Choose a Managed Account Program that fits your Risk Profile
Identify your acceptable level of risk that you are prepared and able to accept. What type of investor are you? Are you an adventurous or dynamic (high) risk investor, or are you a medium-risk investor? Or perhaps you are older and looking for a more a conservative, low risk trading fund?
Trading in the FX markets by nature demands a higher risk than traditional investments like stocks, but also offer the potential of out sized returns. When choosing your Managed account, you should consider your risk appetite and target returns. Never invest more than you can afford to lose.
Your risk profile typically depends on a your age, financial goals and the duration you plan on holding your investment. If you are young and retirement is still far away, you may be more aggressive and prefer something like SmartFX Aggressive. Adventurous investors have the advantage of riding out the highs and lows of the market.
If you’re closer to retirement, you might want to look for something more conservative and consistent, you may opt for Smart FX Default. This Managed account will be manually traded with Institutional Smart Money trading strategies, targeting 6 – 10% monthly with 5 % Max Drawdown.
With ATC Brokers, they offer a PAMM Plus Software that allow clients to have the flexibility to adjust their risk settings up to 4X. This way, investors can choose the risk they are willing to take.
For example, if you prefer higher returns and don’t mind a 20% max drawdown, you may select Smart FX and set a multiplier to 4 and have the potential of targeting over 20% monthly.