The Trading Session In The Forex
Having the e-forex industry grow will attract traders to managed accounts. According to the former head of foreign exchange trading in the Asian region of a major financial institution who has managed billions of dollars in the forex market the main problem is track record.
One thing you can look into is an advisor with at least a three year audited track record or a verified profit and loss statement from a major bank. Leverage of 100 to 1 is allowed by most e-forex traders.
Standard fees apply to managed e-forex accounts are similar to other managed accounts. One will also have to pay 2% of the account balance per year for the management fee, a 20% incentive fee on new equity highs and a small transaction fee There are also some other queries you can ask a prospective money manager on how he will handle your e-forex account.
Ask what percentages of trades occur during the day session first. Remember that each time the Asian session opens at 7 p.m.EST, Europe at 2 a.m.and the United States at 9:30 a.m.there is always a chance for you to trade. You can decide not to be and still get the advantage.
The next thing to ask is what percentage of the trades went down by more than 50% before recovering to break even or profits. Sometimes the disadvantage with using money managers with low drawdown is that you also have lower expected returns.
The next thing you also want to find out is what intermarket indicators the money manager studies. In case the manager does not look into the dollar index, the major stocks exchange markets, gold and oil then you have to know why.
Be sure you are aware of what has been the manager's worst trade as well. It might cost you in the future if you get a manager that is not yet developed his defensive skills through experience.
Inquire about how much of the profits the manager reinvests as well. Ask your manager if they are willing to reinvest the profits you have gained to a separate account. Most risk will be eliminated in this sense.
You will want to know what his strategy for worst case scenarios is. Most of the time, you will run into an account that is not moving at all. Some managers may want to rotate to new currency pairs.
Be sure you know what return can you expect. You want a manager who has an answer to this query. Take caution if he claims he can accomplish the latter.
One thing you can look into is an advisor with at least a three year audited track record or a verified profit and loss statement from a major bank. Leverage of 100 to 1 is allowed by most e-forex traders.
Standard fees apply to managed e-forex accounts are similar to other managed accounts. One will also have to pay 2% of the account balance per year for the management fee, a 20% incentive fee on new equity highs and a small transaction fee There are also some other queries you can ask a prospective money manager on how he will handle your e-forex account.
Ask what percentages of trades occur during the day session first. Remember that each time the Asian session opens at 7 p.m.EST, Europe at 2 a.m.and the United States at 9:30 a.m.there is always a chance for you to trade. You can decide not to be and still get the advantage.
The next thing to ask is what percentage of the trades went down by more than 50% before recovering to break even or profits. Sometimes the disadvantage with using money managers with low drawdown is that you also have lower expected returns.
The next thing you also want to find out is what intermarket indicators the money manager studies. In case the manager does not look into the dollar index, the major stocks exchange markets, gold and oil then you have to know why.
Be sure you are aware of what has been the manager's worst trade as well. It might cost you in the future if you get a manager that is not yet developed his defensive skills through experience.
Inquire about how much of the profits the manager reinvests as well. Ask your manager if they are willing to reinvest the profits you have gained to a separate account. Most risk will be eliminated in this sense.
You will want to know what his strategy for worst case scenarios is. Most of the time, you will run into an account that is not moving at all. Some managers may want to rotate to new currency pairs.
Be sure you know what return can you expect. You want a manager who has an answer to this query. Take caution if he claims he can accomplish the latter.