APF Managed Forex Accounts
Managed forex accounts are becoming an increasingly popular way of accessing the forex market for
retail investors, who might not have the time or expertise to trade their own account. An investment
in a managed forex account provides investors with the ability to profit from the currency market,
having their account managed by a professional money manager, whilst at the same time having
complete access to their fund, 24 hours a day.
It also provides a good alternative for diversification from traditional asset classes.
APF Managed Forex Accounts (under APF Trading Pte. Ltd.) provide investors with an alternative
investment at competitive fee charges, aims to make absolute positive returns irrespective of market
conditions, offers immediate access to capital and safety of their investment. The managed forex
account is managed to very strict investment criteria, with risk management a priority, so that
drawdowns and losses are minimised, and returns maximised.
Minimum Investment: USD 10,000
Here is a concise summary of our service:
• Client accounts wil be managed by APF Trading using a Limited Power of Attorney.
• We manage client accounts for absolute return profit objectives.
• We are compensated by performance fees, not by transactions made.
• We manage individual client accounts. We do not have a pool of funds.
• Client funds are sent to an established forex brokerage, not to APF Trading
• Accounts can be tracked 24/7, for balance, equity, statements, transactions, and fees.
APF Trading reserves the right to trade only accounts that we deem suitable. Before
investing, investors should realise that losses will and do occur in foreign exchange
trading. Please read our risk warning for more information.
APF Trading employs proprietary technical systematic trading strategies.
The main strategy is a basket of independent technical-driven models. Having a basket of
independent models improves the risk reward structure of the main strategy.
Our models are driven primarily by Ichimoku Kinko Hyo, DeMark Indicators, Fibonnaci and
Intermarket Quantitative Models.
Capital preservation is key. We adhere to strict money management rules in al our trading. 1% or
less of capital is risked per trade.
We seek to generate positive absolute returns by trading in spot currencies (mainly G7 pairs),
irrespective of prevailing market conditions.
Page | 1
The case for systematic trading in FX
In recent years, investor interest in systematic FX trading strategies rose markedly. We see this as
perfectly rational as there are 3 reasons why currency markets are potentially more suited for
systematic trading than other asset classes like stocks and bonds.
1) Currency trading decisions are a by-product of decisions made in other asset classes for most
investors. Such includes currency overlay for stock institutional investors for example. Therefore FX
markets typical y lag movements in other asset classes generating potential for systematic
2) Currencies are uniquely suited to macro-economic cycles. One of the best known macroeconomic
relationships are the highly pro-cyclical nature of the Australian dol ar and the safe-haven
characteristics of the Swiss Franc.
3) The currency market is highly liquid which makes systematic strategies scaleable while keeping
execution costs under control
Our fee structure is similar to most managed futures and managed forex programs. APF Trading
charges clients solely based upon the performance of the trading account. This means that if the
investor does not see an increase in his investment, then APF Trading will not charge any fees either.
Performance Fees (i.e. a share of the profits earned on the investment) are subjected to a 'high
We charge a performance fee of 20%.
We do not charge an entry fee, set-up fee, or an annual management charge to our clients.
High Watermark Calculation
The implementation of a 'high watermark' means that APF Trading wil only receive a Performance
Fee when the value of a client's investment is greater than its previous greatest value. Should the
value of the investment subsequently drop, we wil only receive a Performance Fee again once the
value of the investment has once again reached it's greatest value.
Below is an example to demonstrate how this works:
January 1, 2010 - Client invests $100,000
February 1, 2010 - Investment increased to $105,000
Performance Fee: $1,000 (20% of $5,000)
Closing balance: $104,000
Page | 2
March 1, 2010 - Investment has decreased to $103,000
Performance Fee: $0
Closing balance: $103,000
April 1, 2010 - Investment has increased to $104,750
Performance Fee: $0
NOTE: No Performance Fee is charged because the 'High Watermark' of $105,000 has not been
reached - as this is the highest value that the client's investment reached.
