Money Management basics:
Many people claim that money management is the key to success and I fully agree with that. Besides the psychology it is one of the most important points in trading.
Money Management with ZuluTrade:
Manage your risk at ZuluTrade on two ways. Feature number one is the auto allocation mode and the more advanced feature offers the opportunity to manage the risk on your own. As a beginner I recommend you to start with the auto allocation mode.
By setting the risk meter bar, ZuluTrade automatically calculates the best trading volume (lot size) for each trader in your portfolio based on a proprietary formula. The formula is considering historical performance of the trader and your current portfolio balance. Read more about the mechanics of the calculations here.
To avoid a margin call you should set the risk meter bar in a range between 30% – 65%.
Manage your personal risk even more with ZuluGuard. The tool ZuluGuard was created by ZuluTrade to protect followers against strong drawdowns.