ZuluGuard: A Better Way to Manage Risk in Social Trading

ZuluTrade, the novel social trading and social wealth management platform owned by Finvasia Group, reveals its “secret formula” for risk management in social trading Social Trading Social trading is a relatively new method of trading in which retail traders buy or sell financial instruments based on information provided from fellow financial traders. Typically, a less experienced trader gauges information shared by more experienced traders, who often have demonstrated a successful record, and places their trust in their superior knowledge. While the rise of social networks such as Facebook and Twitter have accelerated this form of trading.There are now many dedicated stan Social trading is a relatively new method of trading in which retail traders buy or sell financial instruments based on information provided from fellow financial traders. Typically, a less experienced trader gauges information shared by more experienced traders, who often have demonstrated a successful record, and places their trust in their superior knowledge. While the rise of social networks such as Facebook and Twitter have accelerated this form of trading.There are now many dedicated stan Read this Term. ZuluTrade’s advanced risk management tool, ZuluGuard, gives investors the flexibility to control their risk exposure by setting a few parameters that trigger an automated action.

The benefits of using this tool go a long way. Although the majority of strategies available on ZuluTrade’s platform are carefully backtested before becoming accessible to the public, unforeseen market downturns may impact their long-term profitability. When this happens, ZuluGuard can help investors minimise losses by monitoring their account activity and analysing it against the strategy being copied. This way, ZuluGuard adds automation to risk management, eliminates emotion and gives traders the luxury to go hands-off if they wish.

How does ZuluGuard work?

Powered by a proprietary algorithm, ZuluGuard monitors and scans the activity of each Trader’s strategy behaviour and removes it from the Investor’s account upon detecting any deviation from the standard loss profile. This adds an extra layer of protection on Investors’ accounts, offering them the confidence and peace of mind they need to build wealth.

Available to all investors, regardless of their investing potential, ZuluGuard’s unique Capital Protection system essentially stops out any losing positions, according to the users’ preset parameters.

To define their risk tolerance, investors need to enter the level at which they wish ZuluGuard to take action. In this way, they can rest assured their capital is protected around the clock. Even when they are offline.

Most importantly, this revolutionary feature gives investors the possibility to automatically rotate or swap Traders, if their strategies fall below their set risk tolerance and take immediate action to safeguard their funds.

For example, if the maximum investment amount is set to €1000, it means that the maximum amount of potential loss by following a specific Trader cannot exceed €1000. Depending on the investor’s preference, these parameters can be altered at the stroke of a key.

ZuluGuard also enables investors to explore more exclusive options, such as advanced profit and capital protection by setting a fixed or trailing capital loss stop.

Aiming to simplify risk management, this innovative tool is mandatory for the European version of ZuluTrade, and it reflects ZuluTrade’s vision of a secure and versatile investing environment for everyone.

As a risk control tool, ZuluGuard completes the bundle of solutions that ZuluTrade offers to all traders and investors, irrespective of the platform or broker they are registered with. Doing so, the broker-agnostic platform heralds a new era of investing defined by technology enablement and better risk management.

As ZuluTrade continues to hone its offering, new releases and upgrades will find their way to the market soon. Updates will follow.

To learn more about ZuluGuard, please refer to the ZuluGuard Guide.