Getting caught on the wrong side of the trend

I am in the Managed Account and I specifically did this for two reasons, one of which is that I am not always in a position to place trades, and the second that I expected the Managed Account to be more conservatively traded since it had a much lower % profit than the signals account. This unfortunately does not seem to be the case, at least not at present.

As to Mark not wanting to take losses, there were 2 losing trades closed in December. Why the other 2 losing trades were not closed is a mystery to me.

Mark did something which is potentially very dangerous. He placed trades which were counter to a very strong trend. While it is possible to profit from this type of trade, if you end up on the wrong side of the trend, you have only 3 choices: close the trade at a loss, hold onto the trade until (hopefully) the trend turns around, or hedge the position. Right how he is holding onto the 2 positions and there is a possible light at the end of the tunnel since cable may have topped out and, with luck the trade may end up being closed with a profit. On the other hand GBP/JPY, even if it has topped out and is turning around, may not retrace all the way back to the entry position, at least no time soon–and that trade is costing daily since it is in the wrong direction for interest.

Hopefully, when I am better situated and am able to offer my own system on Collective2, I will NEVER make the same mistake. As a matter of fact, I am currently building safeguards into my system so that it can never happen.

Thanks for sharing this. Managed accounts are promoted as mutual funds for futures or forex traders. The central concept of the managed account is to have a talented manager make the investment decisions on behalf of the clients. Theoretically the manager shares in the profits and everybody wins. This looks good on paper but evaluating performance can be a formidable task, especially with managed accounts.

The key problem is that with managed accounts, every client opens an independent account that is individually traded. The logistics of trading several different accounts can be a challenge; tracking the performance of numerous accounts can be a nightmare. The manager often makes mistakes in clients accounts when he fails to individually track the performance of each client account.

Depending on performance certain accounts should not add on new positions or should reduce current losing open positions to within agreed upon statistical boundaries of risk or exit those losing positions completely. Accounts may even have to be closed and remaining funds returned to the investor immediately once statistical boundaries of risk stipulated in the contractual agreement are exceeded.

It is good that you are developing your own system You could still subscribe to other systems/methods and use it as a guide for trading your own system till it becomes mature. Typically it takes several years to develop a proven, robust system.


I think the managed account has larger profits than the signals account.

C2 signals:

According to the equity curve, Hawk-fx equity increased from ~343k to 1,077k in the period Jan '06 - Nov '06. This is ~214%.

Managed account performance:

If you compound the monthly profits (as reported by the vendor) in the managed account over the same period, you obtain ~550%.

Seems to me that the greed factor has a more prominent role in the managed account than in the system at C2. But, fortunately for subscribers, some of those managed account holders also subscribe at C2 and so were able to leave reviews.