Risk Management

In order to mitigate risk in what is classed as a volatile market, we employ a team of fund managers who are monitoring the softwares and markets 24/5. Their job is to identify unusual or sporadic price movements and inform us if the software has reached an uncomfortable level of drawdown in a short space of time.  A decision will be made about the current open positions and if necessary, close these positions at a loss to preserve equity. We also have the ability to adjust aggression settings at any time and will do so in accordance with the economic calendar to account for volatile events such as NFP/ FOMC.

For our clients peace of mind, we are solely responsible for providing and managing the software and do not hold any client funds. We have partnered with a broker where all investments are held within their regulated liquidity providers. The notable two would be Barclays & UBS. This does not mitigate the risks involved with trading but does ring-fence the capital from any other external risk. Simply Wealth’s clients will be the only one with access to their investment in terms of depositing / withdrawing funds.

​Percentage Allocation Money Management or PAMM, is a specific software that allows one master trading account to be connected to multiple slave accounts so that the funds can be traded as one collective sum. It enables a money manager to trade investors funds without controlling them from an ownership perspective. The PAMM software sits on a broker’s platform and must be approved by the broker to run on an investors account. This provides a layer of protection in that the investors funds physically sit with the broker while the right to trade the funds is given to a selected money manager.