Index is an out-of-the-box investment portfolio created by ICE FX.
Index is created to facilitate the investment process for those clients who need out-of-the-box solutions due to lack of time, knowledge, or ability to analyze managed accounts and create a portfolio on their own.
Index is a full-fledged investment portfolio. Therefore, you can invest up to 100% of your portfolio in ICE FX in index.
All indices are formed only from managers who have been selected by ICE FX.
The minimum investment in the Index is $10.
ICE FX creates an index consisting of managers who meet the requirements applicable to indexed managers.Each manager has a certain share in an index, which determines how funds are distributed1. Index formation$2 000$60030%$36018%$24012%$20010%$20010%$20010%$20010%Investors monitor the results of the index and decide on investing funds. 2. Investing= $8 000$2 000 + $1 000 + $2 000 + $3 000$1 00012.5%$2 00025%$3 00037.5%$60030%$36018%$24012%$20010%$20010%$20010%$20010%$300+$400$900$180+$360$480$120+$240$360$100+$200$300$100+$200$300$100+$200$300$100+$200$300During a certain trading period managers earned the following funds in the Index.3. Managers’ trading+ $20030%+ $4018%+ $5012%+ $4010%- $1010%+ $4010%- $1010%+ $50According to the public offer, the investor pays the manager part of his profit as a reward (20% in the example).4. Distribution of profits to managersAn indexed manager is rewarded based on the results of his trading activity, regardless of the trading results of other managers in the index.30%$818%$1012%$810%$010%$810%$010%$8-20%+$40-20%+$50-20%+$40-$40-20%+$10-$10-20%+$50++++++=$10$0$8$0$8$10$8$44Profits of managers are as below:5. Distribution of profits to investors$156 * 12.5%$19.5$156 * 25%$39$156 * 37.5%$58.5$200 $44=$156
Index algorithmTradingTrading during the week.Distribution of returns between managers and investors in roll-over period.Roll-overAnalysis of IndexesAnalysis of traders in the Index and the level of risk by the specialists of the CompanyAdjustment of account’s weight in the Index to the original.Adjustment of weightREPEAT BY THE END OF THE CALENDAR QUARTER 1 3 4 2

Deposit and withdrawal

Deposit and withdrawal rules for an index are completely identical to the deposit and withdrawal rules for managed accounts (PAMM and MAM models).

Investor model Deposit Withdrawal
PAMM Once per day (00:05 – 00:15 EET) Once per day (00:05 – 00:15 EET)
MAM At any time At any time
  • The table shows the execution time of a deposit/withdrawal application. An application can be submitted at any time;
  • An application is executed only during the open market period (00:05 ET Monday – 23:50 EET Saturday).

Distribution of Profit and Loss

Investor's funds in an index are distributed proportionally among all the managed accounts in that index based on their shares. The rules for distribution of profits and losses in indexed managed accounts are completely identical to the rules for distribution of profits and losses for any managed account.

The manager's performance fee is indicated in the offer of indexed managed accounts. If a loss is made for a trading period, the manager who made the loss will receive no performance fee until his trading compensates the investor's loss

  • Each index has multi copies similar to individual managed accounts;
  • A multi-index is made up of managed accounts with the same multiplier;
  • The multiplier of an index and the multiplier of managed accounts belonging to that index are the same;
  • Due to risk standardization, the parameters of an index grow in multiples of the multiplier;
  • Rules governing multi-indices are similar to those for indices and managed accounts.
Index composition Max weekly DDRisk per tradeWeight of the account in the indexLimit of index lossesIndex composition Max weekly DDRisk per tradeWeight of the account in the indexLimit of index lossesIndex composition Max weekly DDRisk per tradeWeight of the account in the indexLimit of index lossesIndex composition Max weekly DDRisk per tradeWeight of the account in the indexLimit of index lossesMULTIPLICATIONMA_1*2MA_2*2MA_3*2MA_4*2iPro*2iMain*2iComposite*2iMinor*210-20%10-20%10-20%10-20%2-6%2-6%2-6%2-6%25%25%25%25%2x%Index x2MA_1MA_2MA_3MA_4iProiMainiCompositeiMinor5-10%5-10%5-10%5-10%1-3%1-3%1-3%1-3%25%25%25%25%x%Basic index (Index х1)iPro*3iMain*3iComposite*3iMinor*315-30%15-30%15-30%15-30%3-9%3-9%3-9%3-9%25%25%25%25%3x%Index x3MA_1*3MA_2*3MA_3*3MA_4*3MA_1*nMA_2*nMA_3*nMA_4*niPro*niMain*niComposite*niMinor*n15-30%15-30%15-30%15-30%3-9%3-9%3-9%3-9%25%25%25%25%nx%Index xn

ICE FX selects managers for its portfolio products by considering each candidate on an individual basis.

