Hi - After a severe kicking on the market I've decided that trading directly is not for me and its better to find someone to do it on my behalf.
I have gone through this thread, 54 pages, and its depressing to see how many of the people putting themselves forward as money managers have over the year taken catastrophic losses or have simply disappeared off the radar. They seemed credible at the time and that makes me fearful about trusting my money to anyone else... But, I have to face as a trader I am a hit and miss amateur and my money needs a professional. I have a full time job and family so spending the time to actually learn and trade to a required level is not really a realistic option.
May I ask for some advice...
1. Managed accounts - I figure minimum of a year's trading history...broker FCA regulated....Anything else I should be looking at? To be honest id be perfectly happy with an 8% monthly return. I've seen performance rates as low as 20% and as high as 50%. What is reasonable?
Can anyone give a recommendation for a service that you are using?
2. If you had an investment pot of say £30k would you split it into different managed accounts to spread the risk?
3. I have largely discounted copying signals or using robots. Am at work so can't really monitor the trading. Am I wrong? Is this the way to go?
Your comments or advice would be much appreciated.
1. There are many things you should look at, not just 1 year trading history. For example: Is it demo / real account? Is the track record verified? (to avoid data tampering). Is the trading privileges verified? (to avoid giving your money to someone who posts someone else's fund because he knows the investor password). Is it using a custom date? (some funds show great return until you adjust the date). Is the broker credible and well known? (I've read some small brokers alter data from their server). Does the manager hold losses all the time? (I've seen 2 years exceptionally great fund but one can easily glance if the manager has risk management or not by looking at the equity growth - the yellow line in the chart vs the equity (the red line in the chart). Many people trade without stop loss and hold losers using hope & pray strategy if price goes against them until one day they get margin call. A 2 year profitable fund is useless unless it has good risk management.
Return wise, in the investment world, if you have lots of money and big hedge fund manager, a 20% return per year consistently earns you a status of a superstar. Of course, if the capital is smaller, a more aggressive strategy can be employed that gives a higher return. With with higher returns comes higher risk.
2. I would manage it myself because I can do it :)
3. Robots do not work. Market is too dynamic to be automated and at best, robots give a break even performance in the long run. Use a real professional trader.