ZuluTrade, a social trading platform, has informed Finance Magnates that it is launching a new trading service called ‘Combos.’ Clients using Combos will be able to track a combination of traders, enabling them to find a selection of different profitable trades that work well in conjunction with one another.
ZuluTrade has been one of the major players in the social trading segment of the retail industry for several years. Founded in 2007, the firm mainly attempts to sell its services to newer traders who, lacking the requisite knowledge to trade themselves, can ‘follow’ professional traders and copy the positions they take.
Such services have grown in popularity in the past several years. Just two days ago, Mario Singh, CEO of retail broker Fullerton Markets, wrote a blog post in which he included copy trading as one of the three big trends in the FX retail market.
In the past, such services have generally been fairly simple in their set-up. A client picks a professional trader to follow and then makes their investments based on what the professional does.
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As is to be expected, firms have introduced greater levels of complexity to this process. For example, a client can set their risk appetite and then follow professional traders that are congruent with it.
A new take
Combos makes things slightly more interesting than this. Rather than following a single trader and joining them in whatever combination of trades they make, Combos brings together a selection of trades from different professionals and enables ZuluTrade’s clients to make their tradings accordingly.
Speaking exclusively to Finance Magnates, ZuluTrade CEO, George Ilias, said: “With Trader’s Combos we managed to create a system that enables investors to avoid common pitfalls such as incorrect portfolio settings, suboptimal risk allocation and selecting traders with conflicting strategies. By implementing rigorous backtesting, algorithmic analysis and behavioral assessment of the Traders, the result is an effortless experience for the users in setting up an optimal portfolio that suits their needs and increases their chances of successful copy-trading.”
ZuluTrade did not elaborate on how these different combinations would work in unison to generate cash. One would imagine that one strength of the combinations would be the ability to hedge different positions.
As with other ZuluTrade services, Combos will allow users to set their risk appetite. The social trading platform has arranged the available combinations such that its clients can pick from a mix of conservative traders or a group of highly aggressive ones.