American Clearing

Your Desired Partner

 

 

Block trading
(service for managers)

 

One of the most effective services of our company, provided to managers and investors, is "Block Trading" (a futures analogue of PAMM trading). We offer trust management of forex according to a similar scheme. This service works for a variety of platforms (TradingView / CQG, TradingView / Rithmic). Note that connecting the service is free of charge - with the help of a broker and a trade desk (a prerequisite is the presence of all accounts in the block with one quote provider).

 

Connection order

Filling out the POA (Power of Attorney) power of attorney form for accounts entering the block (or those that will take part in trust management).

First, you need to ask the broker to send the above form, as well as instructions for filling it out ... As a reminder, without a Commodity Trading Adviser (CTA) license, according to the law, no more than 15 accounts can be managed simultaneously. However, for security reasons (as well as risk management), in practice, without a CTA license, clearing will allow the simultaneous management of no more than 5 accounts, although sometimes there are exceptions. Activation of a power of attorney, as a rule, takes no more than three days from the moment the clearing receives the documents.

Selecting the desired trading block:

The first option provides for the creation of a trading block by a broker in the platform itself. There are no additional commission payments, however, this scheme is effective only for accounts trading in equal proportions (for example 1x1x1).

The master account manager trades one contract. Then the platform automatically divides the share by the number of block accounts, according to the pre-agreed proportions (if there are 5 accounts in a block, the platform will automatically place 5 orders when one button is pressed to buy / sell one contract). Note that when an account does not meet margin requirements, risk management excludes it from the block (temporarily). The block itself continues to trade. allocation   contracts according to account deposits - there is always the same allocation for all accounts in the block.

The following scheme provides for the initial opening of a client sub-account (it is an extremely simple procedure).

After the obligatory deposit of funds to the sub-account (the accounts participating in the block must be sub - accounts with funds), American Clearing Trading (trade desk), creates a block, in full accordance with the structural description of the broker. All contracts traded in accordance with this scheme are subject to an additional fee (for services), as well as a double guarantee. The amount of this fee is 0.5 dollars. per side (regardless of instruments and / or volumes). Traders independently choose the proportion according to which the allocation will be made (for example, 1x 2x 5), in which the manager must immediately trade 8,16,24 contracts (etc.) at a time (by pressing one button, in accordance with automatic distribution) .

Risk management scrupulously controls the entire block, however, the margin for each account is not visible to the manager. Therefore, even if one account does not meet the margin requirements, the trade desk “freezes” the entire block (ensuring security). Accordingly, it is imperative to take into account the balance of even the smallest account in the block, and in no case forget about the doubled margin. If orders are filled at different prices (for example, you trade one hundred contracts at the same time, while the market will allow you to fill 70 contracts at the value you specified, the remaining 30 will be filled at the next most profitable one), after clearing all accounts will receive equal shares calculated by the average total the cost of the entire number of transactions, in accordance with the proportions agreed upon in advance. All accounts of the block once a month (approximately), receive a "residual payment" (payments "residuals"), the calculation of which is made from an indivisible amount. Most often, this payment is small, however, calculated to a penny.

This scheme provides for a situation when the manager has a main account that is not included in the block. In this case, the manager has the opportunity to select it for a separate trade (the account must be replenished).   Note that differs from   PAMM'a,   is the absence of a floating proportion, according to which the automatic allocation   contracts according to the account deposit. On the contrary, in this scheme there is a constant, pre-agreed allocation for all accounts of the block. In this case, the proportion can be changed by informing the broker in advance.

How to manage multiple accounts at the same time

These features are also implemented on the basis of platforms. For example, auto-follow in Volfix or portfolio modeling in ATAS.

Contact us online if you have any questions.