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What is PAMM?

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lazymjs
159
lazymjs 2013.10.01 22:10 
What is PAMM and where can I find information on it?
Ken McCormick
789
Ken McCormick 2013.10.01 22:47  
lazymjs:
What is PAMM and where can I find information on it?
PAMM solution allows the trader on one trading platform, to manage simultaneously, unlimited quantity of managed accounts.
Alain Verleyen
Moderator
30688
Alain Verleyen 2013.10.01 23:06  
The Percent Allocation Management Module (PAMM) is a technical solution provided by brokers and allowing clients to have their accounts managed by a trader appointed by them on the basis of a limited trading power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results (trades, profit and loss) are allocated between managed accounts according to the ratio.

Example of trade allocation:


Lets assume that there are 3 managed accounts under trader's management:
  1. USD account with deposit of $ 100.000 and ratio 9,3%;
  2. EUR account with deposit of € 400.000 and ratio 49,5%;
  3. GBP account with deposit of £ 300.000 and ratio 41,2%;
Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate).
 
In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example the first managed account will get position LONG 930.000 EUR/USD, the second - LONG 4.950.000 EUR/USD and the third - LONG 4.120.000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices. 
FOREX*PAMM: managed accounts
  • Better
  • forex-pamm.com
FOREX*PAMM: Managed Forex Accounts - high return, low risk
lazymjs
159
lazymjs 2013.10.02 03:18  
angevoyageur:
The Percent Allocation Management Module (PAMM) is a technical solution provided by brokers and allowing clients to have their accounts managed by a trader appointed by them on the basis of a limited trading power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results (trades, profit and loss) are allocated between managed accounts according to the ratio.

Example of trade allocation:


Lets assume that there are 3 managed accounts under trader's management:
  1. USD account with deposit of $ 100.000 and ratio 9,3%;
  2. EUR account with deposit of € 400.000 and ratio 49,5%;
  3. GBP account with deposit of £ 300.000 and ratio 41,2%;
Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate).
 
In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example the first managed account will get position LONG 930.000 EUR/USD, the second - LONG 4.950.000 EUR/USD and the third - LONG 4.120.000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices. 
Could I then select a trader from signals and then he could some how trigger his orders on my account with the order size regulated by a ratio of 20% if I wanted to hold my drawdown to 20% per day of my account balance with my broker?    How would I set this up?
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