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Forex Fund Management

Professional forex fund management

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Forex Fund Management

  1. 1. THE FOREX FUND MANAGER Fund Management CONSISTENCY MATTERS WELCOME
  2. 2. FOREX MARKET FOREIGN EXCHANGE MARKET (FOREX, FX or Currency market) LARGEST MARKET IN THE WORLD • Bank and non bank foreign exchange dealers • Foreign exchange brokers • Hedgers, Speculators and arbitragers • Central banks and treasuries • Individuals and firms conducting commercial or investment transactions 1. The interbank or wholesale market 2. Client or retail market Forex market participants
  3. 3. FOREX MARKET 24 Hours MarketDecentralized structure
  4. 4. Highest Turnover per day High Leverage available FOREX MARKET
  5. 5. HOW IT WORKS OR USD EURO POUND YEN Major Currencies Combinations of EURUSD GBPUSD USDJPY
  6. 6. Trading is GAMBLING It is a PROCESS It requires Winning attitude SUCCESS KEY
  7. 7. ACCOUNT BALANCE CURVE New Trader’s actions result Professional trader Profits & Losses are result of trader’s ACTIONS
  8. 8. TRADING IS A BUSINESS Principle 100 Profit 5.00 % Simple Compound Month Principle Profit Total Principle Profit Total 1 100 5 105 100 5 105 2 100 5 110 105 5 110 3 100 5 115 110 6 116 4 100 5 120 116 6 122 5 100 5 125 122 6 128 6 100 5 130 128 6 134 7 100 5 135 134 7 141 8 100 5 140 141 7 148 9 100 5 145 148 7 155 10 100 5 150 155 8 163 11 100 5 155 163 8 171 12 100 5 160 171 9 180 13 100 5 165 180 9 189 14 100 5 170 189 9 198 15 100 5 175 198 10 208 16 100 5 180 208 10 218 17 100 5 185 218 11 229 18 100 5 190 229 11 241 19 100 5 195 241 12 253 20 100 5 200 253 13 265 21 100 5 205 265 13 279 22 100 5 210 279 14 293 23 100 5 215 293 15 307 24 100 5 220 307 15 323 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 1 4 7 10 13 16 19 22 Growth 160 180 323220 100 5 Simple Compound
  9. 9. LOSS RECOVERY Balance Loss % Net Profit % Balance 100 1 99 1.01 100 100 5 95 5.26 100 100 10 90 11.11 100 100 20 80 25.00 100 100 30 70 42.86 100 100 40 60 66.67 100 100 50 50 100.00 100 100 75 25 300.00 100 100 90 10 900.00 100 DRAWDOWN RECOVERY
  10. 10. Capital Risk 2.0 % Risk Reward 1.0 3.0 Losses Wins 70 30 Result Result -140.0 +180.0 Final Result +40.0 % 1:3 RISK REWARD RATIO Price moves UP or DOWN. Its probability. Should not risk all amount in a single trade Divide Trade amount into 50 equal parts 100/50 = 2% Risk per trade Use 1:3 Risk Reward ratio Exit trade at 2% Loss or 6% Profit If balance is 5000 $ * 2 % = 100 $ 1 Lot – 10 pips – 100 $ 2% 6% 100 Trades 5000 $ * 40 % = 2000 $ Profit
  11. 11. Uniform Losses CONTROLLED RISK 20 Trade Sample. Risk fixed Trade # Result 1 3R 2 (1R) 3 (1R) 4 (1R) 5 3R 6 3R 7 (1R) 8 (1R) 9 5R 10 4R 11 2R 12 (1R) 13 (1R) 14 (1R) 15 3R 16 6R 17 (1R) 18 (1R) 19 (1R) 20 4R 33R Profit / 11R Loss = 3R Overall