Basic requirements for index candidates:
  • Must have a successful long trading history, as well as verified monitoring system for the trading account (myfxbook);
  • Must provide trading history and necessary explanations on trading logic;
  • Must agree for ICE FX to apply automatic risk-limiting system with defined parameters, as well as agree for ICE FX risk managers to manually control his trading activity:
    • Limiting the maximum loss for the week (normalized in accordance with the risk standardization system);
    • Limiting the maximum leverage (limited based on the trading needs for a given risk level).
  • Must agree with the investment transparency policy of ICE FX:
    • The managed account must be constantly connected to a third-party monitoring system (for example, myfxbook) with an open trading history and maximum frequency of statistics update;
    • Provision of an investor password: publicly for the first 6 months, and subsequently periodically for ICE FX privileged clients;
  • Must have an open history of closed trades;
  • Must agree to correct his trade at the request of the risk management department of ICE FX;
  • Must agree with the risk management department of ICE FX on any changes in trading activity;
  • Support of communication with the Administration.
  • Adjustment of the parameters of the offer with the Administration of the Company, in particular:
    • Remuneration from investors' income;
    • Preferential offers for customers with a privileged status;
    • Consent for the option "Indefinite compensation".

Selection of ICE FX Managers

ICE FX selects managers for its portfolio products by considering each candidate on an individual basis. We do not consider it appropriate to select managers based on a strictly prescribed set of statistical parameters, as is the case in many companies. In our opinion, creating clear boundaries for the whole variety of possible trading systems, risk management systems and money management systems is nothing but a Procrustean bed and makes no sense.

Full trading analysis:
  1. Analysis of the trading idea embedded in the system and its potential longevity
  2. Analysis of implementation of the trading system
  3. Analysis of the existing risk management and money management approaches
  4. Analysis of statistical parameters of the trading history
  5. Analysis of dependence of the results of the system on trading conditions
  6. Analysis of the scalability of the trading system.
Full trading analysis:
  1. Duration > n months
  2. Returns > n %
  3. Maximum drawdown < n %.
    And so forth...
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Risk Standardization

All selected managers are standardized for maximum interval risk value (maximum loss for the week) at 5-10% level (depending on the type and indicators of the trading system). Risk standardization allows to accurately calculate the risks of a portfolio and simplifies the creation of balanced portfolios.

Maximum loss
for the week, %
Level of risk on account
per trade, %
MA 1 5-10% 1-3%
MA 2 5-10% 1-3%
MA 3 5-10% 1-3%
...
MA n 5-10% 1-3%
Maximum loss
for the week, %
Level of risk on account
per trade, %
MA 1 5-10% 1-3%
MA 2 50-80% 10-15%
MA 3 20-30% 4-6%
...
MA n 30-50% 7-10%
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Building an Index

  1. The risk/loss parameter is the most important calculation parameter since knowledge and loss limit are the most important for the investor (in comparison, for example, with possible profit limits, etc.).
  2. The degree of influence on the result of a portfolio (index) of each managed account belonging in the portfolio should be the same. That is, there should be no situation where one account drags the entire portfolio into profit or loss.

Risk standardization simplifies the process of building a portfolio according to the above rules. Thanks to risk standardization, it is not required to calculate the share of each managed account individually, since the risks and volatility of all accounts that are on the same level of multiplication (base accounts, accounts*2, accounts*3, etc.) are brought to approximately one level. To build a balanced portfolio, you just need to include in it accounts of the same multiplication level in equal shares.

Maximum loss for the week, % Average volatility of weekly results, % Account share in the index, %
MA 1 5-10% 5% 25%
MA 2 5-10% 5% 25%
MA 3 5-10% 5% 25%
MA 4 5-10% 5% 25%
Maximum loss for the week, % Average volatility of weekly results, % Account share in the index, %
MA 1 5-10% 5% 15%
MA 2 5-10% 5% 15%
MA 3 5-10% 5% 15%
MA 4 5-10% 5% 15%

Currently, there are 5 different indexes in the company, which have different formation logic.

