The Numbers Fund

[Marcelo Rosa]

There is another company in Dubai that's been 18 years in the market, that works with a UK regulated broker and still they managed to lose all clients money ($20K) so as I can't even open the website of Number fund, there is not enough transparency for me to consider invest. I can open only through my mobile and this doesn't bring safety at all.

 

[Lourka]

I'm going to break with my usual tradition and say one good thing. That brochure does show the money is with a well regulated bank/broker. This is not a guarantee that all is perfect, but at least there shouldn't be any major worries of the broker doing anything wrong.

No fees other than profit share is good, BUT, the part about profits is missing the magic phrase "High Water Mark". So, lets say they lose 10% the first month and then make it back the next month. With high water mark profit sharing, you owe them nothing. Without it, you pay a fee of the "profits" which are really recoveries of your losses. It is possible that this is an oversight by the person who designed the brochure, but it' a big one. NEVER put money on profit share unless the profit share contract (and LPOA with the broker) clearly specify that it's high water mark.

Make certain that if you open an account with the broker that it's NOT under the management company's IB. They are entitled to a share of profits. If they are also IBs, that means they get a cut of spread/commissions on each trade, winning or losing. That's an incentive to churn an account.

Results page mixes backtests with forward tests. Backtests are ONLY useful in telling if a trading plan is worth forward testing. Demand detailed trading records from a live forward test on the broker they use.

Registered office in the Seychelles. That does not inspire confidence.

but there performance for 2016 is not that much encouraging with 2.72 total return for the previous four months, any advice you could offer Pharaoh please?

 

[Pharaoh]

That's not a return which will make headlines. On the other hand, its not a loss.

With ANY managed account service (or ANY trading system you chose to use), set a maximum drawdown you are willing to accept before bailing out. Before beginning, observe or test the system and have a minimum profit you find acceptable before putting any significant sum of money on the line with it.