APF Trading

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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 will 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.

Trading Strategies

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 all 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.

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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 typically lag movements in other asset classes generating potential for systematic predictability.

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 dollar 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

Performance Fee

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 watermark'.

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 will 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 will 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

Value: $105,000

Profit: $5,000

Performance Fee: $1,000 (20% of $5,000)

Closing balance: $104,000

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March 1, 2010 - Investment has decreased to $103,000

Value: $103,000

Loss: $1000

Performance Fee: $0

Closing balance: $103,000

April 1, 2010 - Investment has increased to $104,750

Value: $104,750

Profit: $1,750

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

Value: $107,000

Profit: $2,250

Performance Fee: $400 (20% of $2,000)

NOTE: The performance fee is only charged on the profit in excess of the 'High Watermark', ie $105,000.

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 will 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 will vary based on the open date, the performance fees are calculated separately for each account.

Open Account

Our partner broker and clearing house is registered Futures Commission Merchant, Forex Capital Markets (FXCM). Read more about FXCM

Regulation:

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.

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Please follow the steps below in order to open an account. If you have any questions, please contact us at contactus@apftrading.com

Step 1

Please EITHER complete the online application at FXCM

or fill in this PDF Application Form and mail it to contactus@apftrading.com

(Please choose USD as your base currency)

Step 2

Please fill in the Limited Power of Attorney PDF and mail it to contactus@apftrading.com

FAQs

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. All 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 physically cannot withdraw a penny from your account, ever.

Will I have visibility to my account balance?

Yes, it is your broker account, you will have 24/7 real-time access to view your account balance and trading activity.

How much notice do I need to give APF Trading to withdraw my funds?

Technically, 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?

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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 market

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 all 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 attorney?

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 will completely depend on what is happening in the market. Sometimes you will see several trades a day, and other times you will see no trades at all. 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 DeMark Indicators.