How to choose a good PAMM account

AdamCantor posted:
pamm accounts mostly use the martingale strategy which yes is genius but also can cause major loss too. do soem research on that first then decide if pamm is right for you

Nope
Pamm does not mean martingale, where did you hear that?

At Fibo Group there are some good PAMM accounts.

Look for accounts :
Over 1 year
Total profit over 50%
Maximum drawdown below 40%

Always filter your research because there are too many offers and some go crazy with the drawdown or simply have bad results.

PAMM accounts are trendy among investors who do not have time to study the ins and outs of trading or lack the essential trading knowledge. In this condition, an investor can pick a skilled trader to manage their money for them. A trader gives investors with an offer, which standardize the business relationship between a trader and an investor and indicates a percentage charged by a trader.
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Anthony Constantinou CEO CWM FX

I think PAMM-broker should be verified and has a goode reviews. It's better to get in touch with someone, who already use such account and ask questions directly, also PAMM-broker should be stable and show a good results. So it's all about googling to find info about account.

Has anyone actually found a good PAMM account? I have tried a few and they have all had terrible performance

@swimmable Check Darwinex.They are even better than PAMM services,because traders accounts are supervised by company Risk Manager algos.There you can find stable traders with years of trackrecords,just make sure you avoid investing into recently migrated accounts onto Darwinex platform (anything with less than 1 year of verifiable trading AFTER migration is very risky).Also keep in mind that Hedge funds who give 20% Returns to investors are rare and be happy if you find traders who can do 30-40% per year without crazy risks-martingales,grids,averaging down...Darwinex offers also leverage 2:1 for investors,so you can pick somebody who is really stable and responsible with 20% per year and double that.
RiskManager algos prevent total blowout if you choose bad trader,but 30% DD can happen,while 10-20% DD is normal.
They have a forum there,where you should get good info about platform and individual providers and sometimes contact them directly.It takes time to get familiar with their ecosystem.I am there since the beginning of this year.Hope this helps.

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.

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.

nasrul_poyo posted:
1st, no martingale. Then, see the drawdown with trade age more than 6 months at least.

why no martingale?

sjkhaushu posted:
Here are my rules:

- verified trading history
- no cent accounts
- broker ragulated at FCA or ASIC (if its not regulated, the results can easily be fake)
- no extreme scalping (scalability, liquidity, slippage and latency issues. When trading larger amounts the performance drops significantly)
- no grid or martingale strategies, they all fail without exception
- exact rules of the strategy have to be set so investor can recognize if something is out of ordinary
- every trade has to have a SL
- I much prefer automated trading to manual (no human factor) but its not a hard rule, just recommendation
- Max DD can not be more than two times higher than average monthly profit (e.g. 10% DD, 5% avg monthly profit)
- smooth equity/balance graph. If out of 12 months there are 10 with 2% avg profit and 2 months of 20%, the results are too volatile for me. It usually means that the trader went off script and thats a very bad sign
- equity has to be as close to profit line as possible. Never ever invest in accounts that have a great looking profit line but the equity is always below it. That means that the trader is holding on to bad trades and only closing the profitable ones. It is only a matter of time when those accounts will blow up, that is a guarantee.

If you follow those rules, you will be fine. The problem is there are only a few accounts that fit this criteria so you have to look very hard to find them😉

I agree with yo

For me; long term trading history is mandatory; and then the trading result! Besides, Broker is another important parameter here!

This video might help

When I came across such a question, I looked at the culinary experts of experienced traders and made my choice.

Before you choose a PAMM/MAM account, the first and foremost thing is to see the requirements for the account like what they are demanding and what they are offering. Secondly, you should consider the profit percentage, their conditions to operate the account and their trading results.

I do not trust PMM. The reviews about it arre very negative. You have obviously chose the wrong broker. There are a lot of things that you can check about ypur broker to confirm if they are the right one or not. Alwya make sure that you do your research. You should not be so vague in your research.

fxdaivid posted:
This video might help



Thanks for the tips

On the contrary, I trust a PAMM account because in my opinion it is one way to optimize profit without the direct trading process. How to choose a PAMM account? The answer is very simple for me. It's all very individual and you just have to take and try different accounts, check them, test and compare financial results.