It is the most conservative of all indices in ICE FX. iPro trading strategies are based on potentially long-lasting ideas, namely: classic trend systems, SWING trading, trend-following strategies, and trading based on inertial price dynamics after the release of important macroeconomic news. All trading strategies are weakly correlated with each other.

Completely excluded are such techniques as
  • Averaging;
  • Martingale;
  • Increase in Stop Loss level;
  • overstaying in loss-making trades;
  • Other high-risk techniques.

All trading strategies must include setting the Stop Loss and Take Profit levels for each trade.

This index is suitable for low-risk long-term investments, as well as for investors whose main goal is to minimize possible losses.

Advantages
  • Potentially long-lasting trading strategies;
  • Possible risk of loss is minimized;
  • Complete absence of toxic trading methods (martingale, averaging, etc.).
Disadvantages
  • Relatively low potential returns;
  • High probability of flat periods

It is a hybrid of the iPro and iMain indices. This index includes all iPro and iMain managers with a certain proportion of shares, which dynamically change based on the composition of both indices.
As a consequence, iComposite combines aspects and features of both components and has the widest diversification in terms of trading strategies and instruments. Due to its widest diversification, this index is potentially the most stable and has the best risk/reward ratio.

This index can be used as a full-fledged investment portfolio with a moderately conservative risk level, suitable for both medium-term and long-term investments.

For those who do not have enough experience or time to independently analyze trading strategies, ICE FX strongly recommends that they first of all consider investing in this index.

Advantages
  • Potentially long-lasting trading strategies;
  • The risk/reward ratio is balanced;
  • Maximum diversification in terms of trading strategies and instruments.
Disadvantages
  • Insignificant presence of high-risk techniques (pyramiding, etc.);
  • High probability of flat periods

It is more aggressive than iPro. Selection of iMain managers does not differ radically from selection of iPro managers, except that iMain involves higher money management aggressiveness. All the trading strategies are weakly correlated with each other.

Completely excluded are such techniques as:
  • Averaging without loss limit;
  • Martingale;
There may be insignificant high-risk techniques, such as:
  • Increasing the size of trades when the price moves towards the Take Profit level (pyramiding);
  • Increasing the size of trades when the price moves towards the Stop Loss level with a loss limit on aggregate trading position.

This index is suitable for risk-taking investors or for the moderately aggressive part of an investment portfolio.

Advantages
  • Potentially long-lasting trading strategies;
  • The risk/reward ratio is balanced;
  • No toxic trading methods (martingale, averaging, etc.).
Disadvantages
  • Insignificant presence of high-risk techniques (pyramiding, etc.);

It is presently the most aggressive index of all the indices in ICE FX. The following are allowed for iMinor managers unlike for iMain and iPro managers:

  • Highly aggressive money management;
  • Nonclassical ideas embedded in the trading strategy, or specific implementation of these ideas.

Consequently, iMinor results are supposed to be the most volatile and least predictable in comparison with other indices.

Completely excluded are such techniques as:
  • Averaging without loss limit.
  • Martingale.
There may be insignificant high-risk techniques, such as:
  • Increasing the size of trades when the price moves towards the Take Profit level (pyramiding);
  • Increasing the size of trades when the price moves towards the Stop Loss level with a loss limit on aggregate trading position.

This index is suitable for risk-taking investors or for the moderately aggressive part of an investment portfolio.

Not recommended for long-term passive investments.Not recommended for rookies.

Advantages
  • Potentially long-lasting trading strategies;
  • The risk/reward ratio is balanced
  • No toxic trading methods (martingale, averaging, etc.).
Disadvantages
  • Insignificant presence of high-risk techniques (pyramiding, etc.);
  • High potential volatility of results;
  • Low potential predictability and repeatability of results in the long term.
Note!
  • Past performance does not guarantee future results. ICE FX cannot guarantee your future results and/or success.
  • ICE FX provides only managed account service for investors and managers. The company is not a representative of any of the parties to trust management.
  • ICE FX does not participate in managing the funds of clients that are investing in managed accounts.
  • Leveraged investing exposes an investor to higher risk and can lead to complete or partial loss of one's funds.
  • If you do not fully understand the investment process or the degree of risk you may be exposed to, consult a third-party specialist for advice.
  • The minimum amount required by a manager to open a managed account is $1,000.