TRADING BROKER'S Q&A

"Throughout my career, I've assisted numerous traders in navigating the complexities of trading, from securing brokerage agreements to optimizing their trading systems. If I were to manage a client's account, my approach would be characterized by a comprehensive and strategic methodology.

Firstly, I would conduct a thorough assessment of the client's risk tolerance, financial goals, and investment preferences. This would involve detailed discussions and potentially a risk appetite questionnaire to gain a deep understanding of their individual needs.

Next, I would develop a customized trading plan tailored to the client's specific circumstances. This plan would clearly outline the trading instruments, strategies, risk management protocols, and performance expectations.

In terms of execution, I would employ a disciplined and data-driven approach, utilizing a combination of technical and fundamental analysis to identify high-probability trading opportunities. I would prioritize capital preservation and risk management, implementing stop-loss orders and position-sizing strategies to mitigate potential losses.

Furthermore, I would maintain open and transparent communication with the client, providing regular performance updates and responding promptly to any inquiries. I believe in building strong relationships with clients based on trust, integrity, and mutual success.

Finally, I would continuously monitor market conditions and adapt my strategies as needed to ensure alignment with the client's goals and evolving market dynamics. I aim to provide a professional and reliable managed account service that delivers consistent results while prioritizing the client's best interests."

Frequently Asked Questions for Managed Account Services

Introduction

Thank you for considering our managed account services. We understand that each investor has unique financial goals and risk tolerance levels. This FAQ addresses common questions about our offerings, fees, risk management, and other important considerations. If you require further information, please don't hesitate to contact us.

Risk Assessment and Allocation

• Q: How much of my financial profile should I allocate to medium or high-risk trading?

• A: We recommend allocating between 3% and 15% of your portfolio to high-leveraged opportunities, especially for those new to such investments. It's crucial to understand the potential risks involved before committing capital. We generally advise a minimum investment of $50,000 for effective participation in our strategies.

• Q: What are the leveraged trading risks I need to be aware of?

• A: Leveraged products like CFDs can result in losses exceeding initial deposits. However, we implement automatic stop-loss orders to mitigate potential losses. While CFD trading can be highly profitable, it's essential to fully understand the risks involved and ensure it aligns with your risk tolerance. We adhere to strict risk management protocols, including limiting margin usage based on your risk appetite assessment and the agreed-upon strategy.

Account Management and Fees

• Q: What are the account minimums and fees for your managed account services?

• A: Our managed account services cater to a range of investors:

  • Minimum Account Size: While we generally recommend a minimum account size of $100,000 for optimal risk management and strategy implementation, we may consider smaller accounts presented by brokers with a total AUM of $5,000,000 and above.

  • Preferred Account Size: For greater diversification and lower risk, we recommend accounts starting from $5,000,000.

  • High-Net-Worth Accounts: Accounts with capital from $100 million and up qualify for additional services, including hedge fund programs and dedicated trading teams.

  • Account Management Fees:

    • A one-time setup fee of 15% applies to accounts under $10,000,000.

    • A 4% setup fee applies to accounts of $10,000,001 and above.

    • A performance-based fee of 30% of profits is charged for accounts under $10,000,000.

    • A 20% performance fee applies to accounts exceeding $10,000,001.

    • (Fees are negotiable based on specific circumstances and agreements.)

Regulation and Security

• Q: How important is regulation in the context of managed accounts?

• A: While regulatory compliance is essential, it's crucial to recognize its limitations. Regulations cannot fully mitigate trading risks or control individual trader strategies. We prioritize transparency and risk management, ensuring that your funds are held in secure, regulated accounts with major international banks. We recommend working with brokers and traders who are transparent about their risk management practices and have a proven track record.

Trading Strategies and Risk Management

• Q: What is your approach to risk management?

• A: We employ a comprehensive risk management strategy:

  • Margin Usage: We limit margin usage to a maximum of 10% of available capital, with the specific percentage determined by your risk tolerance.

  • Stop-Loss Orders: We implement stop-loss orders on all trades to limit potential losses.

  • Position Sizing: We carefully manage position sizes to ensure that no single trade can significantly impact your portfolio.

  • Trade Diversification: We diversify trades across various instruments and markets to mitigate risk.

  • Continuous Monitoring: We continuously monitor market conditions and adjust our strategies accordingly.

• Q: What are the key factors influencing trading risk?

• A: Trading risk is influenced by various factors, including market volatility, instrument selection, trade timing, and leverage. We conduct thorough analysis to identify and manage these risks, aiming to protect your capital while maximizing potential returns.

Trading Platforms and Access

• Q: What trading platforms do you utilize?

• A: We use FCA-regulated platforms with straight-through processing (STP) execution, ensuring efficient and transparent trade execution. Your funds are held in secure accounts with major international banks.

• Q: How can I access my account and monitor performance?

• A: You have 24/7 online access to your account to monitor performance and activity. We also provide regular performance reports and are available for communication via email.

Additional Information

• Q: What other important information should I be aware of?

