Managed accounts at IRONFX
Several people have asked me to give an opinion on the managed accounts available at IronFX and to join them. For the sake of simplicity and instead of further correspondence, I would like to share with you my personal opinion about them.
Two types of managed accounts are available there. One of them is managed by an unknown Hungarian firm, this can be opened with $ 5,000, while the other is managed by Heares, an American company. The latter can be opened with $ 10,000.
One of my favorite forms of investment is the managed account, so I examine all these opportunities and if I find them good, I try them out. So, I set up a system of conditions based on the experiences gathered so far, to avoid losing my money on a bad investment again ( How to choose a managed account)
The first and most important condition is a live account statement certified by a third party, with a list of transactions. It is absent in the case of the Hungarian account manager, so I cannot deal with it further.
However, the myfxbook statement of the Heares account is available. It is true that it is not certified, but still better than nothing. If we look at it more closely, we can see that the biggest drawdown was 29.35% so far (I note that I think it is not a drawdown, but floating, because no decline can be seen on the chart, just floating positions). In contrast, the average monthly yield is 3.78%. This means that there have been (and will surely be) days when a $ 10,000 investment was worth only approx. $ 7,000. Those who can bear this, might be satisfied with this account. Unfortunately, it is too much for me. I can accept a drawdown or floating maximum in the amount of the monthly return.
The chart rises nicely anyway without setbacks, suggesting that they work with a grid strategy. Looking at the list of trades, this is proven. For those who do not know what that means, in short: they do not use stoploss, but they try to achieve a positive balance of the group of open positions with opening more and more anti-trend positions. This means a problem when the wrong-way exchange rate movement does not stop, the free margin devoted to opening new positions and the account may run out. (ie. the capital protection activates at -30% and a further nine months are needed for our investment to be at zero, in case the protection does not activate again.)
These show that the managed accounts, according to my system of conditions, do not reach the level of security that is needed for me to trust them with my money. Of course, I respect if someone has a higher loss-absorbing ability.
How to choose the best account manager company?
The secrets of consciuos choice of account managers, some facts that they don't advertise