I consider diversifying my investments and have studied managed forex
account offerings for a while. I have heard that there are traders
around who did manage generating net profits for the investor of over
300% within last 12 months. Couldn't find one myself yet. Such trader
should be prepared to provide contact to his broker (for confirmation
of profits)and be able to show a proven track record.

I recently hit on www.forex-traders.info where they offer forex managed accounts.

They have several outstanding traders with at least one among them
who made over 300% within last 12 months. They work with both
IFX Commerce in Boston and FXUC in Israel. They tell you on the
website how to contact their brokers.

My 2 cents worth, If someone was able to generate a 300% profit - THEY
WOULD NOT BE MANAGING YOUR MONEY!

You might considering reviewing the returns for all managed accounts.
The average return of all these accounts will be pretty close to what
you will make.  I can assure you they do not come anywhere close to
this return.  The manager that was able to get the 300% return was
lucky (and he took on a crap load of risk).

If you are dead set on this manager -- Do not look at his return on
account, look at his MAXIMUM open trade drawdown and Maximum drawdown
across all HIS TRADES. Look at them individally and you will see the
one or two trades that generated that return.  And you will see how
UNLUCKY he was on the other trades.

Then recalculate the return on account without those couple of winning
trades.  And this manager's return will fall within the range of the
average manager.

The point I'm making with last sentences is that if this manager is
that great the 300% return should hold up, if he just got lucky with
one or two choice and made bad or average choices on his other picks
then he is average manager.

My managed forex account lost 40% in four months. Not sure what would
happen next, I cut bait. Of course, I admit I bought into the sizzle,
that the manager was averaging increases of 6% a month. I'm not sure
what to think at this point?

I have a similar question that I submited on a different compnay. Hey
guys you might be interested in the asnwer that I get for this post.
See

http://answers.google.com/answers/threadview?id=475489

Did not expect to start such kind of discussion with my comment #1. 
ewellness-ga only asked for a trader *who did make over 300% net", no
matter whether he was just lucky or just very capable so he reached
this result without luck. (if this could ever be done without luck).
Sure, if he continues on that level he is good, if not he was only
lucky. But again: nobody asked that question. So it would be enough to
answer the question with having found only "lucky" traders.

As for this: My 2 cents worth, If someone was able to generate a 300%
profit - THEY WOULD NOT BE MANAGING YOUR MONEY!  this makes no sense.
Why? If I can make 300% profit as a forex account manager and have
only a small capital on my own I still can make much more managing
clients' money (with 15% profit share- I found out) than trading my
own small amount alone. Whether I manage 10,000 or 10 millions the
only difference is the number of lots I invest or the size of options
I write. This trader does not buy options, he knows better.

As for this one: "(and he took on a crap load of risk)":
I know enough people whos mantra is: big profit only with big risk.
Those who know better have found a way in between. 
I revisited www.forex-traders.info and found they had just introduced a new
FX Compass account: with investing never more than 6% trader made over
+70% within 8 months. Luck? Maybe too. But maybe he also had his
portion of bad luck which balanced his luck ;-)But this trader
obviously knows his stuff and how to keep risk low. You may go and ask
their broker in Boston for proof.

(this guy does of course not buy options)
So I would rather trade as much captial as possible for a while in
order to be able to stop then doing something else.

forex123,  Just so I understand, you believe that it is possible to
make 300% a year at low risk and you also believe, based on the
posting to me, that the person asking this question should go ahead
and invest some of his money with this guy?  hmmm.... Okay

The promise of huge gains is the line that ALL brokers (are you a
broker?) use to get people to invest in these types of managed funds.
This sales pitch is as old as dirt.  Look at this from the broker's
point of view, HEY I have a guy who made 300% last year.... Do you
want to invest your money?  Hell Yeah....  Mr. FastTalkinBroker will
bring in millions and millions of dollars.  And tons of
Commissions..... and more commissions....

And then guess what happens?????