  • A: We recommend that you carefully review all account documentation, including the Limited Power of Attorney (LPOA) agreement, terms and conditions, risk disclosure statement, and privacy policy.

  • We cannot guarantee future trade outcomes, as market conditions are constantly evolving.

  • We prioritize transparency and communication, ensuring that you are well-informed about your account and our trading activities.

Conclusion

We are committed to providing professional and transparent managed account services. We believe in building long-term relationships with our clients based on trust, integrity, and mutual success. If you have any further questions, please don't hesitate to contact us.

Definitions

To ensure a clear understanding of industry terminology, we've provided definitions for some common terms:

• Brokerage: A legal entity authorized to open customer accounts and manage funds.

• Broker: An individual employed by a brokerage who works directly with clients.

• Introducing Broker (IB): An independent entity that introduces clients to a brokerage in exchange for compensation.

• Prime Broker: A financial institution that provides clearing and settlement services for brokerage firms.

• ECN (Electronic Communication Network): An electronic trading system that matches buy and sell orders directly, without intermediaries.

• Forex (Foreign Exchange): The global marketplace for trading currencies.

• Customer/Client/End-User: The individual or entity who opens an account with a brokerage.

• Wire Transfer: An electronic method of transferring funds.

• Self-Trader: A client who manages their own trades.

• Managed Account: An account where a third party (trader or firm) has the authority to execute trades on behalf of the client.

• Dealer: An individual or software that manages the risk exposure of a brokerage.

• Trading Platform: Software that provides access to market data and trading tools.

• Trade: The act of buying or selling a financial instrument.

• P&L (Profit and Loss): The financial outcome of trading activities.

• Margin Trading: Using borrowed funds to increase trading position size, which amplifies both potential profits and losses.

• Margin Call: A demand for additional funds to cover potential losses when account equity falls below a certain level.

• Bid: The price at which a buyer is willing to purchase an asset.

• Ask: The price at which a seller is willing to sell an asset.

• Spread: The difference between the bid and ask price.

• Lot: A standardized unit of trade for a specific asset.

Primary vs. Secondary Markets

• Primary Market: The market where securities are issued for the first time, such as during an Initial Public Offering (IPO).

• Secondary Market: The market where investors trade existing securities among themselves, such as stock exchanges.

Risk Appetite Test

To better understand your risk tolerance and recommend suitable investment strategies, we encourage you to complete our risk appetite test. Please answer the following questions honestly and send your responses to derick@dlviustus.com for evaluation.

(Please include the risk appetite test questions from your original document here.)

Trade Information

• Instrument Priority: Foreign Exchange (Forex), Derivatives, and Contracts for Difference (CFDs)

• Markets: Forex, Indices, Commodities, Gold, Silver, Oil

• Instrument Preference: GOLD, GBP/USD, GBP/JPY, GBP/CHF, EUR/USD, USD/JPY, EUR/GBP, S&P 500, FTSE, USD-Index

• Managed Accounts: Typically utilize mini-lots (10,000 shares per lot) for efficient risk management.

• Leverage Factor: Varies depending on the regulatory environment (1:100, 1:50, or 1:30).

More Detailed Trade Risk and Exposure Information

• Margin Usage: A minimum of 1% of available capital is used per trade for margin, with the total margin usage not exceeding 10%. This may be adjusted based on market conditions and risk assessment.

• Stop-Loss Orders: Stop-loss orders are implemented on all trades to limit potential losses. The stop-loss range is typically calculated based on the average daily trading range of the instrument.

• Risk Assessment: We consider various factors, including technical analysis, fundamental analysis, market sentiment, and volatility, to determine appropriate risk levels for each trade.

Trading Platforms and Technology

• Platform Selection: We utilize FCA-regulated trading platforms with straight-through processing (STP) execution, ensuring efficient and transparent trade execution.

• Account Security: Your funds are held in secure accounts with major international banks, such as HSBC, Barclays, OCBC, Swiss Bank, Lloyds, and Deutsche Bank.

• Power of Attorney: Managed accounts are traded under a Limited Power of Attorney (LPOA), ensuring that the trader cannot deposit or withdraw funds from your account.

Regulations and Compliance

• Regulatory Oversight: Our preferred trading platforms are regulated by the Financial Conduct Authority (FCA).

• Client Protection: We adhere to strict regulatory guidelines to protect client funds and ensure ethical trading practices.

Access and Communication

• Account Access: You have 24/7 online access to your account to monitor performance and activity.

• Communication: We are available for communication via email and provide regular performance reports.

Trade Records and Performance

• Performance Disclaimer: Past trade records are not indicative of future performance. Market conditions are constantly evolving, and every trading period may yield different results.

• Transparency: We maintain detailed trade records and provide transparent performance reporting.

Conclusion

We are dedicated to providing professional, transparent, and secure managed account services. We believe in building long-term relationships with our clients based on trust, integrity, and mutual success. If you have any further questions, please don't hesitate to contact us.