The Trouble With Forex Track Records

The trouble with Forex track records is they are challenging to verify.  One easy way to confirm a track record is by giving it a “common sense” audit.  Ask yourself these two simple questions:

1. Does the track record deviate from the average track record of other well-established funds?

2. Is the record too consistent over time relative to other programs whose records are verified and audited?

If the manager of a Forex fund or managed account program states  “my program is up ++20% per month for the last 12 months!”; you can be almost 100% sure that the manager is lying, or he has only a few hundred dollars under management, or it is a proprietary trading operation that does not need the public’s investment dollar.