We understand very well that online investment is fraught with concealment and distortion of information about investment products. That is why we do our best to make our investment system as transparent as possible.
The value of the equity of any managed account can be changed only in an online mode. This makes it impossible for managers to conceal any aspect of their trading and money management methods used.
Also, since any investor can track any price fluctuations made in the quotes of instruments in third-party sources, display of equity in online mode makes it extremely difficult for ICE Markets to falsify statistical trading parameters of a managed account.
Demonstration of execution of manager's trade at an external counterparty
Similar to the process of viewing hedging of own trades, ICE Markets provides anyone with the opportunity to see and verify that managers' trades executed are real.
To verify that managers' orders and their hedging at counterparties are real, you only need to order for hedging confirmation and name the trading numbers of any manager.
Display of investor statistical parameters
The statistical parameters of the investor of a managed account are displayed along with the general statistical parameters of that account. That is, those parameters that reflect the investment result of a hypothetical investor, rather than the manager's trading result. The parameters of a managed account and the investor may radically differ in view of the fact that the manager periodically receives performance fee, and the investor takes all the loss when there is a drawdown.
The returns of a managed account are always higher than those of an investor account. In some cases, a managed account can record a positive return, while the investor account records a negative return at the same time.
Many investment companies hide their investor statistics, preferring to display only the general account statistics, thereby deliberately misleading their clients.
At ICE Markets, the investor can always see both the statistical parameters of a managed account, and similar investor parameters. This would enable the investor make the right decisions.
We have done everything possible to give maximum freedom to managers and maximum protection and functionality to investors.
The manager trades on a separate account. The manager's trading activity does not differ from his activity on his personal trading account – deposit/withdrawal of investors' funds and auto-adjustment of trades do not affect the manager's work.
There is no auto-adjustment problem, where the manager needs to adjust the volume of new trades when investors' funds are changed manually or to disable auto-adjustment, agreeing with permanent distortion of results, or to limit the flow of new investments when there are open trades.
Aggregation of Trades of Multi-Managed Accounts
Trades opened on all multi-copies of a managed account (MA) are aggregated before being executed at an external counterparty. As a result, orders are executed at a single price on all multi-copies of the MA. This cannot be achieved if the manager manages several accounts separately.
Auto-adjustment of trades
Due to the existence of a master account, the trade auto-adjustment system does not affect the manager's work as investors deposit or withdraw funds, and the manager does not need to disable the system or adjust the trades manually. Minimizes discrepancy between the performance indicators of the accounts of the manager and investors through automatic reduction of the size of trades based on investors' funds – regardless of whether the investor terminates his investment in the account or invests in it.
Minimizes discrepancy between the performance indicators of the accounts of the manager and investors through automatic reduction of the size of trades based on investors' funds – regardless of whether the investor terminates his investment in the account or invests in it.
Risk Management System
Protects against force majeure and frees the manager from psychological stress by ensuring he complies with the risk rules set by himself.
Provides a loss limit for the investor and ability to forecast risks.
Allows the manager to focus on various categories of investors, without burdening himself with the task of monitoring and managing several individual accounts.
- The investor can choose the degree of aggressiveness of the managed account;
- The investor can invest less funds to obtain the same results in absolute terms and can reduce non-trading risks;
- Makes calculation of risks easier and enables the investor to create more diverse portfolios;
- Distributes the high-water mark method for all multi-copies of an account.
The account equity is displayed online
In ICE Markets investment system, the equity of any managed account is updated in online mode (once every 5 minutes). This allows you to see all the trading details. In the vast majority of investment systems and third-party monitoring systems, equity is updated discretely – with a frequency of 30 minutes or more. So the equity value within this interval remains hidden. Thus, visible investment risks always reduce: drawdowns will always look smaller, and some high-risk capital management methods (martingale, averaging, overstaying in loss-making trades) can be hidden
Full openness of trading indicators is an advantage to managers who do not use toxic trading methods (martingale, averaging, etc.) and have no reason to hide any of their trade indicators from investors.
The manager cannot conceal a particular trading method (martingale, averaging, overstaying in loss-making trades) or falsify trading results post factum.
Results on change of account equity can be calculated
The investment result is the change in the account equity from the moment the investor invests in the account till the moment he/she terminates such investment.
Withdrawal/deposit of funds by investors from/to an account when there are open trades does not distort results for both the manager and other investors.
Execution at a single price
The trades of all investment accounts and master accounts of the manager are aggregated before execution at an external counterparty. This eliminates differences in execution prices caused by a difference in the volume of executed trades or by a delay in copying by various components of the MA system.