ForexSpace.com - If it feels as though the markets are against you and every carefully placed position you open yields nothing but woe, you may feel compelled to join a number of traders who are engaging in a new method of so-called reverse trading - and make money from someone else’s disappointment!

Using a free account with a website such as Zulutrade, speculators are able to hop onto the backs of decisions made by any of the thousands of signal providers signed up to the site, opening positions to the reverse of signals provided from losing forex traders. 

Many traders currently like to use third party signal providers to help them find winning trades, but Zulu’s methods take the idea one step further. After configuring their broker account to work with Zulutrade, a trader is free to find the least successful speculators possible in order to place reverse positions on anything opened.  

A vast array of data and lengthy trading records are available to help users find a trader which matches their aims, with the option of placing correlated trades if they wish.

Choosing to reverse trade can provide traders with a simple way to make money, gaining from another’s loss through this free automated account. If a signal provider ends up losing 200 pips in a given month, for example, and a user has decided to reverse trade their signals, they will end the month 200 pips in profit.

Plus if they choose to reverse trade the signals of 10 more losing traders and each of them loses an average of 100 pips, then this would add up to an additional profit of 1000 pips for that particular month.

But we wonder how many traders would consider using with such a strategy? Engaging with markets, but acting counter intuitively to the headlines and sentiment would surely feel an unnatural and unsatisfying process?

And as with any trading strategy, there are risks attached to reverse trading. A user may think they have come across a consistently unprofitable trader and begins reverse trading their signals, but that does not mean that the system will not be profitable at some late stage. For any nervous first-timers, there is the option of not going completely automated by entering stop loss limits to curb any losses which may be the result of a surprise upturn in your signal provider’s luck. Drawdown may also be controlled by the user – as opposed to the signal provider – should this be preferred.

Have you tried reverse trading with Zulutrade or any other site? We would be keen to hear of your experiences, so leave us your comments below or tweet us @Forex_Space.

Sarah Cox. Markets Writer, ForexSpace.com