The Asirikuy Investment Project : Building a Community of Knowledgeable, Responsible, Money Managers

Yesterday I talked a little bit about my intentions to help Asirikuy members become money managers and how moral hazard is one of the key aspects that needs to be taken into account when having power over another person’s investments. Today I will unveil my Asirikuy Investment Project (AIP) which aims to allow Asirikuy members to become part of a community money management effort in which we will develop the skills of traders as money managers in a legal, ethical and transparent way. On today’s post I will explain the main aspects of what the project is about, what its objectives are and how you – as an Asirikuy member – may form a big part of it.

Definitely the quickest way in which a person can achieve trading for a living is through managing other people’s capital. Most traders generally spend a few years creating a reputable track record before starting to manage large amounts of other people’s money, allowing them to greatly leverage their profit outside their initial investments.

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Through this year several Asirikuy members have asked me for advice in this regard. Traders usually ask me questions about how they can start becoming money managers and how they can create a track record, etc. I obviously have given the training of Asirikuy members as responsible managers a lot of thought and the consequence of this is the creation of this new Asirikuy Investment Project.

The first thing that became obvious to me was that we needed a type of “community approach” since Asirikuy members attempting to manage capital with Asirikuy systems or derived ideas would inevitably compete with each other for capital. This in the end would possibly mean that the same effort would need to be done many times to create many track records for the same systems and approaches, etc.

My solution to this problem is what I believe will make Asirikuy members great money managers within a community framework. In order to do this in a very legal and transparent way I have decided to do so through the creation of an Asirikuy Investment framework based on PAMM accounts (Percentage Allocation Management Module Accounts). The advantage of using PAMM accounts is that no legal registration is required as investors make an agreement directly with the broker and therefore no LPOA (Limited Power of Attorney) or CTA or similar registrations are needed.

The mechanics of this will be pretty simple. Any Asirikuy member (right now, later on we might add other requirements such as a test or a given time running Asirikuy systems) will be able to become a part of the PAMM account through a 0% fee investment of at least 1K USD (meaning that they can keep their whole profits), giving them the status of “money managers” within the project. Based on what we decide between all “money managers” we will decide the rules which we will use to run the Asirikuy Community PAMM account (which systems, which worst case scenarios, etc). Based on what we decide we will then create a pdf file with all the account’s information which will be our way to introduce investors to our PAMM accounts, objectives, intended profits, draw downs, etc.

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There will be a series of different investment offers created for each Asirikuy “money manager” through which investors for each manager will be able to join the account. This investors will then pay their performance fees and these will be given to the specific manager which they joined through in the end of the year.

To sum it up, we will have a community of money managers associated through a PAMM account. We will decide collectively what to trade and each manager’s clients will have their profit allocated to each different Asirikuy money manager. In the end of each year I will then distribute these profits between the managers as indicated by their specific client make up. I will also take care of all VPS execution and handling of the automated trading systems we collectively decide to use although all managers will have investor access to the account to monitor it real-time through their MT4 platforms.

I have already started the PAMM account (with FXOpen as they are a non-NFA broker I fully trust which accepts US citizens) with 1000 USD. My idea here is that Asirikuy members will benefit the most so the PAMM will only start trading once we reach an investment capital above 20K USD from Asirikuy “money managers”. After this we will decide exactly what to trade and create our “introductory book” to share with investors our intended profit and draw down targets, system characteristics, global statistics, etc.

Of course this weekend I will release a full Asirikuy video showing members exactly how they can join the Asirikuy Community PAMM account, the account’s money manager joining password, etc. If you are interested you can take a look at the FXOpen PAMM account pages so that you can get yourself familiarized with the concept of PAMM trading, how you can transfer money to this broker, etc.

Feel free to leave any comments with any opinons, suggestions, questions, etc :o) Hopefully this will be the start of another important phase for Asirikuy, a point where Asirikuy members will start to develop their skills and increase their earning potential through ethical and sound money management, helping other people achieve their financial goals in the process :o)

If you would like to learn more about my work and how you too can develop your own likely long term mechanical trading strategies please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach to automated trading in general . I hope you enjoyed this article ! :o)

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9 Responses to “The Asirikuy Investment Project : Building a Community of Knowledgeable, Responsible, Money Managers”

  1. [...] yesterday’s post I introduced my Asirikuy Investment Project which is an effort to develop a community of knowledgeable, responsible and ethical money managers [...]

  2. Billy says:

    Wow Daniel. this is huge undertaking and very intriguing. I am definitely interested and will be checking out the videos. Thanks for all you do for the community. (and the little guys like me :)

    • admin says:

      Hello Billy,

      Thanks a lot for your comment :o) I know this is a huge undertaking and I have the highest hopes that it will turn out to be a great success ! If you are interested in orienting your forex trader career towards money management in a community environment then this might be a good choice for you. Certainly I hope you like the videos and the whole idea, feel free to leave any further comments here or within the Asirikuy Community forum on the new section devoted to the Asirikuy Investment Project. Also you’re very welcome, I genuinely care about every trader within Asirikuy and I am glad you feel this is the case :o) Thanks again for all your comments and support !

