In the previous pill we discovered the TradeWall and its cascade of trades performed by the Zulutrade Signal Providers.
On this TradeWall page however, there’s not only this long self updating list. On the bottom right there is another small section, called “Trading Activity“.
It’s a series of numbers in percentage matched to a list of currency cross, specifically 30 pairs.
In the image we report the first, because otherwise the image would be too long!
Is explained by Zulutrade that “Zulutrade’s signal providers have opened the following positions during the last 4 hours.”
For each currency pair, Zulutrade shows us how many, in percentage among all the Signal Providers, have opened positions in the same direction.
73.5% short EUR / JPY means that among all the Zulutrade Signal Provider who have traded in the last 4 hours, opening positions on EUR / JPY specifically, the majority of these opened short positions, and this majority corresponds to 73.5% of those traders.
It goes without saying that the 26.5%, always of those that in the last 4 hours have open trades on EUR/JPY, have opened long positions instead.
Zulutrade shows us only the portion of the majority.
To be honest, this is not an element of Zulutrade neither important nor useful with regard to Mirror Trading. But for what concerns the pure trading can be rather interesting.
Personally, as a trader, sometimes I’m curious to see how other traders like me are positioned, what they think, what they are doing, also to understand what can be the feeling of the market.
Rather than being a useful tool for the follower, this is a fun tool for the curiosity of the trader, infact with your real Zulutrade account you can also trade personally.
I personally consult it from time to time, and I stop when I see a high percentage of traders who are all positioned in the same direction.
The reason is simple. One of the first lesson when you enter the world of markets and trading is to not trust, or rather strongly doubt, when everyone thinks or are positioned in the same direction, because the trap is around the corner, and when triggered, can be very dangeous.
See you in the next pill.
Filippo