Performance of the Night Fund: quarterly monitoring

[DesvudescobesS]

Well, it turns out that friends and family want me to operate their accounts. I said yes. I like both trading and seeing positive results that would make it FREE. My reward is to see people�s accounts grow and their positive reactions grow. I�m thinking that in the future I could dedicate myself to this professionally and set up a real fund if I can prove that I�m good. For now I will do it without charging, but I need a way to record my performance. Maybe if ForexFactory�s foreros see the results, they will be encouraged to join. This is not an operations journal, but a performance journal. Every three months I�ll publish results from the fund that I manage through Oanda�s FXManager, including a report with earnings, deposits, withdrawals and a summary of quarter operations. I�m figuring out how to calculate the actual performance, as I usually add capital after closing with benefits, as if it were my pension plan. This starts in January 2008. The first report will come in April. So nothing, thanks for reading and happy new year! Walking towards a membership in the CMECME!

[DesvudescobesS]

Some details about the background I set up with FXManager: I have four funds: Small Fund: minimum $501, operates EURUSD, USDCAD, NZDUSD, USDJPY Medium Fund: minimum $1,001, operates all major pairs Big Fund A and B: minimum $2,001 in each. I operate a mixture of all majors and crosses, 9 pairs per fund (EURCHF, EURCAD, EURJPY, EURAUD, GBPJPY, GBPCHF, AUDJPY, CADJPY, CHFJPY, EURGBP, AUDNZD

[bugwhutor]

Sounds great. Are you operating from a personal account or have you already set up a company? I ask because I want to do something similar in a few months. W

[DesvudescobesS]

I'm not really sure what you're referring to. I'm operating with FXManager using my FXTrade account. The funds are organized as subaccounts. I guess that's incorporating FXManager into my operation.

[TescakiTk]

No, I'm sorry for not explaining well. I meant to create a legally constituted company, to separate your personal assets from those of the fund (so if the fund fails, you don't lose all of yours

[DesvudescobesS]

Yes, the long-term idea is to mount a hedge fund type, but that will be in 10 or 15 years. For now, my goal is to gain credibility as a trader and form a customer base, so my friends and family are like my "Indian bunnies" and have no problem with that. With FXManager I can do it without legal trouble, although they have to sign a power and accept Oanda's standard contracts. Meanwhile, I don't charge anything, I just want to roll the project. Later, if more people come in, I will charge and legalize it with a specialized firm like Green Trader Funds.

[Boesthaisung]

Hilmy, let me slip into your thread for a second just to wish you all the success of the world in this new project that you are starting. I hope this year is yours! Mat�as Mart�nez

[DesvudescobesS]

Thank you, sir! (I suppose by your name you are Spanish.)

[ttcesryesnwz11]

Hilmy, luck with your project! What is the difference between Big Fund A and B? What risk and profitability profile do the 4 funds have? I would recommend that you give monthly updates instead of quarterly.

[JIEsNCU]

Maybe you should consider getting a partner. I don�t know what the laws are like in Canada, but here in the U.S., to form a corporation you need a partner. Although for an LLC you don�t need one, it�s advisable to have one. With an LLC you�re only taxed once, but with a normal corporation, you�re taxed twice.

[DesvudescobesS]

The reason I make quarterly and non-monthly reports is because I operate in daily graphs. And a month is not enough to reflect relevant results. But it�s a good suggestion, I�ll consider it. The only difference between fund A and B is that different markets operate, 9 pairs each. On the risk/return profile, I don�t have exact figures, but my history has been between 5% and 15% per quarter. I�ve still been operating a little over a year, so I don�t have much history. And as I�m managing money from close friends and family, you know this is a risky investment. Plus, they know that I have more money than anyone invested in this, so we�re all on the same boat.

[esSNrodius]

Hilmy, I was thinking about it because most of the funds break down their performance monthly. Obviously that will be useful if you think about growing up with external customers. And another thing, why did you split into 4 funds? Did you already operate your account as if it were 4 different funds? If you didn�t, separating your strategy into 4 can alter the risk/benefit profile. One can be -20% and the other planes, and in total you wouldn�t notice it. The equity curve is better if it�s stable than if it�s an electrocardiogram. Do you think about keeping the four or discarding those that don�t? Just a reflection. Happy New Year!

[DesvudescobesS]

My system is the same for all funds. The only thing that changes is the minimum capital required and the number of markets in which it operates. I do so so that people can start with little and distribute their money in several pairs without being overexposed. Regarding the reports, I already made it clear to investors that this is in the medium-long term, and that the performance is measured per quarter. I also show them how Oanda positions as broker (with future fund reports)

[dobs.axrtun]

Your intentions are good, but the execution looks like it's out of a college experiment, no legal structure, no commission, and family members as clients... it looks more like a Christmas dinner with MT4 than a serious fund.

[DesvudescobesS]

Haha, yeah, I know, it sounds like a home project, but I'm clear this is just the beginning. I'm planting seeds now, I don't expect to be Soros in six months.

[tirress1979]

What if someone asks you to withdraw their capital after a major loss? Do you have exit policy or do you just say "thank you for participating"?

[DesvudescobesS]

Good question. For now, if anyone wants to get out, they can do it at any time. No penalties, no blocks. But if this grows, I will implement more formal policies.

