What is a Managed Forex Account?
A Professionally Managed Forex Account is a discretionary account where you give permission to a Commodity Trading Advisor (CTA) to make all trading decisions on your behalf through a revocable power of attorney or a third party trading authorization.
A managed forex account allows an investor to have their funds traded professionally by an experienced trader or automated system via a limited power of attorney agreement. The manager cannot deposit or withdraw funds from your account without the proper authorisation to do so, and you retain full access and control over your account at all times. A managed forex account enables the manager to trade your account on your behalf without having to transfer the funds into his account.
There is no method of forex trading that doesn't involve risk. The same leverage and price movements that can produce trading profits can produce trading losses. Indeed, any loss that can occur when an individual directs his own account also can occur in a professionally managed forex account.
Prolific Investments Limited recently introduced the Prolific Investments Limited Managed Account Program (PILMAP)
The Prolific Investments Limited Managed Account Program (PILMAP) is designed to help investors reach their long-term financial goals in today's volatile markets.
This Program accommodates the needs of institutional and individual investors interested in allocating a portion of their risk capital to the Foreign Exchange (Forex) market.
Established in 2008, the PILMAP focuses solely on spot trading in the Forex market. Only the most liquid G7 currencies are traded - including the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, New Zealand Dollar, and Australian Dollar.
We currently offer two types of Forex Managed Account Program (FMAP) the Prolific Conservative Forex Managed Account Program (PCFMAP) and the Prolific Aggressive Forex Managed Account Program (PAFMAP)
Prolific Conservative Forex Managed Account Program (PCFMAP)
Prolific Conservative Forex Managed Account Program (PCFMAP) utilizes lower leverage (100:1) and smaller contract size than the Prolific Aggressive Forex Managed Account Program (PAFMAP).
The trading technique for this program includes: Trend Following, Breakout Trading, Range Trading, Momentum Trading and Dynamic Carry.
The majority of the trades generated by this program uses longer -term time frame. This is a Low Frequency Trading Program (LFTP).
Low Frequency Trading Program (LFTP) means that the number of trades per month range from 5 to 20
The amount of an account's net assets committed to margin in this program will vary as a result of market volatility, among other reasons. On average, 3% to 40% of net assets of an account will be committed to margin.
Percent allocation is the method used to determine the allocation of trades among customer accounts.
Percent allocation refers to the percent of equity that a sub-account holds relative to the whole portfolio. In percent allocation mode, a sub-account with an equity balance of $20,000 would receive 20% of all master account trades if the portfolio equity of all sub-accounts were $100,000.
The minimum initial account requires a deposit of $3000.00.
The Advisor may, in its discretion, waive or change this minimum investment requirement for any one client and without notice to other clients.
Prolific Aggressive Forex Managed Account Program (PAFMAP)
Prolific Aggressive Forex Managed Account Program (PAFMAP) utilizes a higher degree of leverage (400:1) with five (5) different trading techniques: Trend Following, Breakout Trading, Range Trading, Momentum Trading and Dynamic Carry.
The majority of the trades generated by this program uses short-term time frame. This is a High Frequency Trading Program (HFTP).
High Frequency Trading Program (HFTP) means that the number of trades per month range from 20 to 50.
The amount of an account's net assets committed to margin in this program will vary as a result of market volatility, among other reasons. On average, 10% to 20% of net assets of an account will be committed to margin.
Percent allocation is the method used to determine the allocation of trades among customer accounts.
Percent allocation refers to the percent of equity that a sub-account holds relative to the whole portfolio. In percent allocation mode, a sub-account with an equity balance of $20,000 would receive 20% of all master account trades if the portfolio equity of all sub-accounts were $100,000.
The minimum initial account requires a deposit of $25,000.00
The Advisor may, in its discretion, waive or change this minimum investment requirement for any one client and without notice to other clients.
The responsibility for profits subject to taxes and other accounting issues lies with the Clients. Prolific Investment Limited has general familiarity with these matters but does not render legal or tax counsel.
There is no express or implied assurance of profit guarantee against loss with regard to management of Clients' funds. All interested Clients should carefully review the Disclosure Document to include the Risk Disclosure to consider potential risk/reward factors and to clarify any questions before opening an account.
Each Client will be required to execute a MANAGED Account AGREEMENT AND Acknowledgements of Receipt of Disclosure Document as well as various new account forms, Limited Power of Attorney, risk disclosure documents and forms required by our broker, the clearing institution for Clients' funds.
This information is not intended as personalized investment advice and does not constitute a recommendation. It is not an offer or solicitation of any offer to purchase or sell any financial instrument.
THE RISK OF LOSS IN FOREX TRADING CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD ALSO BE AWARE OF THE FOLLOWING:
FOREX TRANSACTIONS ARE NOT TRADED ON AN EXCHANGE, AND THOSE FUNDS DEPOSITED WITH THE COUNTERPARTY FOR FOREX TRANSACTIONS MAY NOT RECEIVE THE SAME PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGE-TRADED FUTURES AND OPTIONS CONTRACTS. IF THE COUNTERPARTY BECOMES INSOLVENT AND YOU HAVE A CLAIM FOR AMOUNTS DEPOSITED OR PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY, YOUR CLAIM MAY NOT RECEIVE A PRIORITY. WITHOUT A PRIORITY, YOU ARE A GENERAL CREDITOR AND YOUR CLAIM WILL BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS ARE PAID. EVEN CUSTOMER FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM ITS OWN OPERATING FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF OTHER GENERAL AND PRIORITY CREDITORS.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN FOREX TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
MANAGED ACCOUNTS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES AND THE ACCOUNT MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETING OR EXHAUSTING ITS ASSETS.