PAMM ACCOUNTS
PAMM

The acronym stands for

Percent Allocation Management Module) account is intended to raise investment capital for management by Forex trader.

PAMM accounts are a simple method for individuals to carefully select their money managers for forex trading. With this kind of account, investors profits with minimal involvement. However, PAMM accounts also carry the risks of capital loss, based on how your account manager performs when executing trades. After understanding the profit potential and risk, individuals should carefully select a PAMM account broker and money manager.
Nowadays investing in PAMM accounts is one of the less risky ways of earning passive income online. The idea behind the PAMM account forex for traders: is as follows: if a trader can trade profitably and has no capital necessary to gain enough profit, he can offer capital management service and earn a reward in the form of percent of profit gained thereafter.

PROS & CONS

PAMM ACCOUNTS

CONS

If a broker doesn’t enable an investor to set the maximum loss limit for PAMM account, the investor’s loss can hit “-100%” value, which means an absolute drawdown.
A relatively closed nature of PAMM accounts system: investor cannot often study a trading style of PAMM manager in details
The idea behind the PAMM account forex for investor: Investor, who has no deep knowledge in Forex trading (How to Start Trading Forex) can invest own funds in profitable traders and earn money on it.

PROS

A relatively closed nature of PAMM accounts system: investor cannot often study a trading style of PAMM

PAMM broker acts as an independent guarantor that obligations of a PAMM manager and an investor are to be fulfilled. It results in the following advantage.

Profitable trader may receive profit from management of both own and investors’ funds

Trader (PAMM manager) may not take money of investors and go away. Although the capital of investors is managed by PAMM manager, he cannot withdraw it.

PAMM broker provides a real history of a PAMM account. It can be said that a brokerage company acts as an independent service monitoring PAMM accounts, since it provides access to trading statistics of PAM manager. Selection of PAMM manager can take literally several minutes owing to easy-to-use interfaces of ratings and filters developed by PAMM brokers

Ease of investing in PAMM accounts of various PAMM managers within a single service. Investor can deposit his account once and allocate his capital among several PAMM managers.

PAMM manager risks not only the investors’ money, but also his own capital. Any investor can view PAMM manager’s equity thanks to PAMM brokers. Sophisticated investors keep away from PAMM managers, who have a small amount of own funds on their accounts.

An investor may diversify risks by allocating capital among several PAMM accounts.

You can buy and sell bitcoins quickly and easily, and begin to learn about the way the market tends to react. You can place orders in real time (buying and selling at the ‘spot’ price) and set limit orders, which execute when the price reaches a certain level. However, Bitstamp is not designed for advanced day trading. Other exchanges and platforms have more advanced tools that allow you to use more sophisticated trading techniques and amplify your gains – and your losses. Use them with caution!

M manager in details
The idea behind the PAMM account forex for investor: Investor, who has no deep knowledge in Forex trading (How to Start Trading Forex) can invest own funds in profitable traders and earn money on it.

How to

choose a manager for PAMM investment?

WITH A RATING OF PAMM MANAGERS.

HOW TO SELECT THE BEST PAMM ACCOUNTS

Bitcoin isn’t fiat currency, meaning its price isn’t directly related to the economy or policies of any single country. Throughout its history, Bitcoin’s price has reacted to a wide range of events, from China’s devaluation of the Yuan to Greek capital controls. General economic uncertainty and panic has driven some of Bitcoin’s past price increases. Some claim, for example, that Cyprus’s capital controls brought attention to Bitcoin and caused the price to rise during the 2013 bubble.

PAMM

Account age

First, I filter PAMM managers by account age, while selecting PAMM accounts with a broker’s rating. I think it is the most important criterion of the selection. The first reason for thinking so is that it excludes the possibility of a plain luck of PAMM manager.

The second reason is that an account having a long history is amenable to more deep analysis. We recommend considering PAMM accounts aged no less than 6 months. New PAMM accounts opened by proven PAMM managers can be regarded as exceptions; at that, history of their old accounts should be also analyzed.

Maximum

drawdown criterion

There are many tools to help you profit, and minimize your losses. Two you should learn about are limit orders (which execute a trade at a certain price, whether you are there or not) and stop-losses, which can be used to lock in profits when the price changes direction after moving in your favor. You will also learn to read the market by keeping track of different indicators. Technical analysis is an extremely complex discipline, but you can start to understand the underlying trends and forces that shape the market by learning about volumes, moving averages of different kinds, and different patterns that emerge in the charts.

PAMM

account profitability

You should consider potential profitability criterion only after you have filtered PAMM accounts by their age and maximum drawdown level. Selection of accounts by their profitability depends on an individual approach of investor. We can only say that the profitability criterion should be considered coupled with the maximum drawdown criterion (what is Drawdown), since in case of stratospheric profitability risks increase to the same level.

Accounts, where ratio of maximum drawdown to profitability is not higher than 1:3, show the best performance: i.e. the maximum drawdown doesn’t exceed 15% in case of 5% monthly profit. Few PAMM accounts meet the condition and certainly deserve investors’ attention.

Equity of PAMM manager

You should pay your attention to equity of PAMM manager, while selecting a PAMM account. It is obvious that the higher is equity value, the more own capital PAMM manager risks during trading. The value should be considered coupled with a total balance of PAMM account (Equity of investors + Equity of PAMM manager). At that, it is better, if equity of PAMM manager amounts to no less than 10% of total balance.

Equity of investors

The logic behind it is simple: a large amount of funds being under management implies a high level of investors’ confidence.
Investing in PAMM accounts is available in an automatic mode. Profits and losses are allocated among investors and PAMM manager per the percent defined by the manager in PAMM manager offer. Simply speaking, the offer is an agreement regulating relationships between investor and PAMM manager. The profits or losses resulted from a trading activity of PAMM manager are allocated between investors in proportion to their percentage share.

WITH A RATING OF PAMM MANAGERS.

HOW DO PAMM ACCOUNTS WORK?

The Coin-Bank PAMM Account is an investment service that gives investors the chance to make money without trading themselves with Forex and allows managers to earn additional income for managing clients’ accounts.

An account manager opens a PAMM Account, investing a certain amount of his own capital known as the as the Manager’s Capital. He won’t be able to withdraw from this amount (an incentive for the manager to explain the risk in his trading). Next, he creates his portfolio, in which he lists the terms and conditions for the investors. This includes the percentage of their share of the profit they will pay him in compensation.

Investors select the account they would like to invest in by choosing the best rated PAMM Account which is found under Ratings

The manager begins trading on the account using both his personal capital and the funds of his investors. If the account has profit or losses, they are then divided between the Manager and the Investor, depending on their share in the account.

Want to invest funds in a PAMM Account or become a PAMM Account manager?

ACCOUNTS TYPES

Bronze

LEVERAGE X1

Personal Account Manager

Up to

1 Trading session week

5000
OPEN ACCOUNT
Silver

LEVERAGE X2

Personal Account analyst

Up to

2 Trading sessions week

15000
OPEN ACCOUNT
Gold

LEVERAGE X2

Senior Account analyst

Up to

3 Trading sessions week

25000
OPEN ACCOUNT
Platinum

LEVERAGE X3

Senior Account Chief Analyst

Up to

2 Trading sessions week

50000
OPEN ACCOUNT
Diamond

LEVERAGE X5

Senior Account Chief Analyst

Up to

4 Trading sessions week

150000
OPEN ACCOUNT
vip

LEVERAGE X7

Senior Account Chief Analyst

Daily Signals

350000
OPEN ACCOUNT