Why DJXCapital trader is not recommended by Zulu4me?
Some members of Zulu4me community asked why we are not recommending DJXCapital as one of the traders to copy, since it’s the #1 ranked in Zulutrade traders ranking.
At first sight, this trader is awesome and in some way, it is! But we would like to explain you why we prefer other traders in our portfolio.
Strengths of DJXCapital Zulutrade trader:
Some of the most interesting facts about DJXCapital are these:
– Almost 2 years trading
– Diversified investments in multiple currencies
– Uses a real account to trade by itself.
– Pretty solid Risk/Reward ratio
– No grid or martingale strategy
– Low slippage, specially compared to average pips per trade
So, as we said before this trader has a lot of strenghts, and some of them are pretty rare, like the great Reward/Ratio including a solid risk control. But, on the other hand, this trader has some drawbacks that you should consider seriously before copying him.
Weaknesses of DJXCapital Zulutrade trader:
All traders have theirs pros and cons, the question is to decide if this balance is favorable or not to your interests. DJXCapital has some weakness to consider:
– The maximum drawdown is 10.000 pips. Of course, the benefits are pretty high too, but if other traders in your portfolio are not able to earn or loss a similar quantity of pips, then your portfolio is not diversified and you are increasing your global risk.
– Up to 140 trades at the same time. Like the prior point, this can break a portfolio if not properly balanced. Imagine all trades losing at the same time, let’s say only 100 pips. You’ll be losin 14.000pips in a “single” trade.
– Trade repetition. Some traders open the same trade multiple times, which is not dangerous, but is not a good praxis. DJXCapital does it permanently and is something that you can’t block with a max trades limitation.
– Even though in the last week he collected more than 5.000 pips, real investors are losing money overall. This happens because many are not aware of his masive needs of equity to trade and hold 140 trades at the same time. So, if you don’t have a big account, your chances to get a margin call during a drawdown increase a lot.
– Equity requirements are 2.400$ (the trader says 3.000$ in his description) but this kind of traders usually needs more in the future do to some hard drawdown. So is better if you think that the minimum equity is around 5.000$ for 1:100 leverage. If you are from Europe and your leverage is 1:30 then minimum necessary equity rise to 15.000$.
As you can see, if you don’t have a large amount of money to invest and diversify among other traders, is wiser to use traders which need less equity and allow you to properly diversify.
DJXCapital can be an option for large accounts, but if you have an account of less than $25.000 this trader probably does not suit your global needs. If you want to avoid margin calls be sure that you are copying multiple traders and you have some equity not being used.
In conclusion, even though this is not a bad trader, we think is not suitable for the majority of our community so it’s not in our list. If you have a large account, then be sure to allocate lots properly in order to stay diversified investing in multiple traders.
Remember that Zulu4me is here for all your needs and questions. Don’t hesitate to send us your questions!
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The Zulu4me Team
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Here you can find all our post about ZuluTrade
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- Why DJXCapital trader is not recommended by Zulu4me?
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