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Managed Accounts

pt49
Dec 05 2012 at 21:41
221个发言
wlk1 posted:
@pt49 : Do you mean that by law the Australian brokers are required to open a segregated bank account for each and every client, or do you mean that there is a single segregated account in which all the clients funds are placed ?

I just asked my broker and the reply is that the broker has a single segregated account for all clients funds.

In the event a broker becomes insolvent/bankrupt, creditors cannot access the clients funds (apposed to the situation in the USA for instance).

Years ago when Refco went bankrupt, we only got about 10 cents in the dollar back on our frozen accounts after the court cases and the creditors had been paid.

Refco was supposedly the largest retail broker in America at the time. A similar situation is unfolding in America again with MF Global in liquidation.

Wait for the trade to come to you... be patient.
pt49
Dec 05 2012 at 21:49
221个发言
ChallengeFX posted:
I'm a UK citizen, and to open PAMM accounts with a UK broker, such as Alapri UK who are one of the bigger brokers you do indeed need to be regulated and licensed by the FSA. This then leaves the alternative option to use a foreign broker, however these seem to be less well regulated, and actually finding out what client protection and broker liquidation protection you have is another ball game all together.

In Australia the only requirement to manage someones account is that the broker must have your client sign an LPOA giving you permission to trade the account.

The broker then gives you limited access to the clients account so you can place trades only. You cannot move funds in or out, only make trades. Commissions to you for managing the account are agreed to between you and your client are managed by the broker each month.


Wait for the trade to come to you... be patient.
wlk1
Dec 06 2012 at 15:18
69个发言
@pt49 : Thanks for the reply. I currently have that arrangement with my broker. For a moment there, I thought you meant that each client would have an individual account.

What are the implications of this arrangement ? From what I understand, only a portion of the total funds would be 'protected' as a certain amount would have to be released to the broker to hold the positions.

The market will go up, failing which, it will go down.
pt49
Dec 06 2012 at 18:11
221个发言
When a broker goes bust, they close out all open positions, which would mean the funds committed would return to the segregated account I should think.

I mean, think about it, a creditor could not access funds 'in trade', and funds on a closed trade are in the segregated account, not at the broker.

Wait for the trade to come to you... be patient.
maxpro_vn
Dec 11 2012 at 07:06
25个发言
12264 posted:
Good Afternoon All, (AU)

I've been looking into inventing my money into a PAMM account/Managed fund although I'm struggling to find
a reasonable rate of return (monthly) having figures of 30% plus which for me is just to to much risk and
 does not seem realistic in my opinion. If someone could point me in the right direction or even recommend a managed
 fund you use and what returns you are seeing.

Thankyou.
Geoffrey Reynolds.


In my opinion, in forex market, KEEP money is more importance than MAKE money.
I just can earn 10%-15% monthly with my own EA with MAX Drawdown less than 25%.
I prefer Stable Profit & Safety rather than High Profit & Risky.

pt49
Dec 11 2012 at 20:52
221个发言
The man was after 'safe' returns and considered 30% drawdown excessive. In my opinion a 25% drawdown (or even a 20%) is also excessive.

There's nothing 'safe' about using a 20-25% drawdown to make 10-15% profit a month.

In my opinion...

'Safe' is being consistent.

'Being consistent' is growing your equity/balance a bit every month, with little to no drawdown.

'Little to no drawdown' is (in my opinion) a maximum of 5% drawdown at ANY time, whether that be daily, weekly or monthly.

'A bit every month' is boring but will double your account every 12 to 18 months.

Wait for the trade to come to you... be patient.
RollingStones74 (RollingStones74)
Dec 12 2012 at 10:43
76个发言
pt49 posted:
There's nothing 'safe' about using a 20-25% drawdown to make 10-15% profit a month.


Actually in this case it's not a profit at all, if you already have lost 25% of your money.
But in general I totally agree with you, man.

If you want to end up with a nonaverage net worth, a “learn from someone else” attitude is paramount. Putting your ego aside and admitting that you don’t know it all isn’t easy, but it is the mindset of true winner ----Paul Tudor Jones.
TheLastBear
Dec 23 2012 at 17:27
186个发言
RollingStones74 posted:
pt49 posted:
There's nothing 'safe' about using a 20-25% drawdown to make 10-15% profit a month.


Actually in this case it's not a profit at all, if you already have lost 25% of your money.
But in general I totally agree with you, man.


In general you should get what you pay for.

Pax puts the X in Forex.
supertrader91
Jan 06 2013 at 02:40
82个发言
Hi there geoffrey,

Track my account for some months and let me know what you think 😄

https://www.myfxbook.com/members/supertrader91/superb/450775

If you work hard consistently eventually you will get it.
europips
Jan 07 2013 at 07:22
1个发言
Coincidentally I found this thread and I would like to comment that systems with very little drawdown, must necessarily give a low profit.

Humbly @europips my system (now stopped for technical reasons in myfxbook), actually works with a low profit margin, but stable, with an average of 3.5% drawdown.
In last December obtained a 4% profit.

Systems with very low dd exists, but certainly not with a spectacular profit. So it's hard to find them in places where the only highlights, are the spectacular results.

The problem I have now is like selling my system, because it is clear that with a 4% profit per month, I can not offer it to everyone.

https://www.myfxbook.com/members/europips/europips/416761

I accept suggestions.

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