Hi Guys,
I would like to write about my journey with a managed forex account.
We had discussed a lot about it since the start of the robot and I was a bit sceptical but last month I decided to try it on my own.
You can follow my real money account’s balance and the result of closed trades here (started in september): [B]http://www.mt4i.com/users/zoldhasu[/B]
Some details about the robot:
- started on the 18th january 2011
- solid 3-5% net profit/month since the start
- works with low drawdown (low risk)
- it trades on MAM accounts
The robot’s development has been an ongoing process. After a lot of backtest and development it started to trade on a live account on the 18th january 2011.
Official results since the start: [B]http://qxxlalpha3v.mt4live.com[/B]/
I joined about at the 3600th trade.
At the early stage it started to trade only on EUR/USD and a new currency pair joined each time after the managed ammount had reached another $250,000. Now it trades GBP/USD, USD/JPY, USD/CHF, EUR/USD and waiting for USD/CHF. The automated trading is based on mathematical correlations as opposed to fundamental, technical or arbitrage-based trading.
Depending on the market conditions, the robot may open as many as 20-30 trading positions and once the expected profit has been achieved it will automatically close almost all trading positions within one trading group.
Minimum funds to open an account is $2000. There is a built in 70% capital protection. It automatically stops trading if it has lost 30% of the capital and won’t trade unless I ask for restart. So after 30% profit my account will be capital protected. So far its drawdown was under 5%. So it seems to work with very low risk and it brings a very stable solid profit every month. It performed well even during extreme market movements, also during the Japanise accident and the Swiss intervention.
It trades on MAM accounts. It means that the robot handles a lot of individual accounts together in a worth of maximum $250.000, and the profit/loss of the trades will be shared among the individual accounts.
I didn’t have to spend money on buying the robot, it works with profit sharing model. The developers are asking for 40% profit share every month, based on high-water mark. The high-water mark ensures that they only get paid for positive performance. So if the robot loses money over a period, it must get my account’s balance above the high watermark before receiving a performance bonus. For example: I give them $2000 and that investment’s value falls to $1900. The robot produces 20% return and that investment is now worth $2280. I only have to pay performance fees on that gain between the $2280 and $2000k, not the full 20% gain ($380=$2280-$1900).
This ensures that they have to improve their robot from time to time to get money.
They only get money if they make profit for me.
There is also a fix $10/month cost for VPS service, so it is protected against internet disconnection and power-cut. It is automatically deducted from my account.
Personal thoughts:
As you can see int he graph the last month’s performance was prominently good, I’m very happy with it . But I’m sure it wont have 16% gross profit every month. The 3-5% net profit seems to be much more sustainable in long-therm. It won’t reduce my account to zero due to 70% capital protect, even so, I would invest only as much money if I would lose its 30% it wouldn’t hurt.
If you are interested in it I post my experience and the results in this topic every week.
