:: Risk Control Policy ::
Managed account program works with risk control policy. An investor should understand that profit and loss is part of the business. Some times I lose trades and some times I win trades. I try to win more trades as compare to losing trades and this is what make my managed accounts program profitable.
The other side of the coin is that instead of making money it may possible that I may start losing money. So, a risk control policy is required at this point.
100% Per Year program has a 12% draw down risk limit and I already gave the example above.
200% Per Year program has a 24% draw down risk limit and I already gave the example above.
300% Per Year program has a 36% draw down risk limit and I already gave the example above.
Moreover there is a legal signed (limited power of attorney) contract between Trading Agent (me) and Account Holder (client). After that I start managing the client's trading account. With limited power of attorney agreement I can only trade at client's account. I can not deposit and withdraw any amount at client's trading account. |