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Frequently Asked Questions

Please see some commonly asked questions about Quantum Algorithmic Trading

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What is a managed account or DMA?

A discretionary managed account is an investment account that is owned by an individual investor and looked after by a hired professional money manager or by a group of managers. The managers get authorisation from the investor to trade his or her investment in the foreign exchange market in order to gain profits. The managers do not have access to the invested capital, they cannot withdraw money from it, they only get paid a performance fee.

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Do I have to open my own brokerage account in order to participate in a managed account program?

Yes, you have to open a Forex trading account with the broker used by the managed account program.

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What is a MAM / PAMM account?

MAM (Multi-Account Manager)

PAMM (Percentage Allocation Management Module)

Allows fund managers to manage multiple accounts from a single account.

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Why do some accounts have a minimum deposit higher than others, and yet the net profit history is lower than the others?

A lower net profit history usually comes in association with a lower history of drawdown, or lower risk of loss. The reason one might choose such an account is motivated as much or more by lowering risk, as by making profits. But because of the lower profit objectives, the account provider makes less money from their profit share and they have a certain minimum they wish to make, which they aim to achieve by requiring a higher minimum account size. It is not uncommon to see minimums of $100k, all the way up to $1 million , so what we are able to present to investors here is an exceptional set of opportunities.

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Do I need to keep my money in the managed account for a certain period of time to avoid penalties like mutual funds?

No, there are no penalties for withdrawing from the managed account program at any time you choose.

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If I do not withdraw profits, do they reinvest ” i.e. compound ” automatically?

Yes, eventually profits left in your account will be considered an addition to principal, and will be factored into trade size calculations for future trades.

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How is profit share/performance fee calculated? What if there is a loss?

At the end of the first month after your account begins trading, if there is a profit, the broker will deduct the performance fee/profit share, technically called the “performance fee” that has been authorized on the Power of Attorney you sign when opening your account. Each month they will do the same. The incentive fee is a percentage of the net profits per month from the “watermark” of previous highs. If there are no profits in a given month, there are no incentive fees. The high equity point established after performance fees are calculated creates the “watermark” which must be surpassed before any future profits may again be calculated.

This concept is further explored here.

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Once my new account is funded, how long before it will start being traded by the fund manager, when will I start seeing trades being placed?

Within 24 hours of a Trading Day / Business

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Can I open or close trades in the account that is being managed for me?

Power of Attorney. You can revoke the Power of Attorney to regain the ability to place trades in the account yourself, and then it will no longer be a managed account.

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Is the Power of Attorney permanent?

No. You can revoke the Limited Power of Attorney on your forex managed account at any time.

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How do I open an account?

Please go the page Brokers. On that page we provide a link to Instructions for opening an account, and the Account Application you must fill out and submit to the broker. If you have further questions, we can often help with what you need to know, or find out for you, as well as provide you the names of specific contact people at the brokerage from whom to get information most quickly.

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Can I choose my own broker for QuantumFX to be managing my account?

You can only choose from our partner brokers only as your account must be opened at the same brokerage as all others under management in that program. The trade manager for the program has access to software (PAMM) that allows trading of these accounts as a group, but they must all be at the same brokerage for the algorithm and trade manager to use this.

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How do I fund my brokerage account?

Most brokers accept multiple funding methods see broker website.

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How do I withdraw funds from my account?

To withdraw funds, you simply execute a withdrawal just as you would normally from any other brokerage account, according to the procedures the broker uses. Usually this involves submitting a form that you sign requesting the withdrawal, which also specifies the means by which you wish to receive the money, such as by bank wire or credit card. See the brokers website for details.

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Does QuantumFX or my Trade Manager for my managed account have access to my funds?

No, the funds in your Forex trading managed account are in your name at the broker. You are the proprietor of this account and the only one who can make deposits to or withdrawals from this account. The only power you grant to QuantumFX and the trade manager for the managed program is the power to trade your account through a Limited Power of Attorney, which also authorizes deduction of the agreed performance fee/profit share stated on the Power of Attorney.

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Does QuantumFX or my Trade Manager for my managed account have access to my funds?

No, the funds in your Forex trading managed account are in your name at the broker. You are the proprietor of this account and the only one who can make deposits to or withdrawals from this account. The only power you grant to QuantumFX and the trade manager for the managed program is the power to trade your account through a Limited Power of Attorney, which also authorizes deduction of the agreed performance fee/profit share stated on the Power of Attorney.

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When is the monthly profit share/performance fee deducted from my account?

The monthly profit share, or performance fee, is usually deducted by the broker on or near the first of each calendar month. Only the broker can say exactly what date they use, however, though generally you can expect it will be about the same time every month.

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How do I verify the status of my account?

When your managed Forex trading account is opened at the broker, you are issued a Username and Password which enables you to view and monitor the status of your account 24 hours a day. Through this Login, you can view a complete history of all closed trades as well as the status of any open trades.

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Can I stop my account from being traded at any time I choose?

Yes. To stop trading, you submit a revocation of the LPOA which originally authorized the trade manager for the managed program to place trades in your account. You submit this to the broker using the link found on the brokers web site. Their web sites are open 24 hours a day. To withdraw funds, you simply execute a withdrawal just as you would normally from any other brokerage account, according to the procedures the broker uses.

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TERMS OF USE | RISK WARNING | PRIVACY POLICY

QUANTUMFX LTD. COPYRIGHT © 2018 QUANTUMFX.CO.UK. ALL RIGHTS RESERVED

RISK WARNING:

MARGIN TRADING INVOLVES A HIGH LEVEL OF RISK, AND MAY NOT BE SUITABLE FOR ALL INVESTORS. DERIVATIVE PRODUCTS ARE LEVERAGED WHICH BOTH GAINS AND LOSSES ARE MAGNIFIED. YOU SHOULD ONLY TRADE THESE PRODUCTS IF YOU FULLY UNDERSTAND THE RISK INVOLVED.

PAST PERFORMANCE RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR BY PAST PERFORMANCE RESULTS. PROSPECTIVE CLIENTS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON PAST PERFORMANCE RESULTS AND SHOULD NOT BASE THEIR DECISION ON INVESTING IN ANY TRADING PROGRAM SOLELY ON THE PAST PERFORMANCE PRESENTED. ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, PROSPECTIVE CLIENTS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS AND THE TERMS OF THE ADVISORY AGREEMENT INCLUDING THE MERITS AND RISKS INVOLVED.

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