PAMM (in English Percent Allocation Management Module, PAMM - percentage distribution management module) is an account for work on the Forex market, which is under the control of a trusted manager. Actually, this manager and manages his capital, as well as the capital of investors.
In the life of every moneymaker there comes a time when a serious amount is already in the bank account and you want to increase it. But the more serious the amount, the more seriously you begin to treat the choice of the investment object. Exactly at this moment PAMM accounts come to the rescue.
Besides the fact that the Forex market is risky, it is also incredibly profitable. A competent manager can bring a stable positive interest for many months. How do you like the 200 or 300 percent per annum? And it happens even more!
All that used to hold me back from contributions to PAMM accounts is the probability of total loss of funds during a particularly unsuccessful game of the manager. But as practice shows, with the right choice of a trader, this happens quite rarely and due to force majeure circumstances.
For example, recently one well-known manager has 9 positions for a couple of days. Most investors panicked and took their capital. After a time, all positions were closed by the broker automatically, with the result that the manager leaked all the money. As it turned out, the person had an internal hemorrhage and because of this, he physically could not close the position. This manager lost $ 600,000 of his capital. It is not known how after this you can recover.
But a couple of months ago I came across a new type of PAMMs - PAMM 2. 0 , with partially insured risks. Usually 50% of the invested funds are insured.
Quote from the site of a forex broker who invented this PAMM 2. 0.
The manager has the opportunity to set in the offer a level of responsibility that is acceptable to him, for example, 50%. This means that the investor risks only half of the funds that he sends to the PAMM-account of the manager. For example, if an investor places $ 5,000 on a PAMM-account, he can lose no more than $ 2,500 as a result of unsuccessful trading, and he will get the second $ 2,500 back with any trading result. This is guaranteed by the capital of the manager, who will serve as a source of repayment of the investor's losses in the amounts specified in the offer in case of financial losses.
The amount of investment that the manager can make is calculated in such a way that the manager's capital cannot be lower than the amount that may be required in case of the need to fulfill obligations to compensate for the client’s losses.
By the method of long reflection and reading available for the mere mortal literature, I came to this scheme.
I talked about this with investors with experience. They assured (and showed a screen of stats 🙂) that since PAMM 2. 0 appeared, they have not had a single unprofitable month! If even one of the managers merges everything, then half of the investment will return. And then the profits of other managers significantly reduce losses, and even bring in the next plus.
In practice, the use of this strategy has allowed me to stay in the pros every month.
In PAMM 2. 0, the manager is much more responsible for his capital and you are guaranteed that all the money will not burn. In this regard, the risks of a significant loss for you are much less.
Here the situation is simple. As far as I understood, PAMM 2. 0 exists so far only in all of the fx-trend. They created it. Of all the offers, I chose several offers.
Also, when choosing a manager, pay attention to the maximum drawdown. Very useful option.
Well, among the simple PAMM managers, I have just chosen Sven, Zhuk and Veronika again 🙂
At the moment, I want to distribute non-trade risks and will invest in PAMMs from other brokers. Let's see what happens.
Here is an example of my income for the second half of 2011.
Any my referral who invested at least $ 100 in PAMM, feel free to write me on the mail 🙂 I will help with the selection of an individual investment scheme that will best suit the needs of the investor.
And now for the promotion. The referral, who earned the largest amount on investing in PAMM accounts for the month, receives $ 100 from me personally.
I suggest everyone to leave their reviews on investing in PAMM-accounts. I think it will be useful to those who have not yet decided.