Trading Risks Overview
While all trading involves inherent risks, Fund Management at FXTRADING.com allows traders flexibility in their approach. Fund Managers can implement their preferred trading style and strategy, though proper risk management is strongly recommended as your performance metrics will be visible to investors.
Key Risk Considerations for Fund Managers
Billing Period Constraints
Fund performance is calculated based on specific time periods, which may create pressure to perform within these fixed timeframes rather than following your natural trading rhythm.
Delayed Performance Fee Collection
Performance fees are only paid at the end of each billing period, requiring managers to adapt to this payment schedule rather than receiving immediate compensation for successful trades.
Transparent Performance Metrics
Your fund's return metrics are always visible to potential investors - there's no option to hide performance data, meaning both successes and failures are publicly displayed.
Impact of Drawdowns
Accumulated losses directly reduce your performance fee earnings. This means drawdowns can have a more significant impact on your overall profitability compared to regular trading.
Investor Timing Issues
Investors who join your fund after significant gains may not experience the same percentage returns as earlier investors, potentially leading to misaligned expectations.
Risk Mitigation
Understanding these factors can help you adapt your trading strategies to better manage the unique challenges of fund management. For investors considering joining a fund, we recommend thoroughly researching available funds and reviewing all performance metrics before making investment decisions.