The trouble with Forex track records is that 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 Forex 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.