Category Archives: Managed Forex Accounts

FXCM Managed Accounts Monthly Review for July 2008

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FXCM just released the July 2008 edition of their monthly managed accounts review. The following topics are covered in this edition:

Topics:

  • The Performance and trading activity of FXCM’s four Managed Account Programs:
    Sentiment
    Sentiment Aggressive
    Short-Term-Opportunity Aggressive
    Dynamic Multi-Strategy
  • Comparing program performance to the stock market and examining a currency account’s place in developing an investment portfolio.

I am mainly interested in the performance and trading activity commentary so I’m going to reproduce only this more relevant content. In case you’re curious, I happen to be invested in FXCM’s Sentiment Aggressive managed forex account. Ok, let’s see what FXCM has to say about the performance of their managed accounts:

Sentiment Programs

In the month of June, the Sentiment Program ended the month at 0.28%, while the Sentiment Aggressive Program finished at ‐0.59%1. While the ranging pairs ended the month profitably, the trending component struggled, particularly due to GBPUSD and EURJPY, both of which were in a very volatile range for much of the month. The USDJPY, which was the best performing trending pair last month, was the best performing ranging pair, and best performing overall pair this month.


Short‐Term Opportunity Program

The Short‐Term Opportunity Aggressive program posted another profitable month at 3.9%1. Once again the short‐term ranging component outshined the others, with its most profitable trades taking advantage of the sideways volatility in USDJPY and GBPJPY. While the breakout component was also profitable, the long‐term component drew down moderately, with the worst pairs in this component being GBPUSD and EURUSD.

Dynamic Multi‐Strategy Program

The Dynamic Multi‐strategy Program finished the month slightly negative at ‐0.11%1. There was a clearly defined segmentation as the more trend focused components drew down, while the ranging and breakout components performed well. As with Sentiment, the best performing pairs were the GBPJPY and USDJPY. Similarly, the worst performing pair was the EURJPY, as it was not able to take advantage of the ranging conditions.

If you wish to read the full report or are interested in the additional commentary please click this link to download the PDF document (opens in new window)

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

GalleonFX Loses Once Again

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GalleonFX managed to score another loss yet again. As you can see from the performance results below June 2008 is a losing month for GalleonFX.

June 2008
EUR -1.32%
USD -1.53%
gross returns

I closed my Galleon FX account last month so I just want to let you folks know that I will no longer be reporting about anything GalleonFX related. Nor will I EVER consider opening a managed account with them again. In my eyes GalleonFX’s performance lately can only be described as garbage. Want proof? Take a look at this:

01/08 -32% -33%
02/08 +9.0% +16.8%
03/08 +1.2% +1.0%
04/08 -29.0% -27.4%
05/08 -9.17% -8.95%
06/08 -1.53% -1.32%

-33%! 27.4! This is simply unacceptable.

I wish those of you still on board this sinking Galleon the best of luck.

Oanda – “Dynamix” fund is back in action

I just got word that

About the strategy:

“As usual capital protection is primary objective so maximum draw down set to 10%. I will be trading small but long term positions of GBP EUR CHF vs USD. Leverage is 1:50.”

Fees will be 10% out of profits gained applied once in a three months (automatically by OANDA).

Investors are free to allocate any starting amount.

How to join:

Use this link to join the fund – Join “Dynamix” fund.

Do not forget to send paperwork to OANDA – POA.pdf

Power-Forex: IPAM Armada Managed Forex Account

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Greetings everyone. I’ve got a new managed forex account for you folks to check out. One again this one also comes from Income Plus Asset Management Inc. (IPAM) The name of the managed account is “Armada” and it trades at IFX. IFX is a U.K registered company and is authorized and regulated by the FSA (financial services authority).

Like all of IPAM’s IFX based managed accounts Armada operates on LAMM (Lot Allocation Management Module) technology. The only noticeable difference between the Armada and IPAM’s other IFX operated accounts is the per round turn performance fee, which is set at $2.50 per 10K round turn lot compared to $3.50 for the other ones. Although I know many people (including myself) do not like per round turn performance fees, keep in mind that the performance results are NET of ALL fees.

Ok, let’s go into some details about the Armada account:

Trading Style: Short-term trading employing maximum risk control while applying proprietary technical strategies on both a day and swing trading basis.

Key Points – IPAM Armada

  • Number of strategies – multiple time frames: 35
  • Average trades per month: 70
  • Average holding time per trade: 1 – 5 days
  • Currency traded: EUR, USD, GBP, CHF, JPY, CAD, AUD, NZD and their crosses
  • Strict Risk Management: multiple loss control techniques and extensive trade management tools implemented on every trade
  • Fully Automated: All Trading Done by Computer Algorithms
  • Minimum investment size: $10,000
  • Management Fee: $2.50 per round turn 10,000 lot plus 25% of net new high equity
  • Monthly results, net of all fees, may be viewed at IPAM Armada Performance Results

Please Note: All gains, losses, and trading fees are distributed by the LAMM (Lot Allocation Management Module) account on a percentage basis so that all accounts, regardless of size, obtain the same percentage returns.

As you can see this one has a much higher minimum investment size compared to the IPAM Platinum at FXCM account that I mentioned in a previous post. Also, the returns are much higher. Luckily though this account has managed to achieve these high returns with only two losing months since 2006. Keep in mind though that this account is traded by computerized strategies unlike the IPAM Platinum which does involve a certain amount of human intervention, or as we say in the trading community, “discretionary trading.” However, this does not necessarily make it inferior to IPAM Platinum or any other human traded accounts. There are many variables to consider and the long term performance record is what really matters in the end.

So there you have it folks, another managed forex account for your consideration. Stay tuned to this blog as I will be introducing other managed forex accounts later on.

Happy Investing!

Alan


Power-Forex: IPAM Platinum Managed Forex Account Officially Launched

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A few posts back ( post 1, 2 & 3) I talked about IPAM’s new “Platinum” managed forex account and I gave you all the opportunity to beat the masses to the gate and sign-up for it a few days early. Well, I just browsed on over to IPAM’s website and saw the new Platinum managed account listed in the Systems Overview page, so this new managed account has finally been made available to the public at large.

You can find performance details going back to the beginning of 2005. I was pleasantly surprised to see that the record shows that they’ve had only 1 losing month since 2005! And even the the loss amounted to -0.04%! In most cases the returns are not astronomical but they are very consistent and to me that’s a lot more important. If this continues I have no doubt that it will turn out to be a very successful and popular managed forex account offering.

Here are some details about this new managed forex account:

IPAM Platinum System at FXCM

Trading Style: Short-term trading employing maximum risk control while applying proprietary technical strategies on both a day and swing trading basis.

Key Points – IPAM Platinum

  • Number of strategies – multiple time frames: 25
  • Average trades per month: 75
  • Average holding time per trade: 1 – 5 days
  • Currencies traded: EUR, USD, GBP, CHF, JPY, CAD, AUD, NZD and their crosses
  • Strict Risk Management: multiple loss control techniques and extensive trade management tools implemented on every trade
  • Computerized models with discretionary oversight
  • Minimum investment size: $1,000
  • Management Fee: $15 per round turn 100K lot plus 25% of net new high equity
  • Monthly results, net of all fees, may be viewed at IPAM Platinum Results

Interested parties are invited to checkout the Income Plus Asset Management Inc. (IPAM) website for more details:

Click here to visit the IPAM Platinum system information page