behind-the-curtain-managing-an-auto-signals-account

Too many people have skewed ideas about running money. Here are some common misconceptions about fund managers and, more in general, traders:

  • Fund managers know what’s going on within the “inner circle”, and that’s why they are only available to “high net worth” investors
  • Fund managers are superstars with very high living standards and care not about their clients
  • Fund managers always know what is best for your portfolio
  • Trading (or running money) allows for total freedom
  • Trading (or running money) can be done from anywhere – even from the beach
  • Trading (or running money) is the best job in the world

And basically the common denominator is: “managing money is the best way to earn a living”.

In this article, we shall debunk these myths and reveal how we manage the FX Renew Signals account. In doing so, we hope to accomplish at least two separate things:

  • Shine some light on how our trading decisions are made, being very transparent with our clients
  • Demonstrating what kind of habits, routines and mindset are required in order to be successful.

Benefits of an AutoSignals Account

The first question that you probably have is: “why should I even consider following your signals? I can do just as good on my own if I apply myself”.

fxrenew_autosignals

Of course, I am also a big fan of Do It Yourself and that’s why I enjoy helping traders overcome the learning curve and reach consistent results. However, not everyone is able to invest the amount of time & effort that it typically takes, in order to reach consistency. Typically it takes aspiring traders 12-18 months of disciplined application, in order to start carving out some decent results.

So the first evident benefit of our autosignals solution is that we have experienced traders and technical analysts working together 24/5 to manage positions and help clients  that are passionate about the markets, and wish to learn through immersion.  After all, an autosignals account is much more flexible than a normal “fund” as clients maintain control of the trading platform and can interveine discretionally if & when they have a trading view themselves.

In other words, the autosignals account:

  • Allows you to observe our decision making process as you learn
  • Allows you to benefit from our consistent approach
  • Allows you to discretionally act when you have strong views

And for the more experienced traders, that are past the learning stage:

  • Signals in general are an excellent diversification instrument

An Investment Committee at your service

However, decision making in the financial markets is not a black & white endeavour. Volatility & drivers change constantly, as the market is a fickle entity. That’s where experience comes in. That’s why it’s not an easy game to play and the unknown unknowns become constant frustrations for aspiring traders.

That’s where we really try to make a difference. By showing you how we make our decisions, we try to help you gain exposure and relevant experience. For example, we typically issue our trade calls at 7.00 AM London as that is when the market usually starts to move as European traders hit their desks.

However, the analysis is on-going as our team is split between Europe and Asia/Pacific. We primarily look to take advantage of the 7.00am – 11.00am move and are literally tic watching for every minute of the morning session – on the alert for any weakness to our call or changes in market dynamics. This is very unlike most service providers. The sheer amount of updates and risk management really sets us apart and minimizes our downside.

teamwork

The FXRenew Team. From the top going right: Sam, Alan, Steve, Justin.

We also have 4 different trader/analyst inputs so there is no collaboration or system until we pool the ideas and identify the theme and then the strongest trade candidates.

And the additional benefit is that compared to other signal providers or copy-trading accounts, you can learn exactly what we do.

So, in essence, being a professional money manager is not as sexy as it seems. It typically entails early mornings and long days, especially when going for intraday objectives. Even those managers who use trading systems are not typically detached from the markets. They are always monitoring the correct functionality of their systems and adjusting when necessary. And this is beyond the fact that despite all the hard work and best efforts, the market sometimes just does not cooperate.  That’s where experience plays a large role.

Let’s talk about experience just briefly.

For example, we enter our trades “around 7 AM London time”, but there is no particular setup or key price we need to wait for. It’s only a matter of answering the question “what are we comfortable holding”?

Let me ask you that same question: what are you comfortable holding right here, right now, and why?  Comfort means being confident that, more often than not, the market reacts the way you expect it to. Comfort is only reached through disciplined repetition of the same method over & over. Comfort comes from confidence and confidence comes from specialization. In our “investment committee” we all have a certain speciality:

Sam  = Macro (market type analysis, intermarket correlations, long term trends)

Steve & Alan = multiple time frame candle analysis, and technical analysis overlay

Justin = sentiment overlay (market dynamics & volatility readings)

Also keep in mind that although we do use Technical Analysis, it is just a tool and not a model in itself. Experience allows us to use the tools in a very consistent and disciplined way. It is true that Technical Analysis reflects human emotions: patterns repeat but we equally need experience to know when and when not to apply it. Just because the same situation appears to be manifesting itself, it doesn’t mean the resulting reaction will be the same.

Why Do Such Hard Work?

As you may have understood, running an autosignals account, or running money in any form, requires dedication, responsibility, resilience and discipline. And you still are only as good as your last trade – so the saying goes.  Why go through all the trouble?

Here is my own personal answer:

  • I want to help people that do not have the possibility to pay traditional fund managers
  • I want to educate people that want to learn how to work the markets from a certain angle
  • I want to lead people by example, by walking the walk and talking the talk

Over To You

By now, you should have a clear idea of how the work that goes on behind the scenes, and what it takes to run a consistent autosignals account. But the key ingredients that are required by any fund manager, of any size, are the same ingredients  that are required for trading  successfully, period.

That’s why we walk the walk but also talk the talk: we are here to share our experience and help you survive the learning curve, illustrating those practices that have allowed each team member to remain successful for so many years, through so many different market environments.

You don’t have to climb the learning curve alone.

Good Luck!

(To set-up Auto-signals become a member of FX Renew and recieve and you can copy our trades for a discounted rate of $60 per month. Click here to view membership options)

About the Author

Justin Paolini is a Forex trader and member of the team at  www.fxrenew.com, a provider of Forex signals from ex-bank and hedge fund traders (get a free trial), or get FREE access to the Advanced Forex Course for Smart Traders. If you like his writing you can subscribe to the newsletter for free.