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PAMM and MAMM: Risks, Opportunities and Advices from Experts

  • #1
  • First Post: Mar 16, 2023 6:43am Mar 16, 2023 6:43am
PAMM and MAMM account systems represent an interesting opportunity for investors to invest their money in financial instruments, while allowing professional traders to manage investments. These systems have their own advantages and risks that should be considered when making an investment decision.

One of the key advantages of the PAMM and MAMM systems is the possibility of obtaining a stable income with little risk. Traders are professionals and are able to use various trading strategies, which reduces the risks for everyone.

However, like any investment system, PAMM and MAMM accounts are not always so perfect. Traders may use high-risk trading strategies that can lead to large losses. Therefore, before joining PAMM or MAMM accounts, investors should be prepared for the fact that losses are part of the trade and they are possible.

Another point you need to pay attention when working with PAMM and MAMM accounts is the choice of a trader. Investors should carefully study and analyze a trader's profile, past performance and trading strategies in order to choose the most suitable one for their investment purposes.

In addition, it should be taken into account that PAMM and MAMM accounts are not guaranteed investment instruments.
Although they allow investors to receive a stable income, this does not mean that income will always be guaranteed and constant. Investment results may vary depending on the actions of traders and changes in the financial instruments market.

In general, such systems represent an interesting opportunity for investors and traders, but require careful study and analysis before investing.

I invite all market participants using PAMM and MAMM, as well as those interested in the topic, to exchange experiences, information and questions.
  • #2
  • Mar 21, 2023 2:41pm Mar 21, 2023 2:41pm
Im not exactly a beginner and have experience trading on forex. but despite my experience, I couldn't achieve stable long-term profits. investing in pamm allowed me to earn a more stable income and worry less. for me personally, analyzing a trader's past trading once is easier than constantly analyzing the markets and trading on my own
  • #3
  • Mar 22, 2023 5:14am Mar 22, 2023 5:14am
I find the concept of PAMM and MAMM accounts quite interesting. From what I understand, it seems like a way to invest in the financial markets without necessarily having to trade on your own. However, as Kaldir mentioned, there are risks involved, and it's important to choose a trader carefully and analyze their past performance before investing.

@Marekus, I'm curious about your experience with PAMM accounts. Could you tell me a little more about how you chose the trader to invest in and what factors you considered before making your investment decision?
  • #4
  • Mar 22, 2023 5:52pm Mar 22, 2023 5:52pm
Quoting Kr.Uno
@Marekus, I'm curious about your experience with PAMM accounts. Could you tell me a little more about how you chose the trader to invest in and what factors you considered before making your investment decision?
as a basis for analysis I look at the period and history of trading (dont consider for less than a year), information about the trader (reputation, social networks, etc.), profitability, commission and risk level (allowed drawdowns).
also I rely on intuition because no past results guarantee their repetition in the future
  • #5
  • Mar 23, 2023 2:39pm Mar 23, 2023 2:39pm
Quoting Marekus
{quote} as a basis for analysis I look at the period and history of trading (dont consider for less than a year), information about the trader (reputation, social networks, etc.), profitability, commission and risk level (allowed drawdowns). also I rely on intuition because no past results guarantee their repetition in the future
Thanks you for sharing experience. I agree that analyzing a trader's past trades and considering their reputation, profitability, and risk level are important factors to consider before investing.
However, it's also important to keep in mind that past performance does not guarantee future results. As you said, intuition can also play a role in investment decisions, but it's important to balance intuition with careful analysis and risk management.
My opinion regarding choosing a trader, investors should also consider diversifying their investments across multiple traders and instruments to reduce their overall risk exposure. How do you think about this?
  • #6
  • Mar 23, 2023 2:43pm Mar 23, 2023 2:43pm
Quoting Kr.Uno
I find the concept of PAMM and MAMM accounts quite interesting. From what I understand, it seems like a way to invest in the financial markets without necessarily having to trade on your own. However, as Kaldir mentioned, there are risks involved, and it's important to choose a trader carefully and analyze their past performance before investing. @Marekus, I'm curious about your experience with PAMM accounts. Could you tell me a little more about how you chose the trader to invest in and what factors you considered before making your investment...
Did you have any experience with PAMM or MAMM accounts? If so, tell us about it and what advice would you give to someone who is considering investing in these types of accounts?
  • #7
  • Mar 23, 2023 11:22pm Mar 23, 2023 11:22pm
Quoting Kaldir
{quote} Thanks you for sharing experience. I agree that analyzing a trader's past trades and considering their reputation, profitability, and risk level are important factors to consider before investing. However, it's also important to keep in mind that past performance does not guarantee future results. As you said, intuition can also play a role in investment decisions, but it's important to balance intuition with careful analysis and risk management. My opinion regarding choosing a trader, investors should also consider diversifying their investments...
diversification is good if you have a large investment capital, as highly demanded traders have a high minimum investment threshold. diversification reduces the level of risk, but at the same time, it also reduces profitability. just like in trading, you need to balance between fear and greed. I don't invest in more than two traders, but perhaps over time and with capital growth, my approach will change.
  • #8
  • Mar 24, 2023 6:33am Mar 24, 2023 6:33am
Quoting Kaldir
{quote} Did you have any experience with PAMM or MAMM accounts? If so, tell us about it and what advice would you give to someone who is considering investing in these types of accounts?
I've never invested in the Forex market before, but the idea of being able to take advantage of the expertise of professional traders really appeals to me.
One thing that's been holding me back is the fear of losing my investment. I know that there are always risks involved in investing, but I'm not sure how to mitigate those risks when it comes to Forex.

