The stock market has been volatile, and a large number of investors are looking for ways to move out of equities because they cannot take the ups and downs. It isn’t easy to mitigate the volatility, but there is a way to lower the overall beta of a portfolio by adding alternative asset classes such as currencies.
An investment in the foreign exchange market can help individual and institutional investors to truly diversify their portfolio and protect themselves against currency devaluation, inflation, and bank insolvency and bankruptcy.Because markets are often driven by human emotion and unforeseen events, it is impossible to predict future prices. Consequently it is important to have a truly diversified portfolio of investment strategies. The ability to profit without regard to its direction is a priceless advantage over buying stocks. Investors should be willing to sacrifice some of the upside potential of a pure equity portfolio in order to preserve capital in times of a declining stock market. This preservation can be done through alternative investments such as futures and Forex trading.
Furthermore, currency investments can function as a hedge against the continuous risk that is present in running any business and especially in today’s global economies. While currency trading is a far cry from investing, adding a foreign exchange component to a portfolio by investing in foreign currency trading might be something to consider in today’s world financial environment.
Due to the nature of the currency markets, it is also important that traders diversify within their trading accounts. The keys to diversification in Forex is not necessarily buying the Euro and selling the Swiss Franc. True diversification can be achieved through the use of various trading strategies and talents. In other words, even individual traders should look to have a portion of their trading account managed by professional trade teams. The purpose of this is not to say that professionals will ultimately always have better results than you, but is simply for the purpose of diversification. Regardless of skill all traders will go through periods of winning and losing trades, thus adding a Managed Account decreases some of the volatility within a trading portfolio.
Like the old saying goes, investors should “Never put all our eggs in one basket.” If you are an experienced investor looking for opportunities while trying to protect you wealth as well, then you need to consider the benefit of diversifying your investment portfolio since diversification spread risks of individual underlying assets. Forex Managed Accounts through Paladin Forex will help traders optimize their portfolios.
At Paladin Forex, we make trading simple. We fully manage your account, and in return you pay only 30% of the profits at the end of each month, along with a small annual Management Fee (0.166% per month).
It’s mutually beneficial; you only pay for results and we have incentive to make you money!
It’s your account, your money, and you only pay for results! You have full transparency to view each and every live trade as it happens. And with a very low minimum investment, you can test us out first before making a larger commitment.
Here are some of the key points for you to consider:
High Net Worth Investments Available to the Middle Class
Hedge Funds only allow high net worth investors the availability to invest in such alternative high performing programs. With AutoFX Pro we strive to make alternative high performing investments available to not only the High Net Worth but also the middle class. We aim to build wealth for all.
The 2010 survey shows a substantial rise in activity in traditional foreign exchange markets compared to 2007. Average daily turnover rose to $3.98 trillion in April 2010, an increase of 20% compared to 2007.
Ability to Achieve Profit or Loss in Rising or Declining Markets
Unlike equity and fixed income managers, a Forex Asset Manager employs both long and short positions with equal facility. In Forex trading, there is no difference in profit potential (or loss potential) between a long and short position. Because of this characteristic a Forex portfolio is not ‘biased long’ but able to profit under any market conditions.
Investing in Forex incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investor account values. Leverage is an acceptable and useful tool when used judiciously and with strict risk management techniques. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional “buy and hold” investments.
We have evidence that positive returns can be generated by pursuing a Managed Account with Paladin FX. What is less widely known is that the introduction of Forex in a properly constituted portfolio of other assets can actually reduce the probability and severity of draw downs. This means that many participants in the Forex market trade to hedge exposures rather than to generate investment profit.
Forex trading provides greater leverage than is found in traditional stock trading, which allows traders to control larger positions with smaller amounts of capital. This also allows you to trade the same size positions you might take with a stock broker, while leaving you with more available capital to trade more markets. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.
Reduce Portfolio Risk While Enhancing Returns
When combined with an investor’s existing portfolio of equity and fixed income instruments, the Forex Managed Account Program potentially reduces the volatility and risk of that portfolio with the goal of enhancing long-term returns.
