Forex managed account business plan

[Bamdell Bamfex]

Can anyone give me sample of forex managed account business plan? I need it for a guild to write my own. Thanks

 

[Pharaoh]

There's more than one way to managed someone else's money. Instead of just copying another business plan, why not first start by decided exactly how you wish to conduct your business.

One important point. Even though you can warn people 10,000 times not to invest money that they cannot afford to lose, many investors will put far too much into a managed account. Even those who don't over-fill the account can suffer sudden financial reversals in other areas of their lives. Having the ability to control a large percentage of another person's assets is an huge responsibility. Treating that responsibility lightly is the first step to becoming an unspeakably evil monster who can callously ruin the lives of people who placed their trust in you. Always keep the depth of your responsibility in mind.

So, before even thinking about a business plan, you need a trading plan with ironclad risk management rules. Do you have this yet?

 

[Bamdell Bamfex]

Yes, i have a trading plan, my trading impress one of my friends and he is interested to be my partner. he is the one asking me to bring business plan

 

[Pharaoh]

Let's check those risk management rules first.

In a worst case scenario (you've opened the maximum trading volume called for in your trading plan, then your computer catches fire just before the market goes 5000 pips against all open positions), what percent of the account would be lost?

 

[Logan Powell]

There's more than one way to managed someone else's money. Instead of just copying another business plan, why not first start by decided exactly how you wish to conduct your business.

One important point. Even though you can warn people 10,000 times not to invest money that they cannot afford to lose, many investors will put far too much into a managed account. Even those who don't over-fill the account can suffer sudden financial reversals in other areas of their lives. Having the ability to control a large percentage of another person's assets is an huge responsibility. Treating that responsibility lightly is the first step to becoming an unspeakably evil monster who can callously ruin the lives of people who placed their trust in you. Always keep the depth of your responsibility in mind.

So, before even thinking about a business plan, you need a trading plan with ironclad risk management rules. Do you have this yet?

Is the ironclad risk management rules are written in some kinda book?
I am using my own trading plan and it works for me.
I would like to know your sources, were do you get your knowledge from.
Also about the subject,
make sure that your system is solid and you have tried your plan for several times, before even suggesting it to someone.

 

[robertrfx]

There's more than one way to managed someone else's money. Instead of just copying another business plan, why not first start by decided exactly how you wish to conduct your business.

One important point. Even though you can warn people 10,000 times not to invest money that they cannot afford to lose, many investors will put far too much into a managed account. Even those who don't over-fill the account can suffer sudden financial reversals in other areas of their lives. Having the ability to control a large percentage of another person's assets is an huge responsibility. Treating that responsibility lightly is the first step to becoming an unspeakably evil monster who can callously ruin the lives of people who placed their trust in you. Always keep the depth of your responsibility in mind.

So, before even thinking about a business plan, you need a trading plan with ironclad risk management rules. Do you have this yet?

Good advice here.

 

[Pharaoh]

Is the ironclad risk management rules are written in some kinda book?

There are books on the subject. There is also more than one way to approach risk management. My take on the concept is here...

https://www.forexpeacearmy.com/fore...2272-how-manage-risk-while-forex-trading.html

I am using my own trading plan and it works for me.

Good. A profitable trading plan that works for you is better than a pile of plans that may work for other people, but not for you.

I would like to know your sources, were do you get your knowledge from.

A combination of painful experience, reading everything I can find on the subject, and having a front row seat at the FPA where I've watched account manager after account manager promise risk management to clients only to break the risk management rules and wipe out accounts.

Also about the subject,
make sure that your system is solid and you have tried your plan for several times, before even suggesting it to someone.

Good advice.

 

[Jerry Lowe]

Thank you for sharing. I like to use 1.5% for the first trade. But my system works in a different way from the usual.

 

[Pharaoh]

1.5% per trade is very reasonable. The other thing you need to take into account is how many trades you might have open at a time, especially on correlated pairs.

 

[FXWarriory]

It depends on the pair/s traded. The less the better to control money management. Some pairs can be used higher risks on than others, as much as you understand few pairs(1-3) try to stick to it and learn how it moves more and more again...only until then you can expand your compass.