What is the difference between a
Managed Account and the Auto Trade Network account ?
A managed account is were your
account and questions are totally taken care of by our professional management
team and you are charged a 30% performance fee after your account makes 2% from
the high water mark (highest equity point your account has reached). The Auto
Trade Network is were you only receive trade executions into your account (no
performance or monthly fees). Client must manage and handle all account issues
with our approved broker (unless it is an Auto Trade Network issue). (The FCM
and IB are compensated via the bid/ask spread)
In summary, how does your program
work ?
You will open a Forex trading account in
your name. Your account is then traded by our trader via a limited power of
attorney and at the end of the month we receive 30% of the profit if and only if we do better than a 2% monthly return.
In keeping with our company philosophy of full disclosure – please note – that
we may make money on the bid/ask spread. This is normal and customary for most
managed forex accounts.
Where can I open my trading account
?
We trade with several Forex Brokers in the
USA and other parts of the world. Please contact us for proper forms.
What kind of statements will I
receive ?
Clients will be able to login to their
accounts via the Internet and immediately see the trading activity and account
balance. In addition, you may choose to receive monthly statements via the
postal mail.
Can I lose all my money ?
No, there is a 25% stop loss, therefore
should your account ever reach a 25% loss all trading would stop and you would
be notified immediately. Please note that forex is a risky endeavor and refer
to our disclaimer below.
What return should I expect ?
We make no claims for future performance.
However, please refer to our past performance to get an idea of our trading
history.
What kind of leverage options can
my account use ?
Typically we use a 1 to 2 leverage. In
other words, our traders typically will not risk more than 2% of your account
per trade. Please note by using leverage that the risk of loss is increased.
Also take note that we are not able to
adjust leverage on individual accounts due to the PAM (Percentage Allocation
Management) system that we use to manage individual accounts.
What are the fees ?
The Forex Managed Account performance fee
is 30% of the profit as is calculated monthly if an only if the account
achieves 2% or better return. As is normal and customary for managed account we
may receive money from the bid/ask spread.
Can I trade my account at the same
time ?
No. If you would like to trade yourself
then use a addtional account.
How much do I need to get started ?
For a managed forex account the minimum is
$3,000 US.
Can I withdraw money from my
account ?
Its your money and yes you are able to
withdraw it anytime you want. However, we ask that you limit your withdrawals
to the end of the month. Also you are strongly encouraged to give our trader 2 months to realize our full performance.
Is this an offshore investment ?
Depending upon where you are located this
maybe an offshore investment for you.
Number of Years experience trading
currencies ?
All of our traders have over 10 years
experience.
What currency pairs are traded ?
Typically the Majors.
What is the average holding period
of a position ?
This depends upon the account, we
average about about 3/4 days.
What is the risk management and
money management strategy used? How do you control risk on each open position?
Normally stopping points are used to
protect accounts.
What is the maximum peak to valley
draw down of the fund ?
This depends on the fund but
typically not more than 15%.
What is the leverage and margin
used in trading ?
This may vary but typically we never use
more than 10% of the account when trading.
What are some advantages to forex ?
- Can trade regardless of the direction of the US
dollar versus other currencies
- Risk Management
- Trades only occur with the most liquid
currencies in the spot market
- High degree of liquidity
- Excellent risk-to-reward ratio
- Portfolio diversification that cannot be
achieved with stocks, bonds, mutual funds, or ADR’s.
Will trading ever be suspended
during a profitable month ?
Yes! In accordance with our tight money
management and in the best interest of our clients, we may choose to lock in a
profit at any point we feel is advantageous to the overall account
profitability.