The performance of equity and fixed income investments in one country is often highly correlated with the performance of equity and fixed income investments in other countries. As a result, global portfolios composed solely of equity and fixed income investments lack full diversification, even if they are geographically dispersed. Investing in a Forex managed account gives investors access to markets beyond equity and fixed income investments, providing more complete diversification and a reduction in portfolio risk.
A managed account with AutoFX Pro will give clients the ability to monitor their investment account 24/7. All that is needed is a PC and access to the Internet. Each client has a unique login and user name which will give them access to view their account being managed live.
FX returns have a very low correlation with bond or equity market returns. Between 1980 and 2006, they had a 5% correlation with equities and a minus 21% correlation with bonds. Equities and bonds, meanwhile, had a 26% correlation rate over this period.
No Independent Market Controllers
The stock market is very susceptible to large buys and sells. On the other hand, Forex is the largest, most liquid market. This makes the likelihood of any one fund, bank or company controlling a particular currency extremely slim. The extreme liquidity of the Forex market is reflective of its many large participants from around the world, including banks, hedge funds, brokerages and governments.
24 Hour Trading
The Forex market is a 24 hour exchange. Our Clearing House is open from 5:00pm EST on Sunday until 5:00pm EST on Friday, with customer service usually available 24/6. That means our Trade Teams are live and functioning while you sleep, during the Asian, European AND U.S. market hours.
As a last note, did you know that when you factor in compounding 6% net per month for 12 months you will officially double your account?
Why do people invest in stocks bonds or mutual funds? Why do they have a stock broker?
The stock broker advises them of what stocks to buy and when to sell them and lock in their profits or cut their losses.
Why do people invest in mutual funds?
Low cost of entry. Buying a lot of 1 stock is a lot of money and is easier to pool in a mutual fund. To diversify and because they do not have the time knowledge and patience to do it on their own.
Why do clients invest in hedge funds?
Because they are investments that yield above average returns. However not everyday people can invest in them. They must be High net worth investors. And sometimes the minimum investment for those clients is in the millions.
Forex Managed Accounts
Now with Forex Managed Accounts everyday retail clients and investors can take part in these advanced alternative investments that were recently only available to the extremely wealthy and high net worth. At Paladin Forex, we make Forex Managed Accounts available to all types of clients and investors so that capturing the returns of these assets is within everyone’s reach. Now we can all have our own money truly working for ourselves!
FOREX VS. EQUITIES.
If you are interested in trading currencies online, you will find that the Forex market offers several advantages over equities/mutual fund trading.
24-Hour Trading. A true 24-hour market, Forex offers a major advantage over the limited hours of equity trading. Whether it’s 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign currencies. Traders can respond to breaking news immediately and P&L is not affected by after-hours earning reports or analyst conference calls.
Superior Liquidity. Forex boasts a daily trading volume that is over 80x larger than the New York Stock Exchange, so there are always broker/dealers willing to buy or sell currencies. The significant liquidity of this market helps ensure price stability, especially for the major currencies.
Greater Buying Power. The leverage offered by most FX brokers substantially exceeds the common 2:1 margin available in equity trading. At 100:1, traders can post $1000 margin for a $100,000 position, or 1%. While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful moneymaking tool. Rather than merely loading up on risk, as many people incorrectly assume, leverage is essential in the Forex market because the average daily percentage move of a major currency is less than 1% (a stock can easily have a 10% price move on any given day).
Lower Transaction Costs. It is much more cost-efficient to trade Forex in terms of both commissions and transaction fees.
Profit Potential In Both Rising And Falling Markets. In every open FX position, an investor is long in one currency and short the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that profit potential exists in a rising as well as a falling market.
The ability to sell currencies without any limitations is another distinct advantage over equity trading. In the US equity markets, it is much more difficult to establish a short position due to the Zero Uptick rule, which prevents investors from shorting a stock unless the immediately preceding trade was equal to or lower than the price of the short sale.
