What is PAMM?
PAMM means Percent Allocation Money Management or Percent Allocation Management Module.
If you are an investor that wishes to invest your money to be managed by a manager to trade for you and make profit for you, then you will register with the broker of your manager.
The broker receives your money from you and then transfer it to the account of your manager and assign you a percentage of your profit which is equivalent with the money you invested.
When ever a profit is made from your money and that of other investors, the percentage of the money you deposited will be automatically yours.
Other investors, who invested will also collect the percentage profit of their deposit from the same PAMM Account.
One PAMM Account can accommodate as many investors that the Manager wishes.
It is noteworthy that Investors don’t interfere in the business of making money for them rather are waiting for their profit which they withdraw from time to time.
They can decide to reinvest their profit by which their percentage will increase as well.
The PAMM Account Manager who make profits for Investors receives percentage from the profit he made for investors, then if he made an investment in the same PAMM Account he manages, he also receives the percentage profit of his deposit.
There are those who also get benefits from PAMM Accounts. They are called Partners.
Partners receive certain percentage from the profit made from PAMM ACCOUNT. They refer investors to a PAMM Account thereby getting a stipulated percentage of profits made in the trade.
So, a Broker, a Manager, an Investor, and a Partner all benefits from PAMM Account.
Let’s give an example with the following diagram.
Investors Deposit to PAMM Account
Investor A deposited $30,000 (30%)
Investor B deposited $5,000 (5%)
Investor C deposited $15,000 (15%)
Investor D deposited $50,000 (50%)
TOTAL from investors TO PAMM Account which Manager uses to trade is
= $100,000 (100%).
The manager now made a profit of $12,500 at a particular period for the investors.
He has stipulated 20% of the profit for his charges for trading on their behalf, probably with that of his partners, being 20/100*12,500 = $2,500
Then, $12,500 -$2,500 = $10,000 will be shared to the investors according to their percentage deposit.
Investors Profit Sharing of the $10,000
A 30% = $3,000
B 5% = $500
C 15% = $1,500
D 50% = $5,000
That’s the explanation.
Their are many PAMM Account managers you can find with many brokers but you must make a wise selection of those who will not only make profit for you, but can preserve your capital.
An investor can decide to collect back his capital at any time.
In summary PAMM Account is an investment service that give investors the chance to make money without trading themselves in forex and allow managers to earn additional income for managing clients account.
I am looking for investors for my PAMM account.
It is operating only fully EA without human emotion or desire.
The most priory factor is safety!
EA does not use risky strategies such as martingale, grid as well as HFT scalping, etc.
Again, SAFETY is the most important!
It is suitable for long-term investors. (minimum 6 months)
Obviously, much better than a deposit on your bank.
As you can see from the title, my EA(Reislaufer, which means Swiss mercenaries) will trade on EUR/CHF only.
Due to low volatility and less volume, it will open trade during the Asian session.
EA is using a Trailing Stop which is more effective.
All opened positions must close in a day.
Leverage – Up to 1:100 (current 1:25) // Considered under ASIC or FCA regulation.
Auto Lot – 0.01 (ex $1,000 – 0.1lot
$10,000 – 1lot
$100,000 – 10lot )
Trailing Stop – Enable
Monthly Profit – 10% ~ 30%
MDD – Below 20% // (current 12.93%) – ACHIEVED
Profit Factor – Over 1.2 // (current 1.72) – ACHIEVED
Recovery Factor – Over 1.2 // (current 3.70) – ACHIEVED
Sharp Ratio – Over 0.5 // (current 0.21) – This is because of Swap fees, as I mentioned above, EA will open trade during the Asian session which means it may charge Swap fees, which is an effect on the Sharp Ratio. However, I am trying to figure out to get more advanced performance.
(Test environment: MT5)
Basically, the MT5 result is more realistic and trustable than MT4 due to it is including all the real circumstances such as real-time spreads, etc…
If you are interested in my PAMM project,
please do not hesitate to contact to me