Rating: Empty Star Empty Star Empty Star Empty Star Empty Star
How to choose a good PAMM account
Previous 1 2 3 4 5 6 Next
jagzuk

Member Since Jul 17, 2015  9 posts JagzFX (jagzuk) Feb 12 at 12:01
Mnegamand posted:
Why do you even had a big need in them? Care to explain this to me or not? I am totally want to understand your idea, people are doing all that manually basically and that's it. I am trading for a very long time without that PAAM accounts already.


If you manage your own trades or algos, then this does not apply to you. However, if you are a signal-following then this might be useful

One of the factors in choosing between a signal and PAMM comes down to how much you are investing. For small investments (or expensive signals), the signal fees can eat up the profit of an account.

Here is a crude example:

Option 1: You invest $1000 in your own account.
You pay $30/mo for a signal.
In month 1 the account makes a 4% gain, so you are +$40 but you paid $30 for the signal, so you are left +$10.
In month 2 the account loses 1%. You are -$10 and you paid $30 for the signal, = -$40.
Over 2 months, despite the account being up 3% up, because of the signal fees you are 3% DOWN!

Option 2: Instead, you invest $1000 into a PAMM account.
There is no monthly signal fee. Instead, the manager gets a commission of 25% of the profits.
In month 1 the account makes 4%, you are up $40. the manager keeps $10 so you are up $30
In month 2 the account loses 1%, you are down $10, the manager gets nothing.
Over 2 months, you are still up $20 = 2% UP.

This is a crude example, there are further factors to consider, for example:

For PAMM you do not need to run any software, such as MT4/5, so you do not need to buy any algos, or pay for a VPS.
There is no issue with signal slippage, delayed trades, or other problems you can get with trade copying.
Many traders who provide signals also have a PAMM version of their account. It's worth asking them if you can't find it.

So, it comes down to doing the math and working out the best strategy for your own needs. I trade my own PAMM accounts and invest in the PAMM accounts of other traders. I also trade standard accounts.

Hope this helps someone.


Generate - Communicate - Elevate
jordonjamesson

Member Since Feb 13, 2020  3 posts jordonjamesson Feb 13 at 14:12
nasrul_poyo posted:
1st, no martingale. Then, see the drawdown with trade age more than 6 months at least.


why no martingale?

Taeusz1342354

Member Since Feb 12, 2020  2 posts Taeusz1342354 Feb 19 at 13:02
jagzuk posted:
Mnegamand posted:
Why do you even had a big need in them? Care to explain this to me or not? I am totally want to understand your idea, people are doing all that manually basically and that's it. I am trading for a very long time without that PAAM accounts already.


If you manage your own trades or algos, then this does not apply to you. However, if you are a signal-following then this might be useful

One of the factors in choosing between a signal and PAMM comes down to how much you are investing. For small investments (or expensive signals), the signal fees can eat up the profit of an account.

Here is a crude example:

Option 1: You invest $1000 in your own account.
You pay $30/mo for a signal.

In month 1 the account makes a 4% gain, so you are +$40 but you paid $30 for the signal, so you are left +$10.
In month 2 the account loses 1%. You are -$10 and you paid $30 for the signal, = -$40.
Over 2 months, despite the account being up 3% up, because of the signal fees you are 3% DOWN!

Option 2: Instead, you invest $1000 into a PAMM account.
There is no monthly signal fee. Instead, the manager gets a commission of 25% of the profits.
In month 1 the account makes 4%, you are up $40. the manager keeps $10 so you are up $30
In month 2 the account loses 1%, you are down $10, the manager gets nothing.
Over 2 months, you are still up $20 = 2% UP.

This is a crude example, there are further factors to consider, for example:

For PAMM you do not need to run any software, such as MT4/5, so you do not need to buy any algos, or pay for a VPS.
There is no issue with signal slippage, delayed trades, or other problems you can get with trade copying.
Many traders who provide signals also have a PAMM version of their account. It's worth asking them if you can't find it.

So, it comes down to doing the math and working out the best strategy for your own needs. I trade my own PAMM accounts and invest in the PAMM accounts of other traders. I also trade standard accounts.

Hope this helps someone.


Interesting strategy, thanks

Please login to comment.
Loading
Loading
EURUSD 1.08227 GBPUSD 1.29371
USDJPY 111.554 USDCAD 1.32648

Tools

Community

Reviews

Brokers

Platform

Support


Twitter |  Facebook |  Site Map  |  Terms  |   Privacy Policy
©2020 Myfxbook Ltd. All Rights Reserved.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results.