How is this calculated?

Average pips formula is really simple.
Avg. pips = Total pips/Total trades

How to set up Zulutrade portfolio based on average pips?

The best thing to do is to look for those signal providers that have higher average pips value.
When you go to Zulutrade performance page, you can sort all SPs by average pips value.
This way you will find traders with biggest avg.pips value. However, many of them achieved this simply by taking very big risk.

So to create a very safe but profitable portfolio based on avg.pips, you should do the following thing.

Click on "Advance search" button and you will see something like this:

On the picture above you can see many values that can be used for advanced searching.
You can also see that I have adjusted some values already. So what I did:

1)I set avg. pips to be more than 25pips/trade
2)I set max. drawdown to be less than 10%
3)I set max. drawdown in pips to be less than 100 pips

This way I got only those providers that are not scalpers and make profit over 25 pips/trade in average.
I eliminated those providers who meet first condition, but they do it with high risk. And in 3rd step I eliminated also those who meet both condition #1 and #2 but even though they max. dd is less than 10% it is still achieved in high risk. For example, they open too many trades, earn thousands of pips in total and so 10% dd can still be something like 2 thousands pips!

And here are results for my safe Zullutrade portfolio based on average pips:

Silver Investment Fund and Azar Consulting

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