FOREX VS. FUTURES.
Global foreign exchange is the largest and most active financial market in the world. Forex traders worldwide trade actively around the clock, exchanging close to $4 trillion daily.
As outlined below, the benefits of Forex over currency futures trading are considerable.
More Volume = Better Liquidity. Daily currency futures volume on the CME is just over 2% of the volume seen every day in the Forex markets. Incomparable liquidity is one of the many advantages of Forex trading.
Forex markets offer higher leverage – you are able to use the money more effectively to achieve better returns. With higher leverage comes higher risk.
Forex terminology and prices quotes are easily understood and universally used. Currency futures quotes are inversions of the cash price. For example, if the cash price for USD/CHF is 1.7100/1.7105, the futures equivalent is .5894/ .5897; a methodology followed only in the confines of futures trading.
Forex markets offer tighter spreads. By inverting the futures price to compare it to cash, you can readily see that in the USD/CHF example above, inverting the futures dealing price of .5894 – .5897 results in a cash price of 1.6958 – 1.6966, 8 pips vs. the 2-3 pip spread available in the Forex Market.
Our managed Forex accounts offer investors the following benefits over traditional investments in the equity markets and mutual funds:
Absolute returns in either a rising or declining equity market
Diversification from a traditional equity/bond portfolio
Disciplined, risk controlled trading of liquid assets
Daily reporting, usually online, of account positions
24/7 access to account balance
Immediate access to funds
Ideal for those who are:
In full time employment
Busy somewhere else
Lack confidence in self trading
Struggling with Losses
Cannot stay at the computer all day long
Looking for a Hassle Free Monthly Income
Building up assets for retirement
We would like to introduce you to the concept of managed accounts which is completely different from a fund where you commingle your funds with other investors, a managed account is an account that you open in your own name where you have instant access to your funds without penalty. Your personal account will be electronically connected to our professional trade team’s master account, which allows you to receive duplicate trades automatically. In return for this service you agree to pay a performance fee of 30% of any new profits made.
Learning to trade is a very long hard road and most people are simply not able to do it. This is for multiple reasons, but the main one being the mental stamina required to trade and especially to trade a large account!Fear & greed kicks in and people find it extremely hard to follow their trading plan and so they end up either cutting their trades too early or exiting at a loss way before their stop loss is even hit!
Because we identified this need, we then set out to find a valid solution to this where you still retain full control of your own account (in your own name), while still allowing professional traders to trade your account but without allowing them access to withdraw any of your funds giving you maximum security.
Therefore we are very proud to offer you a fully managed account service, where all you need to do is open an account and let us do the rest.
Safety of Funds
We believe managers’ and clients’ interests must be aligned. Paladin Forex structures its programs on a performance-based fee model. If you do well, we do well. If you don’t, we don’t. If there is a negative return for the month, it is carried forward and must first be recouped, before performance fees can again be earned.
Our programs are compensated by performance fees, not by transactions made.
Our programs accept individual client accounts. We do not have a pool of funds.
Client funds are sent to an established Forex Clearing House, not to Paladin Forex or the trader. You are the only person on the planet whom this broker allows to deposit or withdraw the money from this account. This is YOUR money and YOUR account.
Client has 24/7 access to view the account in live action and its history via investor viewing privileges.
Our traders are able to perform trading operations with the money under your limited power of attorney (LPOA). They cannot withdraw this money and buy a Ferrari or a private island.
Monthly returns will be based on realized positions at the end of each month. Any fees on new profits (above water mark) are only subject to realized gains, which means no fees will be applied to floating positions.
Then how we get paid?
You don’t pay us directly and you will not be invoiced for our fee. Based on the performance structure agreed between Paladin Forex and you, the broker will charge the performance fee from your account and credit it to us at the end of each month. As a result, when you withdraw funds to your Bank account, you withdraw only your profits and not the performance fee paid to us.
Do you provide any guarantee of the return?