If Mr. 300% Manager had some SECRET TECHNIQUE that only he used, do
you really believe that he would tell the world?  No. Do you believe
he would tell Brokers!!! Salemen, no less!! HELL NO.  He would keep it
to himself and invest his small amount of money, or he would borrow
it, or he would get his parents, brothers, sisters, aunts, uncles
money and make them and himself very, very, very, very rich.

There are no secrets - now I'm going to share a well known secret with
you - one that you must not be aware of or you would not have posted
the rebuke you did.

All trading systems fail.  Now the secret:  Are you ready....??  Once
a trading pattern is recognized, and it does not matter the pattern,
it is driven from existence.  The pattern must be profitable, yes?  So
other really smart folks see the pattern and want in on the profit.
They build systems to take advantage of it.

So Mr. 300% Manager builds a trading system, the best ever built.  And
he makes 300%.  Guess what, his great system had to generate profit
based on the patterns in the market - really smart guys come along and
say: "hey lookie here" and BANG!! the best trading system ever built
goes back to the drawing boards.

Are there systems that work?  Yes.  Are there systems that can
generate a return of 300% once in a while?  Yes.  Will Mr. 300%
Manager do 300% next year? NO!  But, Mr. 300% Manager will more than
likely fall to the average return of all fund managers. But, maybe NOT
- Why is this? Because Mr. 300% Manager now has all these brokers
selling his fund and now he has crap loads of money to invest....
Problems problems problems..... and a below average return..

 
And guess who made all the money????  BROKERS!  Salemen!  And the
person who asked this question, will, if he takes your rebuke of me to
heart, will find out the ugly truth about managed funds.  Yes, some
make money but, some DO NOT!

If you want to "play" with managed fund, I suggest that you "play"
with money you can afford to be without.  Or even better use forex123
money and split the profit - 150% each..

http://www.cftc.gov/enf/enfforex.htm

posted by rmanet

.....visit this site - forex traders - as a current and former
securities and registered investment advisor principal - use the
internet and frankly often don't get their internet postings,
performance numbers and websites validated by SEC, NASD examiners
because of non-disclosure during examinations.

In other words - use money you're prepared to put at 100% risk, don't
believe results unless they are local, you've met them, and talked to
clients - the referrals given won't typically disclose results, but
it's always informative.

One has to be careful when surfing the web for FOREX traders. In my
research I have found more FOREX related sites that claim the world
and have no backing documentation. There is a reason for all this, the
FOREX markets have much less regulatory actions take place regarding
them. The reason, people are afraid that more regulations would hamper
the true value of trading FOREX etc. Compare the regulations in the
commodity trading industry to FOREX. Night and day. If you want an
example of this in action, visit every site on the front page of
google when you type in commodity trading into a search engine. Then
compare that to the top resluts for FOREX. Bottom line, FOREX trading
sites are able to make more outlandish claims than that of nearly any
other trading index.

My advice to you is to do your reserach, perhaps lock into a company
that trades both commodities and FOREX, nearly all of them due. (I
have used many sites, but currently I trade through International
Futures Group, http://www.ifgfutures.com) The reason I like trading
with IFG is they really promoted the ideal that I need to educate
myself as well as jumping into trading.

That being said, do your own research, and make the final decision.
It's your money after all.

i have had much success with www.fibvortex.com

there profitable trades are posted daily - you can also view their
trading live with their webcams and in their chatroom.

I agree that you would have to take a close look at the maximum
drawdown. Most money managers look for a maximum of 2.5% If this guy
made 300% without having a drawdown, he really is a genius. Can he do
it year in year out?

Last year was very mixed for currency fund managers; Because of the
lack of trends until August, most fund managers lost money (getting
'whipsawed') and then the dollar lost value fairly dramatically
between late August and December.

There was a 10% or so movement, so if our man was leveraged 30:1 and
just did this one trade last year, he could have made 300%. The
important thing to remember is that you can't take out more than the
market gives. In other words, no movement, no profit.

Personally, I would have been very satisfied with 50% and avoid the
exposure or the risk that the market would eat into the profit.