nobsNetwork
- Nobs Network Forum- Nobs Invest - Nobs Investment Community
- Nobs HYIP Blog
- Forex for Beginner
No Bullshit Forex Blog, A Part of No Bullshit Network
A part of the nobs network
Nov 19th 2007
Now we’ve mentioned about Galleon Managed Forex services and their ludicrous $1,000 minimum managed account.
Here’s a pal’s experience with Galleon,
I just logged into my FXCM account to check up on how GalleonFX is managing my account, and to my dismay all the profits gained have been given back to the market. What can I say, I am naturally disappointed and I must admit I lost a bit of my initial fervor about GalleonFX. I kept a close eye on the opened positions in my test $1,100 account. At one point my account was up as high as $1500, but now as I speak it’s down to $1131! Right now I am sitting on a -$101 floating P/L (profit/loss). So, what is my opionion on this as far as why the crappy performance. Well, ever since I opened my account I noticed that while galleonfx give some pretty good entry signals, it really sucks at exiting out of profitable positions. I suppose their thinking (the programmers behind the automated trading sytem) is to avoid cutting a winning trade short, but what often happens is that a trade that is let’s say $200 in profit more than often ends up being a mediocre $23 or so gain, or even worse, a loss! I am not a forex expert by any means but I get the impression that galleonfx is running some sort of hedge and taking profits as a certain volatility level is reached which triggers the system to exit out of the trades if they are in profit. Perhaps those of you more knowledgeable can enlighten me.
The month is not over so I guess I still have a chance to end up with a mediocre profit- who knows! The only conclusion that I guess I can draw is that it might not be advisable to open an account with GalleonFX with just $1000 as they are currently offering (offer ends at the end of the month). Given the volatility that I’ve observed having such a small account size might not be a good idea.
Just my two cents. Hope to hear your opinion.
Cheers.
You’d want a minimum size of $10,000 for a managed account (and that’s not really even a huge sum as compared to some MAs that I know of). I wouldn’t be able to comment on how Galleon is managing since I’m not with them, but it’s good to know where they are at at this point.
Popularity: 12% [?]
Yes, the small account size can work against you as you don’t have that much capital to “fight the market” with. Well, as I said in my posting, it is a bit early to tell as we still have a week and a half left in this month, so I am hoping that galleonfx will end up with at the very least a modest profit. It started off the month with quite a bang, but for whatever reason (possibly due to market conditions) it gave back nearly all of the gains. As I said in the post I think their exit system is not all that finely tuned yet because I once had a $200 P/L and you’d think that once their new volatility exit system would have exited the trades with at the very least a $120 profit, but nope. In the end it ended giving back nearly the ENTIRE profitable position.
I hope people don’t get the wrong impression that one should just get out of galleonfx as soon as possible. I haven’t been with galleonfx long enough to form a good judgement about whether it’s worth sticking with it for the long haul.
I will keep everyone updated though with posts on my blog.
Cheers.
hey alan,
i understand what you’re trying to say. btw, would you like to share with everyone the steps of getting involve with Galleon? It would be good for everyone I suppose
Sure. The steps are simple and easy to follow (at least they were for me, but your experience may vary).
Step 1: Sign-up for a username at GalleonFX’s website
Step 2: Download the necessary paperwork (pdf format) for both GalleonFX and FXCM (the only broker you can use at this moment)
Step 3: Complete and fax/e-mail/mail the necessary paperwork
Step 4: Fund your account via wire payment or credit card (check is available too but its way to slow for most people)
Step 5: Sit back and make money
btw, update on my account status..it seems that I am slowly gaining ground and I’m sitting on a nice $125 profit right now (this in the space of about 30 minutes). In my mind this says one thing - crazy volatile. Then again volatility cuts both ways, in your favor, or against you.
Not sure about your Step 5 but, you should probably include this as a blog post for good referrals!
The volatility of their handling isn’t probably suitable for my taste. I’d probably stick to Dan trading for me in the near future, probably 6 months from now.
I just logged into my FXCM account to check up on how GalleonFX is managing my account, and to my dismay all the profits gained have been given back to the market.
You are surprized?
A little bit yes. I guess I was far too impressed with that 75% gain. I was hoping that their improved trading system would provide for a smoother equity curve. Realistically though I am okay as long as they don’t start chewing my initial capital; so far they haven’t.
Hmm, Jude I just might take your suggestion and run with it. Not for the referrals but mainly because I noticed that some people get confused by the rather lengthy account opening procedure ( a lot of papers to be faxed etc).Having a step by step guide might be of help to future members.
*runs to the typewriter*
Now let me know when your guide is done alright, I’ll link up
it’s done
see the most recent post.
Plugged in.
I have some comments on account size and volatility in general, and GalleonFx in particular.
For self trading accounts, account size does matter with most brokers. One has to have enough capital in the accounts to trade the minimum lot size, in order to weather the draw downs. For example, the minimum trade size is 1 mini lot (approx. $7-20K depending on pair) at many brokers. One would be crazy to trade a $300 account, because that means the actual used leverage is at least 23-67:1. A few percent currency movement wipes out the whole account. But some brokers do allow very small trade size. For example Oanda allows you to trade as small as 1 unit base currency (about $1), so traders can still practice good money management principals even with a tiny account. Another example is InterbankFX, a MetaTrader based broker that allows 0.01 mini lots (approx. $100 trade size). This is not an endorsement of either broker, just to illustrate my point here.
However, I don’t think the size of individual account has anything to do with the volatility of account in a PAMM based managed account, as in the case of GalleonFx. PAMM means Percent Allocation Management Module, a piece of software that the broker uses to distribute the profit/loss to all the accounts from a single master account which combines the balance of all the individual accounts. The trader trades the master account as a single big account, while all the individual accounts receive the profit/loss from the trades based on its proportion in th master account.
I have been in GalleonFx since the beginning of November, and have seen 20% equity change in one day! That is very high account volatility. The only explanation is that they are using too high leverage on the account (trade size vs total account size). GalleonFx has dozens of strategies running at the same time. If many of them are in the same direction/correlated at any point, you might see high volatility in the account. They should further reduce the size of individual trades to reduce account volatility. That does NOT require raising the minimum of individual investors’ account.
Hope this clears up some widespread misunderstanding.
Dear Sha,
Few days ago I opened a $1,000 account with fxcm to be managed by galleonfx on my behalf.
Your letter clarify me a lot of doubts.
Please I will be grateful to you If you write me to robertocarolini@hotmail.com giving me more advice.
Thanks
Roberto
Responded.
sha, you’re Tyrone right?
Hey Jude, I am shalu on HYIPdiscussion forum. we had couple of PMs long time ago. Have you checked out my site (managedforexpro.com) and blog on managed accounts?
Your site isn’t loading properly for me sha. I’ll pm you on HYIPD
Well, the overall result for November is 7%, however not for me! being from the UK, my account is now frozen as it seems that FXCM does not comply fully with UK regulations via the FSA , trying to see what the time line for them to obtain compliance will let you know………….
Wiztek, I am not surprised to hear that. I had some UK clients who wanted to open FXCM Sentiment Fund and were told that they couldn’t due to the same reason. When I inquired, FXCM rep told me that they can’t let ANY UK clients trading at FXCM through Power of Attorney.