TheFXHelpers: Focusing on Consistent Profits and Capital Preservation

Transcription

1 1 TheFXHelpers: Focusing on Consistent Profits and Capital Preservation

2 2 Table of Contents Introduction to TheFXHelpers:... 3 Our Clients Interests Come 1 st :... 4 What Are Forex Managed Accounts?... 5 Foreign Exchange (FX) as an Asset Class:... 5 Benefits of FX Managed Accounts:... 6 How TheFXHelpers Selects its Traders:... 8 Investment Transparency... 9 TheFXHelpers's Brokerage Partners... 9 Third Party Custody Of Assets... 9 Access to Funds... 9 Performance Fees What is a High Watermark? How to Invest in a Managed Account from TheFXHelpers? Account Opening Process: Further Information Risk Disclaimer... 12

3 3 Introduction To TheFXHelpers: TheFXHelpers was established to help investors of all sizes, from retail to high net worth & institutional clients, achieve absolute returns with capital preservation in mind no matter what the market has to throw in our direction. The emphasis of TheFXHelpers' mission is to provide consistent returns for investors, irrespective of the general economic climate. This is achieved through trading with the most qualified and well seasoned traders in the industry. An investment in a currency fund is becoming an important component of well-diversified portfolios, as investors recognize the benefits of broad, global exposure to many different economies, investments and assets. The investment objective of TheFXHelpers funds is to achieve consistent capital appreciation over a medium to long term investment horizon, with capital preservation at the forefront.

4 4 Our Clients Interests Come 1 st : To avoid any conflict of interest our Traders do not make any money until they make you money, as they only get paid a performance fee based on a high water mark. The high watermark ensures that they will only get paid on new profits as well so growing your account balance is the only priority. There is no management fee and they do not get paid a commission for every trade they make. They only get paid on positive performance. To further put you at ease the first client in any account with each fund is TheFXHelpers itself. We only promote the funds and traders that are successful for us before we allow them to trade for you, promising you will not be a guinea pig. We believe that Forex Managed Accounts should be considered as a long term profitable investment that will help be a major part of every individual s retirement portfolio helping create additional positive income streams for themselves. Our aim is not the quick sky high win, we believe in a long term partnership between you and TheFXHelpers. The trading results our clients can request are based on live results from real trading accounts. We aim to deliver the highest degree of personalized service and attention we ourselves expect in all business relationships. To contact us for information about our funds send an to.

5 5 What Are Forex Managed Accounts? Trading for yourself in the Forex market is at best a difficult proposition. In order to become a successful Forex trader you must follow market movements 24 hours a day, seven days a week. Many Forex investors do not have the experience, time or desire to trade with this intensity themselves. Hence, Forex Managed Accounts were created as alternative investments to diversify your portfolio with, for investors with risk capital who do not necessarily want to trade on their own. They have absolute returns, so even during times when the market is in a downturn you can still make money. In a Forex Managed Account the owner of the account grants permission to the professional trader to trade on his/her behalf. Unlike mutual funds or hedge funds which commingle your funds with other investors, a Forex Managed Account is in your name and all or part of your funds can be redeemed at the end of the trading period. There is no lock up period. The Managed Account allows you to monitor the activity in your account. Based on your long-term goals, risk tolerance and time horizon, you may want to invest with one of our Managed Accounts. Foreign Exchange (FX) As An Asset Class: From 2003 to 2007 investors made money just by waking up in the morning. The stock market was booming, oil prices were rising, and the world economy was expanding rapidly, fuelled by low interest rates, cheap credit and a huge demand from China. Real estate prices also surged it seemed that an investment in property was a guaranteed way to become a millionaire you didn't even need the cash to purchase the property, as the banks were there to lend you the money! Then came the collapse of the property market in the US, which quickly spread over to Europe and the rest of the world. Then the collapse of dozens of banks and a freezing up of credit fell upon investors. Stock markets around the world crashed, and commodity prices collapsed as economic growth in China slowed to a near standstill. Oil prices fell from a peak of $147 a barrel, to a low of $34. Lessons to be learned: Diversify Your Portfolio in any market, especially a volatile market, and to consider foreign exchange as a unique asset class that has potential for absolute gains whether the market is rising or falling.

