PAMM
PAMM
Percentage allocation money management, or PAMM, is another name for pooled money forex trading. Investments are allocated based on investor preferences to the qualified trader(s) / money manager(s) of their choice. They may manage multiple forex trading accounts using their own capital or a pooled sum of money with the intention of generating profits.
Attendees
- A foreign exchange broker/ a foreign exchange firm
- Traders and money managers
- Investors
Types of Accounts
Master
For managed accounts, a different rate is applied according to the funded amount (to determine the rate, all funds are converted into US dollars based on market rates). According to the PAMM system, when, for example, a trader (money manager) decides to purchase 10 million EURUSD, the order will be distributed amongst the managed accounts according to the ratio. Profit and loss are components of each managed account.
Investor
A dedicated PAMM Investor account is created separately from your personal MT4 account to ensure money is not diverted from personal or PAMM strategies. With the PAMM Investor web interface, desktop computers, smartphones, and tablets are easily accessible.
Using this URL, you can access your PAMM Investor account: The PAMM Investor receives a daily report via email for each PAMM subscribed to. Subscribers to a PAMM do not have to download the MT4 platform or any other software to trade on their own account. Innovative and advanced reports and statistics include:
- Leverage history chart.
- The volatility of return on a daily basis.
- Factors contributing to recovery.
- Calculate the geometric average.
- Sharp ratio
Technology
PAMM that are created with regulated brokers are safe in terms of technology. The downside of PAMM accounts is that if the fund managers fail to pay attention to risk, big drawdowns, or poor trading decisions, they can be unprofitable.
