Portfolios

Portfolio is an out-of-the-box investment portfolio created by ICE FX.
Portfolio 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.
Portfolio is a full-fledged investment portfolio. Therefore, you can invest up to 100% of your portfolio in ICE FX in Portfolio.
All Portfolios are formed only from managers who have been selected by ICE FX.
The minimum investment in the Portfolio is $10.
ICE FX creates an Portfolio consisting of managers who meet the requirements applicable to portfolio managers.Each manager has a certain share in an Portfolio, which determines how funds are distributed1. Portfolio formation$2 000$60030%$36018%$24012%$20010%$20010%$20010%$20010%Investors monitor the results of the Portfolio 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 Portfolio.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 portfolio manager is rewarded based on the results of his trading activity, regardless of the trading results of other managers in the Portfolio.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
Portfolio algorithmTradingTrading during the week.Distribution of returns between managers and investors in roll-over period.Roll-overAnalysis of PortfoliosAnalysis of traders in the Portfolio and the level of risk by the specialists of the CompanyAdjustment of account’s weight in the Portfolio 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 Portfolio are completely identical to the deposit and withdrawal rules for managed accounts.

Deposit Withdrawal
At any time 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 Portfolio are distributed proportionally among all the managed accounts in that Portfolio based on their shares. The rules for distribution of profits and losses in portfolio 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 portfolio 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 Portfolio has multi copies similar to individual managed accounts;
  • A multi-portfolio is made up of managed accounts with the same multiplier;
  • The multiplier of an Portfolio and the multiplier of managed accounts belonging to that Portfolio are the same;
  • Due to risk standardization, the parameters of an Portfolio grow in multiples of the multiplier;
  • Rules governing multi-indices are similar to those for indices and managed accounts.
MULTIPLICATIONPortfolio compositionMax weekly DDRisk per tradeWeight of the account in the PortfolioLimit of Portfolio lossesMA_1*2MA_2*2MA_3*2iPro*2iMain*2iComposite*210-20% 10-20% 10-20%2-6% 2-6% 2-6%25% 25% 25%2x%Portfolio x2Portfolio compositionMax weekly DDRisk per tradeWeight of the account in the PortfolioLimit of Portfolio lossesMA_1 MA_2 MA_3iPro iMain iComposite5-10% 5-10% 5-10%1-3% 1-3% 1-3%25% 25% 25%x%Basic Portfolio (Portfolio х1)Portfolio compositionMax weekly DDRisk per tradeWeight of the account in the PortfolioLimit of Portfolio lossesiPro*3iMain*3iComposite*325% 25% 25%Portfolio x3MA_1*3MA_2*3MA_3*315-30% 15-30% 15-30%3-9% 3-9% 3-9%25% 25% 25%3x%Portfolio compositionMax weekly DDRisk per tradeWeight of the account in the PortfolioLimit of Portfolio lossesMA_1*nMA_2*nMA_3*niPro*niMain*niComposite*n15-30% 15-30% 15-30%3-9% 3-9% 3-9%25% 25% 25%nx%Portfolio xn

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

Basic requirements for Portfolio 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 Portfolio

  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 (Portfolio) 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 Portfolio, %
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 Portfolio, %
MA 1 5-10% 5% 15%
MA 2 5-10% 5% 15%
MA 3 5-10% 5% 15%
MA 4 5-10% 5% 15%

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

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.
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.).

This Portfolio 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 Portfolio.

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.
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 $500.