[tucky]

And what if you win 30% and someone comes in the next month? How do you measure the real return for each investor?

[DesvudescobesS]

That's why I'm learning about true return. I don't want the new ones to benefit unfairly from previous growth. I'm studying proportional calculation methods.

[bogaesrNo]

I'm worried about the fiscal issue, so you declare all that, because when you start moving real money, the IRS isn't going to take it as "friend practice."

[DesvudescobesS]

Yes, everything is registered in my personal account and declared as income. I keep it all transparent, even if it is not yet a legal company.

[axrdesvui]

What if you get hacked into Oanda's account? Where are the guarantees for your customers?

[DesvudescobesS]

I use two-step authentication and update passwords frequently. Obviously, it is a risk, but I try to minimize it as much as possible.

[TestchesdesCs]

Your transparency is admirable. I wish more managers were that sincere with their mistakes and drawdowns.

[DesvudescobesS]

Thank you, what I'm trying to do is be honest. I'd rather admit my failures than invent a constant 10% monthly return as many do.

[esSvesraresyi]

Actually, I don't understand why you don't use MyFXBook.

[DesvudescobesS]

I'm just having some trouble syncing with FXManager, but as soon as I figure that out, I integrate it.

[TodraToTo]

Don't you think it's too risky to use family money as a testing ground? It's like playing surgeon with your dog.

[DesvudescobesS]

I get it, but they came in knowing everything, not with false promises, I'd rather practice with real money than go on demo forever.

[SuSuthTsu]

If you ever open the fund officially, let me know, I'd like to join you.

[DesvudescobesS]

I appreciate it. When that time comes, I will definitely publish it here. This forum has been key to my development as a trader.

[buTSax]

Why don't you copy trading with platforms like Darwinex or ZuluTrade?

[DesvudescobesS]

I thought about it, but I'd rather have total control over management and customer relations.

[Nresnk14]

Man, if you don't win in August, you should consider whether this is your thing.

[DesvudescobesS]

I know, but you learn more from the blows than from the easy wins. August will be a month to adjust and correct.

[esngoSesry96]

What if the market goes into range for the next three months? Does your system adapt to that or does it eat losses like in March?

[DesvudescobesS]

Good observation. I am adjusting the inputs and outputs to be more flexible. I no longer operate the same in any condition.

[zesresnda]

I don't trust funds without an external audit. Who says you don't manipulate the results?

[DesvudescobesS]

I understand the doubt. That�s why I show screenshots and links in real time. But yes, a formal audit will be necessary in the future.

[TuTa84]

What if you die tomorrow? Where is the money? Is your cousin going to know how to close EURJPY?

[DesvudescobesS]

For now, my clients have access to their sub-accounts. If I disappear, they can disconnect from the FXManager.

[Korru]

Don't you think it's a little irresponsible to be operating without a fixed stop on every trade?

[DesvudescobesS]

It depends on the context. Sometimes I put it in the market, sometimes mental. But in all cases, I have daily loss limit.

[Saro20Nx]

That mental stop loss sounds like financial suicide.

[DesvudescobesS]

But there are times when the market "hunts" SLs at a penny. I prefer to control risk globally, not trade per trade.

[Inutod92]

Do you use leverage? How much are we talking about? Because that can kill a good system.

[DesvudescobesS]

Maximum use 1:10, but most of the time I operate between 1:3 and 1:5. No crazy with 1:100 or things like that.

[EsuTkrCC99]

I like your approach, little by little, building a solid foundation.

[DesvudescobesS]

I know it's gonna take years, but I'd rather go slow and well, than fast and ruin.

[jiesnu]

With that 30% drawdown, I don't know who would want to mess with you.

[DesvudescobesS]

Neither do I, the truth, but the idea is to show that I can get up after that. In the long run, that says more than any green streak.

[axruSi1962]

Are you planning on opening a YouTube channel or something like that? You could attract followers.

[DesvudescobesS]

Maybe when I sharpen my system and have something solid to teach, I don't want to sell smoke.

[sha0n]

The website you did is pretty crappy. Don't you think you should improve the image if you want to attract investors?

[DesvudescobesS]

I'm working on a more professional version. In the end, the first impression counts.

[ToSaTuxxis]

Do you operate only with technical or also fundamental analysis?

[DesvudescobesS]

Mainly technical. But I follow economic calendar and important macro news. They help me not to be blind to key events.

[woboress]

Aren't you afraid that Oanda will one day close FXManager and leave you hanging?

[DesvudescobesS]

That's why I have backup of all the data, but if it comes that day, I'll migrate to another broker with a similar structure.

[oSonesnuTkdoSbttqwvordo]

You have potential, but you need someone to help you professionalize this.

[DesvudescobesS]

I'm looking for mentors and contacts to help me structure this properly.

[VU]

What if your fund starts growing fast? Are you ready to handle 6 figures or more?

[DesvudescobesS]

Not right now, but if I see what happens, I'll look for legal, fiscal, and operational advice before I climb.

[resdesydar]

I hope in a year you're posting that you already have an official license and an open fund.

[DesvudescobesS]

And if I get it, this thread will be proof that it all started with a small account, friends and a lot of desire.