ZuluGuard™ Details

Table of Contents

Last updated on 23-Apr-2014

What is ZuluGuard™?

It’s simple – ZuluGuard™ is your safety net when trading in ZuluTrade!

It is there to protect your Equity by always monitoring your account, secure your profits and minimize any potential losses! *

Why would I need a safety net?

Although most Traders typically provide consistent and profitable strategies, sometimes even the best ones can get things wrong! If that happens, we want you to be able to secure your realized profits and minimize potential losses – and ZuluGuard™ can offer you just that.

ZuluGuard™ will automatically monitor your account and the performance of each Trader for you, every second, even when you’re not online! If ZuluGuard™ detects any significant changes in a Trader’s performance, it will step in and protect your account.

All you need to do is set your own risk allowance, the exact parameters of how much exposure you wish to allow in your account prior to ZuluGuard™ taking action!

How does ZuluGuard™ work?

ZuluGuard™ monitors 3 different trading aspects of a Trader in your account, at levels set by you!

  1. Capital protection

    Simply tell ZuluGuard™ up to how much you can afford to lose from a Trader – when this amount is reached, ZuluGuard™ is triggered!

    For example if you set Capital Protection to $500, in case the Trader is losing $500 in your account, ZuluGuard™ will step in. Note here that losses can occur to Traders that are profitable overall. So in the same example if the Trader has closed trades that have a PnL of $2,000 in your account and his next trade has floating losses of -$500, then ZuluGuard™ will step in, and secure profits of $1,500! So your Equity is always monitored and protected!

    • ZuluGuard Take Profit

      Simply tell ZuluGuard the monetary amount you wish to secure! When this profit is reached, ZuluGuard™ will be triggered!

      For example: You set ZuluGuard Capital Protection at $1500 and Take Profit at $800. If the Trader has a total PnL (total PnL = realized + floating) that reaches your Take Profit value, ZuluGuard will step in, close all trades and disable the Trader, securing your profit of $800. Note: You will be able to re-enable the Trader at any moment by re-setting ZuluGuard in your account.

    • Capital Protection Notification

      Get notified when your Used Capital (realized plus floating PnL) reaches a specified percentage of the Capital Protection amount you have set for this Trader.

      Example: You set ZuluGuard Capital protection at $1500 and you set the notification option at 50%. If the used capital for your Trader reaches 50% (- $750) of the Capital Protection amount you have set ($1500), you will receive an email inviting you to monitor closely your account and ZuluGuard Settings for this Trader.

    You can read more about capital protection here.

  2. Single trade protection

    Simply tell ZuluGuard™ the lowest point you can allow for each trade to reach – when any trade of the Trader reaches this threshold in your account, ZuluGuard™ is triggered!

    For example, if you set Single Trade Protection to 200 pips, in case a trade of this Trader reaches a low of -200, ZuluGuard™ will take action.

  3. Max open trades protection

    If the Trader opens more trades than the number you have specified at the same time, ZuluGuard™ will detect this and take action.

    For example, a Trader so far has opened up to 8 trades at the same time and you allow him to open up to 10 as an acceptable increase of simultaneously open trades. In case he opens 11 at any point, or any other allowance more than the 10 you have set, ZuluGuard™ will be activated.

So how exactly ZuluGuard™ protects my account?

Once ZuluGuard™ detects that your allowances have been exceeded, it takes actions according to your needs. So you set up ZuluGuard™ to do what you want and when you want it.

  • Close all Trader's trades

    ZuluGuard™ closes all the currently open trades of the Trader in your account.

  • Disable the Trader

    ZuluGuard™ disables the Trader so that he cannot open any new trades in your account.

  • Replace the trader with equal or better ZuluRanked Trader

    ZuluGuard™ adds to your portfolio a new Trader of equal or better rank, that you need to authorize before you can accept trades from his signals.

Sounds useful! How do I set ZuluGuard™?

Setting up ZuluGuard™ is very easy!

You can enable and customize ZuluGuard™ either from your Dashboard or from your Settings tab.

Portfolio Settings

Simply click on the shield and review/amend your ZuluGuard™ settings for each of your Traders.

The gray ZuluGuard™ shield indicates you have not set any ZuluGuard™ protection for this Trader yet. The orange ZuluGuard™ shield indicates you are protected by ZuluGuard™!

* Important Disclaimer: In volatile, or fast moving market conditions, ZuluGuard closing signals will be filled at the prevailing market price, which may be vastly different from the desired price. Due to this, there may be substantial losses, as ZuluGuard does not always guarantee the desired Protection.