Closing balance: $104,750
May 1, 2010 - Investment has increased to $107,000
Performance Fee: $400 (20% of $2,000)
NOTE: The performance fee is only charged on the profit in excess of the 'High Watermark', ie
Closing balance: $106,600
The performance fees are influenced by the exact date when the account opens. Hence, participants
who enter into the accounts on different dates wil have different watermarks. Watermarks are based
on the actual returns and date of entry for each account, thereby resulting in different watermarks for
different accounts. Since account returns wil vary based on the open date, the performance fees are
calculated separately for each account.
Our partner broker and clearing house is registered Futures Commission Merchant, Forex Capital
Markets (FXCM). Read more about FXCM
FXCM is a registered Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED)
with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures
Association (NFA). FXCM is listed on the NYSE.
Page | 3
Please follow the steps below in order to open an account. If you have any questions, please contact
us at email@example.com
Please EITHER complete the online application at FXCM
or fill in this PDF Application Form and mail it to firstname.lastname@example.org
(Please choose USD as your base currency)
Please fil in the Limited Power of Attorney PDF and mail it to email@example.com
Why do you call it a Managed Account Program and not a Managed Fund?
A Managed Account is an investment account that is owned by an individual investor and looked after
by a hired professional money manager. Funds are held in segregated accounts and there is a clear
transparency on each transaction.
A Managed Fund is a fund structure which is invested into and managed by third parties that assign a
proportional interest in the assets of the fund, be it a brokerage account or other such interests. Al
funds are pooled and returns are reported as a percentage of the total fund.
Can APF Trading access my capital?
No, that is not possible. You open your own account with the broker directly and then sign a Limited
Power Of Attorney that gives us access and rights to trade only on your behalf – we physical y cannot
withdraw a penny from your account, ever.
Will I have visibility to my account balance?
Yes, it is your broker account, you wil have 24/7 real-time access to view your account balance and
How much notice do I need to give APF Trading to withdraw my funds?
Technical y, because your account is cash in your broker account, you can withdraw your funds at
any time without notice. However we ask our clients to give us 48 hours notice so we can stop taking
any new positions and allow any open trades to complete in their natural cycle.
I don’t see much legal disclosure documentation on your website like I do with Hedge
Funds and Mutual Funds, why is that?
Page | 4
Unlike Hedge Funds and Mutual Funds, you do not ever give your funds to us; you open an account
directly with the broker so these disclosures are all contained in the documentation you receive in the
process of opening your account with them.
Who are your investors
The managed accounts program is designed for retail investors seeking an exposure to the currency
How does APF Trading get paid?
All performance fees are paid directly to APF Trading by FXCM's automated backend system.
What currencies are the funds held in the trading account?
All funds should be held in USD.
How do I track the progress of my account?
As al trading is performed directly from the client’s personal trading account, clients can view their
account and watch trading live 24/7, through access to the executing brokers trading platform.
What happens once I place the funds into FXCM and give APF Trading limited power of
Limited power of attorney ONLY allows APF Trading to manage your FX account on your behalf,
meaning we can only place trades for you. Your funds are under your control and can be accessed
when you want.
Is there a guarantee of any sort?
There is no guarantee of profits. Clients should understand the risk of investing in Managed Accounts
Programs before commiting. Our interests are aligned with our clients, as we are heavily invested in
our own strategy as well.
How many trades can I expect to see each day?
The number of trades executed on any given day wil completely depend on what is happening in the
market. Sometimes you wil see several trades a day, and other times you wil see no trades at al .
We do not decide in advance how many trades to execute each day. We cannot predict the future,
and you should be worried if anyone told you otherwise. Patience is a quality we hope our clients can
appreciate in our trading style, just as we appreciate patience as a quality in our clients.
APF Trading is a trading advisory firm offering clients Managed Forex Accounts and advice on
multi-asset trading strategies, signals, trading systems, execution services and trading platforms.
The firm also conducts research and technical analysis with a focus on Ichimoku Kinko Hyo and
Page | 5