      Best Regards,

      Daniel

  3. Carlos Martínez says:

    Hi Daniel,

    My name is Carlos, although by your name I’m pretty sure you speak Spanish in a perfect way, as I’m not sure I write to you with a terrible English. I’m sorry by that in advance.

    I am a FOREX trader since more than 1 year ago with what I consider decent results, I mean, I’ve been able to earn some money and not to wipe out my account during this learning period through discretinary trading.

    I’m evoluting to an stage in which your proposal fits 100% my wills and I’m seriously thinking on becoming a new member of your Asirikuy project.

    What I’m afraid of is that before coming to a real account discretionary trading stage I tried with Managed Accounts first with an overall negative experience, i. e. I lost over 8.000 USD in total. My investment was spread among 5 different accounts with very irregular results. Of all of them it was precisely an Alpari PAMM account who performed the worst loosing over 4.000 USD in it, The manager was a russian guy who disappeared leaving my account with 25.10 USD balance. At a first sight their investment program figures were nice: very high yearly profit (I know now it was too high) and a drawdown less than 5%, track record more than one year… everything looked quite fine.

    I already know through reading (including you) what I did wrong but human fear is free and when I’ve seen references to PAMM account as a vehicle to handle your money managers community project I couldn’t avoid feeling some stress as I think that maybe I was scammed and to be honest I still don’t know how.

    I would appreciate some clarifications on how this PAMM account structure would work although my intention to become a member of Asirikuy goes beyond this and is not subjetc to a response.

    Thank you very much in advance, I think you are doing a great and honest work.

    Best regards,

    Carlos Martínez.

    • admin says:

      Hello Carlos,

      Thank you very much for your comment :o) I do speak Spanish fluently but I do appreciate your post here in English as this allows all my visitors to understand what is being said and to benefit from my answers.

      Certainly I understand what you mean by having a “bad experience” with PAMM accounts. The main advantage of PAMM accounts – which is their lack of needed regulations – is also perhaps their biggest problem. The problem with a PAMM is that anyone can open one and lure investors into it without any legal problems, reason why PAMM accounts are most of the time run by very inexperienced traders with lack of trading experience usually attracting investors with extremely high short term results that are not sustainable in the long term. I have observed PAMM accounts for nearly 5 years and I have always noted how the top 10 PAMMs on every broker seem to go through an endless cycle of change as they boom and bust through time.

      The PAMM account structure within this project works in a very simple way. I have opened a PAMM account with the objective of having a global Asirikuy track record which all Asirikuy money managers can use to attract investors. Money managers join the PAMM through a 0% fee investor proposal (so I certainly cannot get any money from any manager, either through fees or through direct withdrawals (as a PAMM also doesn’t allow me to withdraw any invested capital) becoming part of the Asirikuy Money Manager’s community. After this we then decide TOGETHER what systems/portfolios to run on the account and we create an “investors book” which Asirikuy money manager’s can use to attract investors into the PAMM (if they wish). Then after every trading period (which is a quarter on the PAMM) I transfer any performance fees from the investors of each individual Money Manager account into their FXOpen standard account. Of course, this requires you to trust that I will do the last thing (transfer performance fees) which I will certainly do.

      Of course, this PAMM structure with me as a head manager is intended to work as the first phase (perhaps first year or two ?) of the Asirikuy Investment Project. After we have a track record built on these PAMM accounts Asirikuy money managers might be able to open their own PAMMs using our community track record as a way to attract their own investors. As you see, my idea here is nothing short of helping the community, by becoming an Asirikuy Money Manager Asirikuy members will be able to benefit not only from their performance on the PAMM (which doesn’t pay any fees) but they will also be able to have a solid investor’s book with all the statistical characteristics of the account to show their investors. As it says on the post this is my way to help Asirikuy members become money managers, building a community of money managers and a community track record :o)

      I hope this answers your questions Carlos, please feel free to ask any other questions you might have :o) Thanks again for your comment,

      Best Regards,

      Daniel

      • Carlos Martínez says:

        Dear Daniel,

        thank you very much for your reply.

        Since this morning (GMT+1 local time) there is one additional member to the Asirikuy club.

        Best regards,

        Carlos.

        • admin says:

          Hello Carlos,

          Thank you very much for your reply and welcome to Asirikuy :o) I sent you your login information a while ago (please let me know if you didn’t get it or if you have any problem). I hope you enjoy the website and its contents a great deal !

          Best Regards,

          Daniel

          • Carlos Martínez says:

            Hi Daniel,

            I’ve noticed that the Asirikuy Investment Project is just launch! (congratulations).

            I looked for information in the web page on how to become a member of this investment project but honestly I was unable to find it. I don’t even know if the project is open to all Asirikuy members.

            Could you please give some info on this?

            Best regards,

            Carlos Martínez.

          • admin says:

            Hi Carlos,

            Thank you for your comment and congratulations :o) I have already answered your questions within the Asirikuy Community Forum. Make sure you watch both of the videos released last week about the project within the Asirikuy training section. Thanks again for your comment !

            Best Regards,

            Daniel

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