Let us come back to one of the top strategy providers, “Yellow Brick”, which we reviewed last year, August 2020.
We previously chose this strategy provider as our top pick of the week because of their low drawdown of 19% during that time. As we look at their progress now, they are still quite consistent in terms of their overall returns. However, their maximum drawdown has increased slightly to 27% from 19%.
Even though for the year 2021 to date, they are in the red, I believe that with their consistency, they will make up the losses with profits in the remaining few months.
We regard them as a low-risk provider due to their low maximum drawdown and their returns. With their track records, “Yellow Brick” continues to be reliable for investors who are not looking for sky high returns but a strategy provider that continue to protect their downside while producing stable returns.
A quick glance at their trading statements can tell us that their trades average around 20 pips which is great as the current CopyPip still charges a 0.7 pips commission.
What is the verdict then? Will I continue to recommend this provider? If you are a risk-averse investor looking to step into the copytrading industry, then of course, go ahead and follow them.
However, if you are looking to go with someone for greater returns, then they would not be suitable for you. Ultimately, it depends on your risk appetite. For advanced users, you can minimize your risk with safety nets placed in the advanced settings. You can find out how to do this from our previous “Copy Tip of The Week” videos.
Fullerton Markets Research Team
Your Committed Trading Partner