  12. 12. Balance $ 100 Risk 2.00 % Risk Reward LOSS WIN 1 3 Trade Account Bal Risk Loss New Balance Account Bal Reward Profit New Balance 1 100.00 2% -2.00 98.00 100.00 6% 6.00 106.00 2 98.00 2% -1.96 96.04 106.00 6% 6.36 112.36 3 96.04 2% -1.92 94.12 112.36 6% 6.74 119.10 4 94.12 2% -1.88 92.24 119.10 6% 7.15 126.25 5 92.24 2% -1.84 90.39 126.25 6% 7.57 133.82 6 90.39 2% -1.81 88.58 133.82 6% 8.03 141.85 7 88.58 2% -1.77 86.81 141.85 6% 8.51 150.36 8 86.81 2% -1.74 85.08 150.36 6% 9.02 159.38 9 85.08 2% -1.70 83.37 159.38 6% 9.56 168.95 10 83.37 2% -1.67 81.71 168.95 6% 10.14 179.08 -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 1 2 3 4 5 6 7 8 9 10 S… -4.00 -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 1 2 3 4 5 6 7 8 9 10 S… SERIES OF LOSSES & PROFITS WITH RISK – REWARD %
  13. 13. Balance $ Capital risk % Risk Reward SL pips 100 2.00 1 3 10 Trade Risk % SL pips Lots Balance % Profit Equity Reward 1 2.0 10 0.02 100 2 2 98 -1 2 2.0 10 0.02 98 6 6 104 3 3 2.0 10 0.02 104 2 2 102 -1 4 2.0 10 0.02 102 2 2 100 -1 5 2.0 10 0.02 100 2 2 98 -1 6 2.0 10 0.02 98 6 6 104 3 7 2.0 10 0.02 104 2 2 102 -1 8 2.0 10 0.02 102 6 6 108 3 9 2.0 10 0.02 108 6 6 114 3 10 2.0 10 0.02 114 2 2 112 -1 11 2.0 10 0.02 112 6 7 119 3 12 2.0 10 0.02 119 2 2 116 -1 13 2.0 10 0.02 116 2 2 114 -1 14 2.0 10 0.02 114 6 7 121 3 15 2.0 10 0.02 121 6 7 128 3 16 2.0 10 0.03 128 2 3 125 -1 17 2.0 10 0.03 125 2 3 123 -1 18 2.0 10 0.02 123 6 7 130 3 19 2.0 10 0.03 130 2 3 128 -1 20 2.0 10 0.03 128 6 8 135 3 90 100 110 120 130 140 150 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 COMBINING PROFITS & LOSSES IN TRADING
  14. 14. 0 100 200 300 400 500 600 700 800 900 1000 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 SIMPLE vs COMPOUND RESULT CURVE Simple Compound Account balance after 100 trades
  15. 15. Identify the Trend, Watch for Pullback, Trade the Breakout STRATEGY Trend Pullback Breakout Risk Reward
  16. 16. ENTRY SIGNAL TP SL BUY -1 0 +1 +2 +3 1:3 RISK REWARD IF RED DOT APPEARS ITS BUY SIGNAL
  17. 17. ENTRY SIGNALS IF RED DOT APPEARS ITS BUY SIGNAL 1:3 RISK REWARD TP TP BUY BUY SL SL SL BUY UP TREND TP TP TP BUY SL BUY
  18. 18. DAILY MOVEMENT
  19. 19. TRADING IN MULTIPLE ACCOUNTS
  20. 20. PROFITS DISTRIBUTION IN MAM SYSTEM
  21. 21. No performance fees during these periods HIGH WATER MARK PROFIT FEE SYSTEM Profit Profit
  22. 22. RISK DISCLOSURE HIGH RISK INVESTMENT Trading Forex/CFD & Options on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. All accounts are margin leveraged accounts. Clients must maintain an adequate amount of margin to sustain their positions, if equity levels drops to 50% of used margin, a margin call will occur. It is the investor’s responsibility to maintain a sufficient level of margin.
  23. 23. Thank you.. Contact us Email: kvv1975@gmail.com Skype: fxtein.venkat www.theforexfundmanager.com THE FOREX FUND MANAGER CONSISTENCY MATTERS

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