Professional forex fund management

1. THE FOREX FUND MANAGER
Fund Management
CONSISTENCY MATTERS
WELCOME

2. FOREX MARKET
FOREIGN EXCHANGE MARKET (FOREX, FX or Currency market)
LARGEST MARKET IN THE WORLD
• Bank and non bank foreign exchange dealers
• Foreign exchange brokers
• Hedgers, Speculators and arbitragers
• Central banks and treasuries
• Individuals and firms conducting commercial
or investment transactions
1. The interbank or wholesale market
2. Client or retail market
Forex market participants

3. FOREX MARKET
24 Hours MarketDecentralized structure

4. Highest Turnover per day
High Leverage available
FOREX MARKET

5. HOW IT WORKS
OR
USD EURO POUND YEN
Major Currencies
Combinations of
EURUSD GBPUSD USDJPY

6. Trading is GAMBLING It is a PROCESS
It requires
Winning attitude
SUCCESS KEY

7. ACCOUNT BALANCE CURVE
New Trader’s actions result
Professional trader
Profits & Losses are result of trader’s ACTIONS

8. TRADING IS A BUSINESS
Principle 100 Profit 5.00 %
Simple Compound
Month Principle Profit Total Principle Profit Total
1 100 5 105 100 5 105
2 100 5 110 105 5 110
3 100 5 115 110 6 116
4 100 5 120 116 6 122
5 100 5 125 122 6 128
6 100 5 130 128 6 134
7 100 5 135 134 7 141
8 100 5 140 141 7 148
9 100 5 145 148 7 155
10 100 5 150 155 8 163
11 100 5 155 163 8 171
12 100 5 160 171 9 180
13 100 5 165 180 9 189
14 100 5 170 189 9 198
15 100 5 175 198 10 208
16 100 5 180 208 10 218
17 100 5 185 218 11 229
18 100 5 190 229 11 241
19 100 5 195 241 12 253
20 100 5 200 253 13 265
21 100 5 205 265 13 279
22 100 5 210 279 14 293
23 100 5 215 293 15 307
24 100 5 220 307 15 323
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
1 4 7 10 13 16 19 22
Growth
160 180
323220
100 5
Simple
Compound

9. LOSS RECOVERY
Balance Loss % Net Profit % Balance
100 1 99 1.01 100
100 5 95 5.26 100
100 10 90 11.11 100
100 20 80 25.00 100
100 30 70 42.86 100
100 40 60 66.67 100
100 50 50 100.00 100
100 75 25 300.00 100
100 90 10 900.00 100
DRAWDOWN RECOVERY

10. Capital Risk 2.0 %
Risk Reward
1.0 3.0
Losses Wins
70 30
Result Result
-140.0 +180.0
Final Result
+40.0 %
1:3 RISK REWARD RATIO
Price moves UP or DOWN. Its probability.
Should not risk all amount in a single trade
Divide Trade amount into 50 equal parts
100/50 = 2% Risk per trade
Use 1:3 Risk Reward ratio
Exit trade at 2% Loss or 6% Profit
If balance is 5000 $ * 2 % = 100 $
1 Lot – 10 pips – 100 $ 2%
6%
100 Trades
5000 $ * 40 % = 2000 $ Profit

11. Uniform Losses
CONTROLLED RISK
20 Trade Sample. Risk fixed
Trade # Result
1 3R
2 (1R)
3 (1R)
4 (1R)
5 3R
6 3R
7 (1R)
8 (1R)
9 5R
10 4R
11 2R
12 (1R)
13 (1R)
14 (1R)
15 3R
16 6R
17 (1R)
18 (1R)
19 (1R)
20 4R
33R Profit / 11R Loss = 3R
Overall

