FXCM Dynamic Multi-Strategy Program

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Greetings fellow Forex traders. Today I’m going to introduce you to FXCM’s Dynamic Multi-Strategy Managed Forex Account. FXCM describes this managed account as such:

“The Dynamic Multi-Strategy Program takes an active approach to managing the multiple components contained within its portfolio. By constantly evaluating market conditions to determine which components would have an above average chance of doing well during such conditions it is able to dynamically allocate weightings between these components with the aim of achieving a more robust result.”

Yadda, yadda, yadda. Basically what all that verbiage says is that this managed account employs multiple strategies.

Folks, keep in mind that this managed account offering is very young and as such I think FXCM is still working on tuning their strategies. I believe the performance results illustrate this point, so let’s have a look at them:

Performance  
     
 
  3-Month -7.35%  
 
  6-Month 0.00%  
 
  Year to Date -7.35%  
 
  Analysis  
     
 
  Avg Monthly Return -2.48%  
 
  Max Equity Drawdown -7.60%  
 
  Monthly Std Deviation 3.06%  

Not too impressive, eh? Thought so. Seeing as this managed account has been trading for only 3 months I’d say FXCM has some fine tuning and a few kinks to iron out. Here are the results for those 3 months (all for 2008):

Apr -1.73%
May 0.13%
June -5.84%

Now you’re probably thinking, man, those performance numbers are garbage. Well, you’re right! Thus, my recommendation on this one is to keep a close eye on it but to NOT jump in just yet. Wait a few more months (4-6) and see if the performance improves. By improves I mean if the managed account shows consistently profitable results month after month. Also keep in mind this managed account carries a HIGH RISK level so only invest disposable income. But you’re all wise investors no doubt so I shouldn’t tell you this, right? ;)

I’ll try to keep an eye on this managed account and will update you all on how its performance progresses.

More details about this managed account can be found here:

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

Happy investing everyone!

Cheers,

Alan

6 thoughts on “FXCM Dynamic Multi-Strategy Program”

  1. When it comes to such systems, I am not really too keen on using this because in past I suffered from a lot of losses, so now I am really not interested in using such system again at least till is not guaranteed to bring good results. I am using OctaFX broker, it has daily news and analysis update, so following this means I can easily I am not worried over using anything else and that’s why I am so happy working with them.

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