High numbers are not of high priority
The closer we are to the release date, the more the question arises of how to choose a proper manager. This choice is of paramount importance.
Let’s imagine, that a random Genesis Vision investor had a troubling experience with investing in the past. Our hypothetical investor already lost his fair share of funds, trying to master investment, but that ultimately resulted with a loss.
What will this disappointed investor look for in the first instance now he’s found the Genesis Vision platform?
We think it’s fair to say, that he would look for an investment program that has the largest percentage of profit in the shortest period. And that is quite understandable - a person has lost some of his hard-earned funds and he wants to return them quickly.
However, a big profit percentage almost always means that there is also a high level of risk, associated with that particular investment program.
It is important to understand that asset managers are just like regular traders, just with a much higher level of skill. However, they are just as susceptible to psychological breakdowns. And the first sign of the instability and exposure of the manager to risk is the "maximum drawdown" indicator. The smaller the figure, the better. If a manager uses more than 30% of the overall deposit for trading, then it’s worth being cautious, since such trades carry huge risks.
Drawdown can also go off scale if the manager does not use stop loss. Such accounts should understandably be treated with caution. Next thing we wanted to talk about is the profit and loss in points. The more profit in points, the more attractive the account becomes.
But the profit-loss ratio should outweigh the profits. If the profit in points is less than the loss in points, but there is a gain in monetary equivalent, this also indicates the manager's commitment to risk.
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