12. Balance $ 100 Risk 2.00 % Risk Reward
LOSS WIN 1 3
Trade Account Bal Risk Loss New Balance Account Bal Reward Profit New Balance
1 100.00 2% -2.00 98.00 100.00 6% 6.00 106.00
2 98.00 2% -1.96 96.04 106.00 6% 6.36 112.36
3 96.04 2% -1.92 94.12 112.36 6% 6.74 119.10
4 94.12 2% -1.88 92.24 119.10 6% 7.15 126.25
5 92.24 2% -1.84 90.39 126.25 6% 7.57 133.82
6 90.39 2% -1.81 88.58 133.82 6% 8.03 141.85
7 88.58 2% -1.77 86.81 141.85 6% 8.51 150.36
8 86.81 2% -1.74 85.08 150.36 6% 9.02 159.38
9 85.08 2% -1.70 83.37 159.38 6% 9.56 168.95
10 83.37 2% -1.67 81.71 168.95 6% 10.14 179.08
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
1 2 3 4 5 6 7 8 9 10
S…
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
1 2 3 4 5 6 7 8 9 10
S…
SERIES OF LOSSES & PROFITS WITH RISK – REWARD %

13. Balance $ Capital risk % Risk Reward SL pips
100 2.00 1 3 10
Trade Risk % SL pips Lots Balance % Profit Equity Reward
1 2.0 10 0.02 100 2 2 98 -1
2 2.0 10 0.02 98 6 6 104 3
3 2.0 10 0.02 104 2 2 102 -1
4 2.0 10 0.02 102 2 2 100 -1
5 2.0 10 0.02 100 2 2 98 -1
6 2.0 10 0.02 98 6 6 104 3
7 2.0 10 0.02 104 2 2 102 -1
8 2.0 10 0.02 102 6 6 108 3
9 2.0 10 0.02 108 6 6 114 3
10 2.0 10 0.02 114 2 2 112 -1
11 2.0 10 0.02 112 6 7 119 3
12 2.0 10 0.02 119 2 2 116 -1
13 2.0 10 0.02 116 2 2 114 -1
14 2.0 10 0.02 114 6 7 121 3
15 2.0 10 0.02 121 6 7 128 3
16 2.0 10 0.03 128 2 3 125 -1
17 2.0 10 0.03 125 2 3 123 -1
18 2.0 10 0.02 123 6 7 130 3
19 2.0 10 0.03 130 2 3 128 -1
20 2.0 10 0.03 128 6 8 135 3
90
100
110
120
130
140
150
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
COMBINING PROFITS & LOSSES IN TRADING

14. 0
100
200
300
400
500
600
700
800
900
1000
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96
SIMPLE vs COMPOUND RESULT CURVE
Simple
Compound
Account balance after 100 trades

15. Identify the Trend, Watch for Pullback, Trade the Breakout
STRATEGY
Trend
Pullback
Breakout
Risk
Reward

16. ENTRY SIGNAL
TP
SL
BUY
-1
0
+1
+2
+3
1:3 RISK REWARD
IF RED DOT APPEARS ITS BUY SIGNAL

17. ENTRY SIGNALS
IF RED DOT APPEARS ITS BUY SIGNAL
1:3 RISK REWARD
TP
TP
BUY
BUY
SL
SL
SL
BUY
UP TREND
TP
TP
TP
BUY
SL
BUY

18. DAILY MOVEMENT

19. TRADING IN MULTIPLE ACCOUNTS

20. PROFITS DISTRIBUTION IN MAM SYSTEM

21. No performance fees during these periods
HIGH WATER MARK PROFIT FEE SYSTEM
Profit
Profit

22. RISK DISCLOSURE
HIGH RISK INVESTMENT
Trading Forex/CFD & Options on margin carries a high level of risk, and may
not be suitable for all investors. The high degree of leverage can work against
you as well as for you. Before deciding to trade any such leveraged products
you should carefully consider your investment objectives, level of
experience, and risk appetite. The possibility exists that you could sustain a
loss of some or all of your initial investment and therefore you should not
invest money that you cannot afford to lose. You should be aware of all the
risks associated with trading on margin, and seek advice from an independent
financial advisor if you have any doubts. All accounts are margin leveraged
accounts. Clients must maintain an adequate amount of margin to sustain
their positions, if equity levels drops to 50% of used margin, a margin call will
occur. It is the investor’s responsibility to maintain a sufficient level of margin.

23. Thank you..
Contact us
Email: kvv1975@gmail.com
Skype: fxtein.venkat
www.theforexfundmanager.com
THE FOREX FUND MANAGER
CONSISTENCY MATTERS