IDS Venture is offering PAMM Account for MT4, it is the most sophisticated PAMM on the market. This MetaTrader plug-in allows users to assign multiple sub-accounts to a single master account. Any trade then opened by the master account is distributed automatically among the sub-accounts in real time, with the individual sub-account volume calculated using a simple allocation method.
Understanding how the PAMM Program Works
As a PAMM Manager, you open a PAMM Account and allocate funds to your Manager Account – this is known as the Manager's Capital. When a PAMM Manager successfully manages investors' funds by generating a profit, the Manager will receive a Success Fee – a pre-agreed percentage of the investor's share of the profit.
To choose a PAMM Manager, Investors can review the PAMM Performance Rankings page and select the PAMM Managers who match their investment goals. It's easy to find a Manager from the customisable PAMM Performance Table by filtering results by active/ inactive strategies, current ranking, PAMM strategy name, minimum deposit, gain and maximum drawdown.
PAMM Managers trade using their own capital (Manager's Capital) and the funds of any investors in the account. Simply put, any profits and losses generated on the PAMM Manager's Account will be shared between all accounts that are invested in the PAMM Manager on a proportional basis.
Here are the example of how PAMM works and how the profit of the trades are being allocated proportionately.
Supposing our PAMM manager had five clients.
Client 1: Accounts for 5% of total equity.
Client 2: Accounts for 30% of total equity.
Client 3: Accounts for 30% of total equity
Client 4: Accounts for 15% of total equity.
Client 5: Accounts for 20% of total equity.
The 100 lot long EUR/USD trade would be broken as follows:
Client 1: Long 5 Lots of the EUR/USD.
Client 2: Long 30 Lots of the EUR/USD.
Client 3: Long 30 Lots of the EUR/USD.
Client 4: Long 15 Lots of the EUR/USD.
Client 5: Long 20 Lots of the EUR/USD.
When you decide to invest in any of these PAMM Manager acccounts, always remember to diversify your risk by allocating your funds to various managers at the same time. This will not only help you to achieve your maximum return on Investment after a specific period of time but will also help you to limit the risk of losing most trades.