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Hey all!...What is a good monthly return/drawdown limit ratio target?
gcardo

Member Since Jan 12, 2012  11 posts Ningaloo Investments (gcardo) Jan 18 at 21:38
Hi, I am setting up some targets for my PAMMs accounts and I was wondering what should be my drawdown limit and my monthly return target.

My default setup is 1:1 ratio, but I have no ideas what investors are looking for.
Any ideas?

Best,

Gustavo

Patience + Discipline - Greed = Success
7forex

Member Since Nov 03, 2011  56 posts 7forex Jan 18 at 23:08
Keep doing what you are doing and you will have a lot of clients. Your performance is what investors are looking for!

I love taking risk with the right returns.
gcardo

Member Since Jan 12, 2012  11 posts Ningaloo Investments (gcardo) Jan 19 at 00:28
Great to hear that 7forex.
Thank you
We are posting some tweets about trade sentiments and possible new orders @ningalooinvest.
It will be a pleasure to have you following us!


Patience + Discipline - Greed = Success
OnTheEdge

Member Since Mar 20, 2011  12 posts OnTheEdge Jan 19 at 08:53

   7forex posted:
   Keep doing what you are doing and you will have a lot of clients. Your performance is what investors are looking for!


I agree, your results are what clients will look at...you should have a set draw down % that would 'trigger' so to speak at say 30-40% (just an example) after that point clients have the choice to keep trading or withdrawal their funds... that's how the big boys do it.

As for a % per month...I tried this on my personal account and it had a negative affect as I was aiming for a goal which didn't always work because market conditions are not the same month to month. I found myself forcing trades that I should not have been in...as for your PAMM account this will save you from a client saying 'Hey you said 10% PMG, you only did 5% last month what's up?'

Just my 2 pips worth

gcardo

Member Since Jan 12, 2012  11 posts Ningaloo Investments (gcardo) Jan 19 at 09:40
I agree with you OnTheEdge,

In fact, the drawdown/target return ratio is only an idea of what investos should expect. It is just like the sharpe index.
I am thinking of having three different products. One conservative, one moderate and one aggressive so investors will have the opportunity to choose between them, as I work with a single strategy and what differs one from another is just leverage.




Patience + Discipline - Greed = Success
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