Thread: Managed Forex accounts-good results.

Originally Posted by davek

Scotty,

How will I know if the site is working or not to accept new sign ups? Also, can you shed some light on the difference between the $10,000 account and the $1,000 account? Thanks in advance.

Davek

Hi davek,

All of the current members will receive an email letting us know when the site is up and running. I will be posting that information in this thread as soon as I receive word but if you prefer, I can also keep you updated via email ( just pm me your address).

In my opinion the differences between the two accounts have everything to do with access and diversity.

For instance, MB Trading does not accept clients from certain parts of Canada ( I happen to live in one of the "restricted provinces" ) so up until now my only option was to use the Interbankfx platform for my trading. This has worked out very well and I am extremely pleased with the performance so far, but my fate really is in the hands of one trader and one trading style.

We all know that diversification is one of the main components of risk management and the Infinity Fund ( with the $1,000 minimum ) is the vehicle that will provide that diversification as the funds in the pool will be traded by all four traders ( more will be added to the mix as the fund continues to grow ).

If I simply wanted to open an account in my own name and have it traded by all four parties, I would personally have to come up with the minimum requirements at each broker...$10,000 for IBFX, $10,000 for MB Trading and $500,000 for each of the Swiss platforms. By placing my money within the Infinity Fund, I can achieve this same level of diversification for as little as a $1,000 outlay.

So basically the $10,000 accounts give you access to just one of the traders while the Infinity Fund gives you access to all of them for a tenth of the exposure. If a person is comfortable with a particular trader's style and wants to use them exclusively, then they are certainly welcome to open an account directly provided they meet the $10,000 minimum. In my opinion however, it's never a bad idea to hedge your position and spread the risk.

Hope that helps,

scotty

That's probably why Infinity Fund is a "hedge" fund.

Why has there been no news from the Infinity Group ?

Please help.

so can new people join right now as members?

Originally Posted by p0op3y

so can new people join right now as members?

Hi p0op3y,

Yes new people can still join but only as an agent at this point.

It will be at least a couple of months before "investor only" accounts are accepted as they want to make sure that their agents first have some personal experience with the service before they even consider approaching prospective clients.

I've been with these guys for well over a year now and the one thing I've come to realize is that they don't rush anything. While it's sometimes frustrating just sitting on my hands and waiting, I have seen the results of this methodical approach in the past and in the end it's worth waiting for.

So basically, agents can still join ( albeit manually ) although we can't yet fund our accounts. Investors interested only in having a managed account will have to wait at least another 2 months for the opportunity to join.

Take care,

scotty

Scotty,

I sent you a PM to add me to your email list regarding Infinity Trading Group and other programs worthy of joining.

My email: [email protected]


Thank You,

Derek Altoun

Scotty,
I have been now with them for a couple of months and have two(2) accounts. Day and longterm, beside being an agent in waiting.
But I cannot say I'm very happy (impressed) with the trading results sofar.
Especially daytrading
Regards,
pz

Originally Posted by bruiser

Scotty,
I have been now with them for a couple of months and have two(2) accounts. Day and longterm, beside being an agent in waiting.
But I cannot say I'm very happy (impressed) with the trading results sofar.
Especially daytrading
Regards,
pz

To everyone that sent me a pm, my apologies for the late responses. I was away and have just logged in today for the first time in about a week.

Bruiser, I hear what you're saying. I only have an account at IBFX so I can't really comment on the MB platform, but in the week that I've been gone, my account went from from a nice positive position to now floating in the negative.

This may sound a little strange but I'm actually glad to be going through this. Dale ( the trader on IBFX ) has stated that while these particular drawdowns occur frequently, they always come back to positive eventually. It may take a matter of weeks for that to happen, but in the meantime the portfolio is positioned to make about 4% monthly just off the SWP profits.

I see this as a good test of his trading philosophy which in my mind makes sense because he is simply playing off the correlation between two currencies. In a perfect world, when the GBP/USD decreases the USD/CHF should increase.

What happened in the current trade is that the GBP/USD dropped drastically and the USD/CHF went sideways and ultimately decreased when theoretically it should have gone up. The correlation between these two pairs are now significantly out of whack and according to Dale's theory, they will eventually come back into line which will bring the positions back into profit.

If he does indeed "wait out" this drawdown and closes these trades in profit then it will solidify the safety of his trading style in my mind. It's one thing to see it on paper and understand it conceptually but it's another thing to see it play out with my own money.

He is staying disciplined in his approach because he has been in this exact situation in the past and will be again in the future. Here's a quote from his weekly trading report... "We have had these kind of draw downs before
and yet every time - let me emphasize EVERY TIME!!!, the pairs have come back to where they are in balance or in a positive (profit taking) relationship. This could be days, weeks or longer, but it always happens. In the mean time we will collect Interest (SWAP) "...

As an agent and someone who will eventually be taking this to clients, it is helpful to be going through this. When I explain to people that these markets are volatile, I will actually have some numbers to go along with it. Although I believe that over the long term this account will produce significant returns, I want to make sure that prospective clients understand what a drawdown is.

This is also why I plan to tell people only to check their account every few months. If anyone becomes emotionally attached to the movements in their portfolio, the term "peaks and valleys" will be an understatement.

There are WAY too many ups and downs in this market for those types of people and they will either be living in ecstasy or agony depending on the day lol. The reason that 95% of people fail in this market is because we are too emotionally invested ( myself included ) to stick to a disciplined approach. The decisions are instead made out of fear or greed which are always counter productive.

So while I don't like seeing my account floating negative, I'm willing to give the trader whatever time is necessary to work through this drawdown. I trust he knows what he's doing and if he closes out these positions in profit ( which he's confident he'll do ), then we can have confidence during any future drawdowns that the "losses" are only temporary. That alone will make this experience worth it in my opinion.

Take care,

scotty

Scotty,
Thanks for that imput
I'm feeling better
pz

Well, they finally blew up. The trader wiped out my IBFX account from $500 all the way down to $20. Talk about poor money management!

That's what happens when the trader refuses to accept the fact that he/she made a mistake. The just keep sitting on the trade thinking, oh it will turn around, tomorrow will be better. All the while, the ship is sinking.

Anyway, I'm done with this one. Think I will stick with trading my account on my own. My 3 - 6% per month might be puney, but at least it is better than what my bank pays or losing everything like these guys did.

Does anyone know what the process is to revoke the Limited Power of Attorney for the trader? That's the one thing I am unsure of, but I want to keep his hands out of the cookie jar, especially once I refund my account for personal use.

~Geo