Money Manager/MAMM Policy
In order to become a Money Manager and run a MAMM account at BlueStarFX, you must have a complete trading history on a live account of no less than 3 years. Higher risk trading requires trading history of 3-5 years. Statements, MyFXBooks and other materials are taken into consideration upon granting you a MAMM at BlueStarFX. We will also not tolerate any excessive drawdown past 30% of the principal of client accounts. Once this drawdown is exceeded, you will not be compensated for the loss and trading will stop immediately.
With the exception that the clients accept the risk of higher drawdown, you may be granted a MAMM only in the condition that all of the following clients are your own and they have agreed to a maximum drawdown percentage that is greater than the percentage set above.
BlueStarFX will not intervene on your trading, Stop Losses, lot sizes and take profits. If at any point the 30% drawdown is exceeded, we do reserve the right to do what is necessary on behalf of the client. PLEASE REMEMBER TO KEEP YOUR POSITIONS AND LOT SIZES REASONABLE! There will be no use of Martingale, pyramiding positions, or trading methods that require extremely large stop losses. Each trade should have a stop loss set accordingly.
BlueStarFX will do its best to ensure the stability and profitability of any trading systems introduced to clients but help reduce the amount of drawdown and risk to the client. The last thing we all want to see is someone walking away with a sad face and a wiped out account due to a careless trader.
All Money Managers will be required to have a stop loss and take profit on each trade executed reasonable to the lot size/account size. Trades left open without supervision with no stop loss will result in termination of your trading privledges to client accounts. Again, if the clients choose to allow the unsafe practices, they must sign a waver to accept the risk.
These conditions will be custom agreements built to your specifications and needs. In other words, your trading methods will be fully disclosed to the client with 100% transaparency so they know what they can expect. All agreements will be written and provided by BlueStarFX on behalf of the Money Manager or Introducing Broker. This will include a written “hard stop” agreement for each client that the trader must strictly adhere to.
The key to raising risks on accounts is to create a “padding” of profit in which will allow you more flexability. Remember, do not exceed your drawdown limit.
MAMM Managers will be required to hold an account with BlueStarFX in which commissions will be deposited each month. This account will also serve as a means for safety to the client. MAMM Managers will have to retain 10% of their commissions each month in their account. This 10% will mean that in any given month, the MAMM Manager will only be allowed to withdrawal 90% of the account while the remaining balance will be a protection to the client. In the event that client accounts attached to the specific MAMM exceed the drawdown amount allowed or their principal/profits are wiped out by careless trading, the 10% will be used and allocated to the clients as compensation. MAMM Managers will not be able to withdrawal their commissions until a full 60 days of trading is complete. This is to help ensure that the client profits as well and the manager.
For clients,the minimal participation period for our MAMMs is 90 trading days (this excludes weekends and holidays). Our staff takes the time in opening and processing your account, it is your responsibility to do your own research on the trading system or trader that is trading your account. Forex is not a “get rich quick scheme” and takes time to earn money in the market. Your funds protection is fully covered by our drawdown explained in this policy. BlueStarFX reserves the right to deny any principal withdrawal requests prior to the 90-day period as long as the guidelines within this agreement are strictly followed by the account manager. BlueStarFX also reserves the right to update, change or add to these terms at any point in time with or without notice. By completing an application with BlueStarFX, you agree to these terms and policies as they are displayed.
Clients with funds on a MAMM system must realize that funds within the MAMM cannot be withdrawn when there are live trades active in the system. You must wait for the live trade to close prior to requesting a withdrawal. New accounts cannot be added to a MAMM while there is an active trade on the system.
Limited Power of Attorney forms are provided upon request.
The Key: SAFETY for all parties