I'm also want to know more about the process of finding a good PAMM manager. There are so many options out there, and I don't want to get scammed or invest in someone who doesn't have a proven track record. Any tips or advice would be greatly appreciated!
  • #9
  • Mar 24, 2023 6:59am Mar 24, 2023 6:59am
Quoting Marekus
{quote} as a basis for analysis I look at the period and history of trading (dont consider for less than a year), information about the trader (reputation, social networks, etc.), profitability, commission and risk level (allowed drawdowns). also I rely on intuition because no past results guarantee their repetition in the future
Thanks a lot.
I would be grateful if you could share your experience in a little more detail.
Imagine that you are talking to an absolute beginner in this
  • #10
  • Mar 26, 2023 7:16pm Mar 26, 2023 7:16pm
Quoting Kr.Uno
{quote} Thanks a lot. I would be grateful if you could share your experience in a little more detail. Imagine that you are talking to an absolute beginner in this
I don't mind sharing my experience. but it would be easier for me if you asked specific questions that you are interested in
  • #11
  • Mar 27, 2023 12:31pm Mar 27, 2023 12:31pm
Hi everybody.
I've recently started investing in a PAMM account. So far, my experience has been positive, but I'm still learning the difficulties. Do you think it's better to invest in PAMM accounts with a high or low rate of return?
  • #12
  • Mar 28, 2023 12:31pm Mar 28, 2023 12:31pm
Quoting Marekus
{quote} I don't mind sharing my experience. but it would be easier for me if you asked specific questions that you are interested in
Did you face any challenges or drawbacks while using this system? It would be interesting to hear about any potential risks that investors should be aware of when investing in PAMM accounts.
  • #13
  • Mar 28, 2023 9:33pm Mar 28, 2023 9:33pm
Quoting Kr.Uno
{quote} Did you face any challenges or drawbacks while using this system? It would be interesting to hear about any potential risks that investors should be aware of when investing in PAMM accounts.
I haven't faced any hallenges or drawbacks. but among other things it is important to pay attention to the trading period which can vary. the trader chooses it individually at their discretion. if you follow the trades or want to make investment you should take into account the end date of the trading period.
  • #14
  • Mar 29, 2023 10:03pm Mar 29, 2023 10:03pm
Quoting Oscansson
Hi everybody. I've recently started investing in a PAMM account. So far, my experience has been positive, but I'm still learning the difficulties. Do you think it's better to invest in PAMM accounts with a high or low rate of return?
Hi. I'm interested in the subject. I don't understand your question. How can it be better to invest in a pamm account with a low return than a high one?
  • #15
  • Mar 31, 2023 12:53pm Mar 31, 2023 12:53pm
Quoting Stavros999
{quote} Hi. I'm interested in the subject. I don't understand your question. How can it be better to invest in a pamm account with a low return than a high one?
Hmm. I wrote an answer but it seems was deleted.
I meant what trader is more relevant to invest in. For example one trader propose 5-10% of monthly income. Another propose 20-30%.
My question what pamm trader is more trustable?
  • #16
  • Apr 4, 2023 2:41pm Apr 4, 2023 2:41pm
Quoting Oscansson
{quote} Hmm. I wrote an answer but it seems was deleted. I meant what trader is more relevant to invest in. For example one trader propose 5-10% of monthly income. Another propose 20-30%. My question what pamm trader is more trustable?
Do you mean the monthly % of the balance increase or % that the trader and the investor share?
  • #17
  • Apr 11, 2023 1:04pm Apr 11, 2023 1:04pm
Quoting Stavros999
{quote} Do you mean the monthly % of the balance increase or % that the trader and the investor share?
I meant the monthly percentage of the balance increase that the trader proposes to make. This is an important indicator of the trader's potential profitability, but it's important to balance it with the trader's risk management strategy and past performance. So, my question is, how do you balance a trader's proposed return with their past performance and risk management strategy?
  • #18
  • Apr 13, 2023 12:47am Apr 13, 2023 12:47am
Quoting Oscansson
{quote} I meant the monthly percentage of the balance increase that the trader proposes to make. This is an important indicator of the trader's potential profitability, but it's important to balance it with the trader's risk management strategy and past performance. So, my question is, how do you balance a trader's proposed return with their past performance and risk management strategy?
This wording made it clear. The easiest way is using the Sharpe ratio.

