Managed forex accounts

[robster]

Hi, has anyone out there had any experience with a managed forex account?
There's alot of them out there and I'm finding it hard to see the difference from a good one or a bad one from their websites.

What relevant questions should I be asking them?
What way do they measure their performance? Some quote pips per month and some quote a % per month.

Any help would be much appreciated.

Thanks

 

[Smurf1976]

Re: Managed forex account

One thing I'd want to know is how long they've been around and what their performance has been like over time?

It's easy to fluke a few successful trades and, with high leverage, make a fortune in forex. The hard bit is not subsequently losing the whole lot when your luck ends.

How many years have they been around and how well have they done over that time? Note that I said "years" - if they haven't been around for several then I'd be very cautious.

Any links to these accounts? I wouldn't mind checking a few out myself.

 

[BentRod]

Re: Managed forex account

Smurf,
A couple at Dukascopy:

http://www.dukascopy.com/swiss/english/management/funds/

Looks like they have closed them now some stats there though.


More at FXCM:

http://www.fxcm.com/managed-accounts/managed-accounts-programs.jsp

These guys must have been short USD the last 9 months???

I read of another fund that is based on the SSi index that was getting killed but I can't find it now.

I think it was Dailyfx and it was down 40% last time I checked.

 

[bumclouds]

Hey guys,

What are your opinions on Managed Forex Accounts? Have you ever used one before? What were your experiences?

What are some of the more reputable managed forex companies around?

Andrew

 

[Reverse]

Hello,


Usually the first thing that you have to ask a manager is what he is expecting to make per month. Anything above 5% per month is starting to look a little bit too dangerous. If the manager says that he could make over 10% per month, then run, he is a beginner and he is on another planet with his unrealistically returns.
Ask for the drawdowns(the NAV draw down).


And in generally see what is his risk profile. Too risky > very high probability to lose your funds.

 

[tayser]

Usually the first thing that you have to ask a manager is what he is expecting to make per month. Anything above 5% per month is starting to look a little bit too dangerous. If the manager says that he could make over 10% per month, then run, he is a beginner and he is on another planet with his unrealistically returns.
Ask for the drawdowns(the NAV draw down).

What a load of ****, if you're making less than 5% you're not worth opening an account with.

 

[Dracuu]

What a load of ****, if you're making less than 5% you're not worth opening an account with.

Are you serious? Dependent on the amount of money you manage 5% per month is huge. I trade several accounts and my aim is to make 5% per month with no more than a 1% DD and most people with a good size account would be very happy with that.

I guess if the accounts are small and the client can tollerate high risk without a problem then you simply trade the account more aggresively and hope in the long run a good and regular return can be sustained.

Even the best traders in the world don't make a consistent 5% per month over years so I would have to aggree with Reverse, if someone even mentions more than 10% per month consistently then just be very carefull.

A lot of these managed fx accounts are people using ea's (automated trading) that are only very short term profitable. They use aggressive trade management like martingale to achieve unbelelievable results in a very short period of time but in the end they pretty much all blow up. I have even witnessed first hand people signing up several live accounts and using the same ea on each of them but setting different parameters for each one and 7 of the accounts blow up but 1 rakes it in and then they use that 1 to get clients and then in time that one also blows up. Be very very carefull.

 

[Nooob]

Is it against the forum rules to name the good FX managed funds?
I used to trade FX years ago and due to weak risk management, I've lost all of it.

I'm still very much interested in investing with a professional forex fund manager company but I don't know any good names.

I will appreciate any suggestions

 

[TulipFX]

Forex is quite unregulated because of its decentralised nature, so the notion of 'buyer beware' is very much the case.

Because of that you want to see:

• Real account(s) traded over an extended period of time.
• The risk profile are they using on their managed accounts.
• Is it manual or automated trading.
• Is the fund based on one system or a portfolio of systems.
• Does the entity demand your money, or can you use a discretionary trading account where you retain ownership of your funds.

Hope that helps you a bit.

 

[BrianFXman]

What a load of ****, if you're making less than 5% you're not worth opening an account with.

5% per month with only a 1% drawn down per day is okay

 

[BrianFXman]

Is it against the forum rules to name the good FX managed funds?
I used to trade FX years ago and due to weak risk management, I've lost all of it.

I'm still very much interested in investing with a professional forex fund manager company but I don't know any good names.

I will appreciate any suggestions

Just google Forex Managed Accounts and I use one of the MDA providers within the top 3 organic results. Only 1% drawndown and passivly traded for performance based fees, rather than transaction based fees.

 

[Aussie Investor]

you may also consider signal providers...you have money on your own broker account and just copy their signals. You can also set your own security settings like max. stoploss, max. open trades, etc....

 

[Robert Brown]

Hey guys,

What are your opinions on Managed Forex Accounts? Have you ever used one before? What were your experiences?

What are some of the more reputable managed forex companies around?

Andrew

There are a number of advantages that a managed account offers to the trader. Experience that can only be gained through long term involvement in the markets is the only asset that can reduce or even negate the large risks associated with currency trading.

 

[James Martin]

A managed forex account allows a professional manager (or someone who claims to be so) to trade your funds on your behalf for a salary or a fixed share of the profits. Some trading software implements a special feature which allows ordinary clients to act like money managers and to trade for others while using the account structure of the broker.

Hey guys,

What are your opinions on Managed Forex Accounts? Have you ever used one before? What were your experiences?

What are some of the more reputable managed forex companies around?

Andrew

 

[dave69]

you may also consider signal providers...you have money on your own broker account and just copy their signals. You can also set your own security settings like max. stoploss, max. open trades, etc....

Signal Trading .. it all depends on the signal you are.
If you get the signal late and usually these signals are scalping ie for 5 pips then you are wasting your money.
its a pyramid scheme.

Luckily the regulators are clamping down on these and people selling will need a license.

 

[dave69]

A managed forex account allows a professional manager (or someone who claims to be so) to trade your funds on your behalf for a salary or a fixed share of the profits. Some trading software implements a special feature which allows ordinary clients to act like money managers and to trade for others while using the account structure of the broker.

The professional manager will need to trade under a MDA licensed holder.
Trading on behalf of someone else will be soon phased out if not licensed

 

[dave69]

Just google Forex Managed Accounts and I use one of the MDA providers within the top 3 organic results. Only 1% drawndown and passivly traded for performance based fees, rather than transaction based fees.

Yes depends on the type of trading the fund does.
certainly if they are active then transaction based fees aren't the go.

management fee and performance fees are the norm

 

[dave69]

5% per month with only a 1% drawn down per day is okay

that's ideal considering you are lucky to get 10pct a year from a super fund manager