We don’t provide any guarantee or assurances for returns. Forex trading is a risky investment and is not suitable for everybody. You should gauge your investment goals before investing in any kind of speculative trading. Always do your due diligence before investing money anywhere. We invite you to view our fund performance and ask us any questions you may have prior to opening your account.
Do I have to open my own brokerage account in order to participate?
Yes, you must first open an account at our approved Clearing House and FCM, ILQ. All the money is held in your name in your personal trading account at ILQ and held in top-tier international banks.
Can I choose my own broker and ask you to trade it?
No you can’t. We operate with some of most reputable brokers and Clearing Houses in the industry and carry out due diligence before suggesting it to our customers. The brokers that we choose are well established in the industry and have a proven history of handling clients with respect and providing an equally competitive trading atmosphere for our clients’ funds.
If you have never traded before, the Forex market can be quite confusing and overwhelming. Through a partnership with one of the best Forex Training Systems ever created, we have taken proven concepts and built a systematic approach to understanding Forex. Whether you are moving to Forex from trading Stocks, Futures or Commodities or are brand new to trading altogether, our goal is to make you a consistently profitable trader in the Forex market.
TRADE LIVE WITH A PROFESSIONAL!
Trade live with a Professional Trader three or more times a week! These live sessions are one of the many reasons our members have chosen to sign up for training sessions. Night and morning sessions are available and if important events are scheduled we will often schedule a special extra webinar to cover it. You will gain insight into the strategies and the nuances of trading which many other Forex training systems never cover. These interactive sessions are an invaluable tool to accelerate your understanding of Forex.
LIVE TRAINING SESSIONS
Monday, Tuesday and Thursday nights we offer live training sessions. These sessions cover a wide variety of Forex topics such as systems, charting, strategies in risk management, and the psychological aspects of mastering Forex. These individual lessons are designed for different levels of traders but everyone is encouraged to attend and learn.
GET DAILY TRADING NUMBERS!
Each trading day the Buy and Sell numbers with targets for the EUR/USD and the GBP/USD (two of the most traded pairs) are published for members. These are the numbers that traders personally use to trade on their accounts. During the Live Trading webinars these numbers are watched closely and you can see when they are hit.
If you have never traded Forex before, the Daily Numbers are a great way to get your feet wet. These numbers use standard support and resistance which is a cornerstone of technical trading. Along with the Daily Numbers you also get a commentary on the current market conditions, cautions, technical lines, and upcoming fundamental events (reports and news).
GET ACCESS TO THE FX ACADEMY!
Our trainers (and traders) have taken several years of successful trading and compiled a very comprehensive and user friendly lesson plan to get you started on your Forex education. The 4X Institute is split into 4 levels and will take you from basic terminology to advanced concepts and strategies. This curriculum is built to pair with our weekly webinar series. All members are encouraged to go through all the lessons and watch every webinar (live or archived) no matter what level of trader they are.
With 50+ lessons and more being added each month, the 4X Institute is a great place learn Forex trading and increase your skills.
Here is an example of the lessons you will see:
4X 101 – What is Foreign Currency Exchange? (FX or Forex)
4X 109 – The 5 Levels of Trading
4X 204 – Common Chart Indicators
4X 209 – Understanding Cash Management
4X 302 – Setting up your Trading Day
4X 307 – Identifying the Trend
4X 403 – Eight Habits of Successful Traders
4X 404 – Fearless Trading
When you are starting your trading career from scratch you have a lot to learn, and you will have questions, LOTS of them. This is why Thursdays are just for the beginners. The Foundations In Forex webinars are built specifically for newbies and beginners. No concept is too simple, no terminology goes unexplained. Everything from “what is a pip?” to setting up your charts on your computer.
These lessons are usually a bit shorter than normal webinars in order to allow plenty of time for questions and answers afterward. We know you have a lot to learn and your trainer will take the time to answer whatever questions you may have on these webinars each week. All of these webinars are also recorded and archived including the questions and answers so feel free to watch them a few times until the concepts are cemented in your mind. We don’t believe that there are such things as stupid questions, but if you do don’t worry! We only use first names when answering questions!