To calculate the Sharpe Ratio for account, you will need data on the past profitability of the account and the risk-free rate. Typically, the risk-free rate in the forex market corresponds to the return on a deposit in a reliable bank or bonds with a high credit rating.

To calculate the Sharpe Ratio:

1. Calculate the average annual profitability of the account for a certain period of time (for example, for a year). Usually, this data can be found on the account or manager's website.
2. Determine the current risk-free rate in the market. This rate can be determined, for example, using the current deposit rate or bonds.
3. Calculate the standard deviation of the profitability of the account for the same period of time as in step 1.
This metric shows how much the profitability of the account changes over time.
4.Calculate the Sharpe Ratio using the formula:

Sharpe Ratio = (Rp - Rf) / σp

Rp is the average annual profitability of the account,
Rf is the risk-free rate,
σp is the standard deviation of the profitability of the account.

5. Interpret the result. A high Sharpe Ratio indicates that the account generates higher returns than the risk-free rate, at the same level of risk. A low Sharpe Ratio, on the other hand, indicates that the account carries more risk compared to the possible return.
  • #19
  • Apr 13, 2023 10:00am Apr 13, 2023 10:00am
Quoting Stavros999
{quote} This wording made it clear. The easiest way is using the Sharpe ratio. To calculate the Sharpe Ratio for account, you will need data on the past profitability of the account and the risk-free rate. Typically, the risk-free rate in the forex market corresponds to the return on a deposit in a reliable bank or bonds with a high credit rating. To calculate the Sharpe Ratio: 1. Calculate the average annual profitability of the account for a certain period of time (for example, for a year). Usually, this data can be found on the account or manager's...
Thanks for sharing the Sharpe Ratio method. It's a useful tool for analyzing a trader's performance and risk management strategy.

However, it's important to keep in mind that the Sharpe Ratio is not the only indicator to consider when choosing a trader. It's just one of many metrics that can be used to evaluate a trader's performance and risk. Some traders may have a lower Sharpe Ratio but have a more stable trading history and better risk management strategies.
For my opinion it's important to consider all available data and metrics before making an investment decision, and to always remember that past performance doesn't guarantee future results. Additionally, investors should diversify their portfolio by investing in multiple traders with different strategies and risk profiles, to mitigate overall risk exposure.
  • #20
  • Apr 13, 2023 5:46pm Apr 13, 2023 5:46pm
Quoting Kaldir
{quote} Thanks for sharing the Sharpe Ratio method. It's a useful tool for analyzing a trader's performance and risk management strategy. However, it's important to keep in mind that the Sharpe Ratio is not the only indicator to consider when choosing a trader. It's just one of many metrics that can be used to evaluate a trader's performance and risk. Some traders may have a lower Sharpe Ratio but have a more stable trading history and better risk management strategies. For my opinion it's important to consider all available data and metrics...
I agree. What metrics do you use?
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