FXTM Invest is an innovative solution by FXTM whereby investors can connect with Strategy Managers and follow their strategies. It is a stage of mutual growth and opportunity and offers numerous benefits for both the Strategy Manager and Investor.
Any client who invests funds with a Strategy Manager with the goal of diversifying his portfolio, spreading risk exposure and ultimately advancing his financial opportunities.
The owner of a Strategy Manager’s Account. A skillful trader willing to share his/her strategy with other Investors for a percentage fee of the profits.
When an Investor pauses his Investment Account by clicking on the “Pause” button. If the Account is paused, all positions in the Account are closed.
The Investor can resume all trading activity in his Investment Account by clicking on the “Resume” button. All positions opened by the Strategy Manager, will be opened at the prevailing market prices and will appear in the Investor’s Account.
Please Note: in case the margin level of your Strategy Manager is less than 100%, the Investment Account will not resume.
The strategy fee represents a percentage of the profits that will be rewarded to the Strategy Manager for his/her positive performance. This is paid 30 days from the day of initial deposit and in case of withdrawal or closure of the Strategy Manager's Account, the higher water mark rule applies. Example: If the Investor deposits an amount of $10,000 and after 30 days the Strategy Manager has returned a 50% profit, the investor’s new equity will be $14,000 assuming the Strategy Manager’s fee is equal to 20% of the profits. The Strategy Manager will receive $1,000 in his wallet (20% of $5,000). In case the Strategy Manager’s account incurs losses in the first month, and the Investor’s equity reaches $9,000 then the Strategy Manager will receive no compensation. If the second month proves more favourable for the Strategy Manager and the account shows profit and the Investor’s equity grows to $11000, the Investor will be required to pay 20% of $1000 ($200) to the Strategy Manager, since $1000 is the real profit for the Investor according to his initial deposit ($10000).
It’s the limit the Investor sets to his investment. If his/her capital reaches this level then all the positions will be closed or he/she will receive a notification to do so himself/herself according to his preferences.
The reoccurring monthly interval that starts on the day of the Investor’s initial deposit and concludes after a 30 day period. When the payout interval is reached, the Strategy Manager’s fee is paid automatically if the Investor’s account is found to be profitable compared to the previous interval.
The date when the Payout Interval is reached and theStrategy Manager’s fee is paid to his/her account.
The Safety Mode can be a helpful tool for the Investor to protect his/her funds. However, using our Safety Mode also has its drawbacks, as it can limit potential profits as well as losses. By enabling Safety Mode, the Investor reduces his/her investment by approximately half as much. Example: The Investor deposits $10,000 and the strategy suffers a 20% loss. Without the use of Safety Mode, the investor stands to lose $2,000 (20% of $10,000). With Safety Mode enabled though, the loss would be $1,000 (0.5 * $2,000). By enabling Safety Mode however, potential profits will equally decrease.
Your Investment’s Coefficient indicates the amount of trading activity in your account compared to the Strategy Manager’s account. When Safety Mode is enabled, the coefficient in your Investment Account cannot exceed a factor of 0.5 and therefore you will adopt approximately half the trading activity compared to the Strategy Manager’s account and subsequently half the risks and profits. When Safety Mode is disabled, the coefficient in your Investment Account cannot exceed a factor of 1 and you will be assuming the same risks and opportunities as the Strategy Manager. Please note that all values are approximate and depending on the current situation, your Investment Coefficient factor can be less than the one you have chosen. Example: Your Strategy Manager buys or sells an N volume of a certain instrument. Your account will reflect this order with “Coefficient * N”
The Ranking of a Strategy Manager is calculated based on his or her overall returns minus the Strategy Manager’s Fee, while taking into consideration the following:
The Risk Level. In case two Strategy Managers have the same return, the Strategy Manager who has lower risk will have a higher ranking.
Drawdown percentage. The lower the Drawdown, the higher the ranking.
Days Open. The more Days Traded, the higher the ranking.
Monthly Return. The last 30 days of activity have less influence on the ranking than previous days/months.
Popularity of a Strategy Manager is determined by the number of investors and the amount of funds currently invested in his/her account.
Indicates the level of risk associated with each Strategy Manager’s Account, with the lowest being “conservative” and the highest “aggressive”.
An average of all the daily returns, positive and negative, for a specific period of time. The lower the volatility, the more conservative the Manager’s strategy is.
Estimates the average profit percentage for the total winning days of the Strategy Manager’s Account.
Estimates the average loss percentage for the total losing days of the Strategy Manager’s Account.
Estimates the average percentage of profit/loss of the Strategy Manager’s Account.
A good estimate of a Strategy Manager’s trading performance according to the risks taken. Strategy Manager accounts with higher Sharpe ratio enjoy better performance with less risk exposure.
Illustrates the effectiveness of the Manager’s strategy after the Maximum Drawdown has taken place. If the Recovery Factor is in the negatives, it means the Manager’s strategy hasn’t recovered from the Maximum Drawdown yet.
The maximum loss percentage a portfolio would have incurred by investing in a Strategy Manager. It is calculated by the difference between the peak and trough values of a strategy for a specific period of time.