A PAMM account is a unique way to make money on the Forex market without having any special knowledge and skills, which allows you to get income from several tens to several hundred percent per annum on the invested funds.
You, as an investor, use the rating to independently choose one or several managers and get the opportunity to increase your capital without taking part in trading on the Forex market.
• full control over investments;
• automatic distribution of profits;
• the ability to invest in several PAMM accounts;
• the ability to replenish the account and withdraw funds at any time;
• rating of PAMM-accounts with different criteria for choosing a Manager;
• The remuneration to the Manager is paid only from the profit, and the investor's income is often several times higher than the bank interest.
The right choice of a broker and a PAMM account will help you both increase your capital and preserve the mass of nerve cells. At first glance, the selection algorithm is not complicated, however, it is not easy to take into account all the subtleties and assess the potential of the manager, predicting his (respectively, your) future incomes, in practice.
• Reliability. The company has been in existence for at least 3-5 years, licenses for brokerage activities are available, activities are regulated by KROUFR (Commission for Regulation of Relations of Financial Markets Participants).
• Scale. The presence of offices in different regions, the size of the client base, conducting training seminars, the ability to use a demo account, the functioning of a private forum, information about the leading employees and founders of the company.
• Support service. The more contacts you are offered (physical address, phone numbers, e-mail, skype, online chat, your own forum) and the more adequate the company's employees, the more reliable and secure your cooperation becomes.
• The period of existence of the PAMM account. In a short period of time (3-6 months), managers can show fantastic results. Choose an account with a lifetime of at least 9 months. This is the period of time for which you can study how a trader trades, how successful, disciplined and whether he adheres to his strategy.
• Loading a deposit. Normally, the loading of the deposit should not exceed 15-20%, maximum 25%. If jumps are visible in trading, for example, up to 80-90%, this means that the trader is not very disciplined and takes increased risks. A short series of losing trades can lead to premature separation from the deposit.
• The level of the deposit drawdown. It is necessary to look at how large the drawdowns were, how long and how long the manager got out of these drawdowns, whether there were similar drawdowns in the past, how big such drawdowns were. If before that the maximum drawdown for the day was 10-15%, which is quite normal, and then suddenly there was a drawdown of 40%, then this is a reason for serious thought.
• Profitability in the last 2-3 months. If there has been a stable increase in the deposit lately, then the trader's strategy is working and it makes sense to invest in this PAMM account. It's another matter if in the last 2-3 months the deposit decreases, in this case it is reasonable to wait and look at the development of the situation.
• Own capital of the manager on the PAMM account. A very important indicator. The larger it is, the more responsible the manager will be related to management, because most of his own funds are involved in trading. A reputable and experienced manager's personal capital, as a rule, is measured in several (or even tens) thousand dollars / euros.
• Manager's offer. Be sure to study the terms of your potential cooperation: the percentage distribution of profits, the possibility of premature withdrawal of the deposit, etc.
• Feedback from real investors. When choosing, it is necessary to take into account the feedback from investors about the Pamm accounts you have chosen, which you can find on the Internet or on the company's forum. On the forums, you can even catch the human factor, for example, see how the manager communicates with his investors and answers their questions.
It is worth noting that there is no proven formula for diversifying deposits in PAMM accounts. As practice shows, at least 5-6 Pamm accounts are sufficient for successful investment.
When composing a PAMM portfolio, one important indicator should be taken into account - the aggressiveness of trading. This parameter is calculated based on the maximum daily profit and the maximum daily loss. Information about the aggressiveness of the PAMM account can be found in the "Indicators" tab of the PAMM account monitoring.
All PAMM accounts can be conditionally divided into three categories: aggressive (the indicator is 4 or 5), moderate (the indicator is 3), conservative - (1 or 2). When composing your portfolio, consider this factor and your investment goals, as well as the level of risk that you can afford.
There is a sufficient number of managers who conduct their activities at a truly high and professional level, have a healthy psyche and do not expose their investors' capital to unnecessary risk.
The passive strategy is more focused on long-term investors. With this option, the investor chooses only the entry point to the PAMM accounts, sets the limit for losses and periodically revises his portfolio, making some adjustments to it, if necessary.
An active strategy is more suitable for investors with a speculative attitude and involves the choice of both the entry point to each PAMM account included in the portfolio and the exit points from them. Here the investor tries to catch the progressive movement of the price and exit immediately, having received his profit.
• Register in your Personal Account.
• Open a managed account and deposit funds.
• After reviewing the rating, choose a PAMM account.
• Invest funds in your chosen PAMM account and ... make a profit.