Judging the Performance of a Forex Managed Account Trader: Is the Track Record the Only Thing that Matters?

Investors should take particular note of the Forex manager record of performance; however, this in itself should not be the only reason for choosing a specific Forex trading advisor.  The disclosure document should spell out the Forex managed account manager market approach and trading style. This information should be carefully reviewed along with the track record when the investor chooses a particular Forex trader.  Strong performance in the short term may be nothing more than good fortune.  Positive performance over a long time., and over many trades, may indicate that the trader’s philosophy and style are more robust than his competitors.  This is especially true if the track record includes periods of bull, bear, and flat trading ranges. It is important to remember that past performance is not necessarily indicative of future results.

A few metrics to take careful note of when reviewing a track record:

  • How long is the track record good fortune or sustainable results?
  • Worst peak to valley drawdown: Could you still make money even if you entered at the worst time?
  • Assets under management: Is the manager trading and an insignificant amount of money, or has his track record proved to be scalable and sustainable?

GET MORE INFORMTATION

Fill out my online form.

Speak Your Mind

*