6 6 Benefits Of FX Managed Accounts: The Benefits of Investing in a Currency Fund Reduce Risk by Increasing Diversification - Diversification has always been a crucial element of portfolio management, and this has become increasingly evident in light of the recent market turmoil. As we have seen, traditional asset classes generally move in the same direction simultaneously i.e. they were highly correlated. Equities, commodities, real estate all moved up in tandem together as the global economy expanded on cheap credit and all plummeted in tandem in spectacular fashion as the markets crashed in 2008 and early As a result, investors had few options to protect themselves against the downside. Thus today, more than at any other time, there is a strong argument to add uncorrelated assets to an investment portfolio. Currency Funds: Outperforming Traditional Investment Funds as well as the benefits of diversification and reduced portfolio risk that an investment in a currency fund can offer, there is increasing evidence that currency funds are outperforming traditional investment funds. High Net Worth Investments Available to the Middle Class Hedge Funds only allow high net worth investors the availability to invest in such alternative high performing programs. With TheFXHelpers we strive to make alternative high performing investments available to not only the High Net Worth but also the middle class. We aim to build wealth for all. Massive Liquidity The 2010 survey shows a substantial rise in activity in traditional foreign exchange markets compared to Average daily turnover rose to $3.98 trillion in April 2010, an increase of 20% compared to Ability to Achieve Profit or Loss in Rising or Declining Markets Unlike equity and fixed income managers, a Forex Asset Manager employs both long and short positions with equal facility. In Forex trading, there is no difference in profit potential (or loss potential) between a long and short position. Because of this characteristic a Forex portfolio is not 'biased long' but able to profit under any market conditions.

7 7 Risk Control Investing in Forex incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investor account values. Leverage is an acceptable and useful tool when used judiciously and with strict risk management techniques. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional "buy and hold" investments. Diversification We have evidence that positive returns can be generated by pursuing a Managed Account with TheFXHelpers. What is less widely known is that the introduction of FX in a properly constituted portfolio of other assets can actually reduce the probability and severity of draw downs. This means that many participants in the FX market trade to hedge exposures rather than to generate investment profit. Greater Leverage Forex trading provides greater leverage than is found in traditional stock trading, which allows traders to control larger positions with smaller amounts of capital. This also allows you to trade the same size positions you might take with a stock broker, while leaving you with more available capital to trade more markets. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. Low Correlation FX returns have a very low correlation with bond or equity market returns. Between 1980 and 2006, they had a 5% correlation with equities and a minus 21% correlation with bonds. Equities and bonds, meanwhile, had a 26% correlation rate over this period. Reuters recently reported that the more than 200 currency funds grouped in the Lipper UK Offshore-Currency benchmarks delivered aggregate returns of 15.6 percent over the last 12 months and almost 28 percent over the last 3 years. That compares with an aggregate 12 month fall of percent in funds in Lipper's global equity benchmark, and a fall of 32 percent over three years.

8 8 How TheFXHelpers Selects Its Traders: We have a responsibility to ourselves and our clients to make sure we only have the best traders managing ours and our clients funds. Not only are our funds at risk, but our reputation and our clients funds are at risk too. For these very reasons we take every precaution available before we decide to start working with a trader. What we look for: 1) Long history of trading generally 5 years or more experience trading Forex and other markets 2) Real/Live Track Record we are looking for a profitable track record of at least months of positive consistent results, staying within proper risk management and drawdown guidelines on a live verifiable account. 3) We then ask that they open their own account with our preferred broker where they will trade their own money for a period of time. 4) After they have traded their own money we then invest some of TheFXHelpers money with these traders for a period before we release them to our clients. A brief example of some questions we like to ask our traders in our review process: 1. General strategy and risk management approach: 2. Trading style 3. Trading approach (news, momentum, reverse trend etc) 4. Trading and money management experience: Years of experience: Other asset classes traded: 5. Level of automation: Trading: Stop/loss: 6. Max drawdown expected: 7. Max drawdown experienced: 8. Per trade pip target: 9. Do you add to losers? 10. Minimum lot size:

9 9 Investment Transparency: TheFXHelpers places a high degree of emphasis on providing investors with investment security, account transparency, and access to their money on a daily basis. Investors are able to monitor their accounts in real time and can view current trading positions, account balances, and all other account activity. TheFXHelpers' Brokerage Partners: We clear all our trades for the TheFXHelpers Managed Accounts through reputable currency brokers, where a client's funds are held in segregated accounts, at fully regulated banks. Because of the regulated nature of FX trading, the particular broker we use will depend on the individual investor's country of residence. For further details of our current brokers, please contact us at. We are open to working with your preferred broker after we conduct due diligence on them, to ensure yours and our safety. Third Party Custody Of Assets: Knowing that your money is safe is of the utmost concerns for an investor. Traditional hedge funds have long operated as opaque, secretive institutions, where transparency is often limited to monthly paper statements, making the potential for fraud, as in the Madoff case, a significant concern. TheFXHelpers has no direct access to your capital, and are only authorized to trade your account and collect agreed upon fees. This provides a vital safeguard for the investor and can successfully mitigate the possibility of investment fraud. In practice, the investment process operates as follows: the client will open an account directly with the Forex broker; the client makes an investment in TheFXHelpers Managed Account by sending funds directly by wire transfer to their personal account with the Forex broker; TheFXHelpers will commence trading on the account once an LPOA has been completed; the client can access his account balance online 24 hours a day; the client can withdraw part or all of his investment at any time, with no penalty. Access To Funds: At TheFXHelpers, we believe that investors should never be denied access to their funds. Unlike most investment funds, our clients enjoy full access to their funds, and can withdraw part or all of their investment at any time, with no penalty, within the specified monthly withdrawal periods. Although we advise clients to invest for the long term, we understand the importance of instant access to funds, especially in today's markets.

10 10 Performance Fees: As is common with most investment funds of this type, TheFXHelpers will retain a Performance Fee on all positive profits achieved based on the High Watermark principle. Performance fees are based on a tiered scale depending on initial deposit. Please contact for more information. Unlike hedge funds or mutual funds, there is no entry fee, nor is there an annual administration charge, or other fees & charges. What Is A High Watermark? A High Watermark, is a common approach to the calculation of performance fees. It means that performance fees are paid only on NET new rises in asset value. If a temporary decline occurs, it must be recouped before new incentive fees are paid. This ensures that TheFXHelpers and its traders receive a performance fee only when the account value exceeds its previous high, cementing the fact that our interests are in line with yours. Example of a High Watermark You start with $50,000 in an account with a performance fee of 35%, and during the month there is $5,000 gross profit. The performance fee deducted would be 35% of $5,000, which is $1,750, so your net profit would be $3,250 and your account would now have a "watermark" new balance of $53,250. If in the next month there was a loss of $1000, there would be no performance fee deducted, since there is no profit, and your new balance would be $52,250. Your "watermark" is still $53,250. So there will be no performance fee deductions until you get past your current "watermark".

11 11 How to Invest in a Managed Account from TheFXHelpers? There is a minimum investment requirement of $10,000. Investors can invest either individually, or through a corporation. Account Opening Process: Investing in a Forex Managed Account with TheFXHelpers is a straightforward process, and involves completing the following steps: us at, or visit our site,, to fill out the online sign up form and complete the registration page. You will receive an notification from TheFXHelpers outlining the next steps. When your account application has been processed (which normally takes less than 24 hours), you will be provided with a unique account number from the Forex Brokerage, and required to send in appropriate documentation. Transfer funds by wire transfer to the bank account details provided by the Forex broker. Fill out an LPOA granting permission to TheFXHelpers to trade your account on your behalf. Within 48 hours, your account is live, TheFXHelpers can commence trading, and you can check your investment balance at any time.

12 12 Further Information: For further information about Forex Managed Account from TheFXHelpers, or for any further details contained in this prospectus, please feel free to send us an at. If you would like to speak with one of our team members, just us with your contact details, and the best time to call you, and we will be in touch shortly. Risk Disclaimer: Foreign exchange trading is a high risk investment. Trading in the foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals. The high degree of leverage offered in the Forex markets can work against you as well as for you. This is not a solicitation to invest and you should carefully consider your financial situation as to the suitability to your situation prior to making any investment or entering into any transaction. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns. Past performance is not indicative of future results, as returns may vary according to market conditions. Trading in foreign exchange is speculative and may involve the loss of principal; therefore, funds placed under management should be risk capital funds that if lost will not significantly affect one s personal financial well being. No representation is being made that participating in a managed Forex account or managed Forex trading program will necessarily lead to profit. Investors may incur into a series of consecutive losses and substantial equity-draw-downs that can deplete their funds before the occurrence of any meaningful profit accumulation.