PAMM Accounts - are a diversified basket of alternative investments either cryptos, metals, or forex professionally managed by a trader.He could use both automated and manual trade signals for making trade decisions.Every investor is linked to a Master Account that is connected to their sub account which distributes profits and losses based on the percentage of your money in the fund. This allows manager to trade multiple accounts at the same time while taking advantage of market opportunities.INVESTORS have access to their account 24/7 for complete transparency on their money and can watch in trade in real time as it trades so your always in touch with your money. These accounts are managed by professional traders and allows them to raise or lower the risk on every trade according to their funds objectives. Managing drawdowns and equity swings based on investors risk appetite.
WE believe that everyone has a different risk tolerance when they inevest money based on their own comfort level of equity swings and drawdowns. We also believe the most determined factor for controlling equity swings and draw downs is the lot size, gear ratio, or leverage used against the acount value while trading.The higher the lot size as a percentage of acount will have a direct correlation with account values, risk/reward, and equity swings as a percentage. Below is example of risk based on leverage.
Percentage Allocation Money Management
Risk Tolerance Choices
Conservative
Leverage Per Open PositionMinimum 1:1 Maximum 1:4Risk 25% Reward 100%______________________________With trade entry of 1:2 leverage which means trading 2X your money would be considered conservative because it will minimize drawdowns or equity swings to 2% per 100 pip move on trades. If we have 4 open positions our max loss using a 100 pip stop is 8% of equity which is minor when considering this assumes every trade is a loss. We believe with this low leverage you can targeting double digit returns close to 100% over the course of trading year.
Moderate
Aggressive
Leverage Per Open PositionMinimum 1:5 Maximum: 1:9Risk: 50% Reward: 200%_________________________________With trade entry of 1:5 leverage means 5X your money would be traded and considered moderate because it will require investor to tolerate higher equity swings as a percent but also target much larger gains. With 4 open positions using 100 pip stop means you must be willing to risk and tolerate a 50% draw down or loss but can target much higher returns over 200% with successful trades and will to accept higher risk.
Leverage Per Open Position1:10 or greaterRisk: All Reward: 400% or greater_____________________________________With trade entry of 1:10 or higher which means your trading 10X your money would be very aggressive and reqire investor to tolerate deep drawdodwns over 60% with 6 open positions. This type of account or trading requires a lot of greater tolerance but if done correctly can produce returns or triple your money or total loss of account. This type of leverage trader will be targeting much higher returns because higher risk higher reward and only good for accounts that can suffer a total loss of account.
Benefits of Pamm Accounts
- Professionally Traded
- Sophistiticated Risk Management
- Superior Execution
- 100% Transparency
- Low Expenses
- Predesigned trading Plan
- Immune to Economic and Political Uncertainies
- Take Advantage of Any Market Scenario
- Short Term Risk More Predictable
- Diversification is Form of Risk Management
- 24 Hour Account Access
- Lowest Commission of any asset Class
Currency Pairs
Base = 1 / Counter is Variable
Direct Pairs: Eur/Usd, Gbp/Usd goes up dollar weakerIndirect Pairs: Usd/Jpy, Usd/Cad goes up Dollar Stronger
Lot Sizes Forex
Example Leverage $10,000 Account
Standard: 1.0 = $100,000 Notional = $10 / pipMini: 0.10 = $10,000 Notional = $1 / pipMicro: 0.01 = $1000 Notional = .10cts / pip
Bitcoin: 1.0 Lot = 1 Bitcoin = $1 point valueSilver: 1 Lot = $100,000 = $50 / Penny or $5,000 / $1
Bitcoin: 1.0 Lot = 1 Bitcoin = $1 point valueSilver: 1 Lot = $100,000 = $50 / Penny or $5,000 / $1
1 Standard lot = 1:10 leverage Trading $100,000 vs $10,0001 Mini Lot = 1:1 or zero leverage Trading $10,000 vs $10,0001 Micro Lot = 0.1: 1 Leverage Trading $1,000 vs $10,000
Equity Swings
A fluctuation in the value of an asset or account. This term commonly refers to a situation in which the price of an account experiences a notable change over a short period while holding open floating position. Whether it is up or down the control of these swings is key to capital preservation and must be mastered by the trader in order to have complete control of their accoiunt and market movements.
Draw Downs
These drawdowns occur on an everyday basis due to market actidvity and tmount of open positions in market. The are controlled by using lower leverage or lot sizes because the higher the gear or leverage the greater the drawdowns.Always know your risk and control it with discipline when trading to minimize the stress of the equity swings / drawdowns.