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PAMM and MAMM: Risks, Opportunities and Advices from Experts

  • #21
  • Apr 14, 2023 8:02am Apr 14, 2023 8:02am
Quoting Stavros999
{quote} I agree. What metrics do you use?
Based only on my experience I consider several metrics besides sharpe ratio. Some of the important I look at include the maximum drawdown, the number of consecutive losing trades, the win-to-loss ratio, and the average trade duration. These metrics can help me understand a trader's trading style, their approach to risk management, and their overall performance.
Another important factor to consider is the trader's trading history. I look at the length of time the trader has been active, as well as their performance over that period. It's also important to consider their trading strategy and whether it aligns with my investment goals and risk tolerance.
Of course, no metric can provide a complete picture of a trader's performance and risk management strategy. It just help to avoid stupid loses.
  • #22
  • Apr 17, 2023 11:45pm Apr 17, 2023 11:45pm
Quoting Kaldir
{quote} Based only on my experience I consider several metrics besides sharpe ratio. Some of the important I look at include the maximum drawdown, the number of consecutive losing trades, the win-to-loss ratio, and the average trade duration. These metrics can help me understand a trader's trading style, their approach to risk management, and their overall performance. Another important factor to consider is the trader's trading history. I look at the length of time the trader has been active, as well as their performance over that period. It's...
Oh, thank you for such a detailed answer! It's evident that you are wellversed in the topic. Please share your experience and perhaps tell me something that is not commonly known? Also, I'm curious about how you determine when and how much to withdraw profits from an account?
  • #23
  • Apr 18, 2023 4:38am Apr 18, 2023 4:38am
Quoting Stavros999
{quote} Oh, thank you for such a detailed answer! It's evident that you are wellversed in the topic. Please share your experience and perhaps tell me something that is not commonly known? Also, I'm curious about how you determine when and how much to withdraw profits from an account?
Sure. But firstly must to say I have invested only in several accounts for this moment. And I didn't have a specialists to explain me how to do this correct. So I collected my info from forums and internet.

For example one thing that is not commonly known and I have noticed is the importance of understanding the trader's psychology and mindset. A trader's mindset can greatly impact their trading decisions, and therefore their performance. As an investor, I want to invest in traders who have a disciplined and rational mindset, rather than those who are overly emotional or impulsive in their trading.

Regarding withdrawing profits, it's important to have a clear strategy. For example, some investment systems operate compound interest. I try to invest where it is. Agree that the presence of compound interest on accounts completely changes the strategy of withdrawing profits.
That is, the longest duration of the investment without withdrawing funds = increase in profit.
But there are systems where the withdrawal of funds occurs automatically. Here the strategy is only in that you withdraw money to yourself or reinvest it back in order to get more profit next time.
It is important first to understand how a withdrawal occurs in a particular system and then build a strategy for withdrawing profits. For example, do not withdraw anything until you earn 50-100% of the invested amount. This is a long term strategy.
Or, for example, if the profit is 10-15% per month, then I would advise you to withdraw half of the funds earned per month, and leave the other half to bring more profit.
It all depends on your goals. If you want a constant income, then it would be better to invest a large amount and withdraw all the profit every month.
  • #24
  • Edited 5:21am Apr 18, 2023 5:08am | Edited 5:21am
Have a question to everyone
When looking to trader's perfomance what do you think is more important? Their trading history or their potential for future profitability?
  • #25
  • Apr 19, 2023 12:45am Apr 19, 2023 12:45am
Quoting Kaldir
{quote} Sure. But firstly must to say I have invested only in several accounts for this moment. And I didn't have a specialists to explain me how to do this correct. So I collected my info from forums and internet. For example one thing that is not commonly known and I have noticed is the importance of understanding the trader's psychology and mindset. A trader's mindset can greatly impact their trading decisions, and therefore their performance. As an investor, I want to invest in traders who have a disciplined and rational mindset, rather than...
Thanks very much for detailed and comprehensive response. As I understand it, withdrawing funds as infrequently as possible allows the funds to work for maximum profit, just like in any business. You mentioned that you have invested in several accounts. How do you find traders to invest in? And have you had any unsuccessful experiences with investing?
  • #26
  • Apr 19, 2023 11:29pm Apr 19, 2023 11:29pm
Quoting Kr.Uno
Have a question to everyone When looking to trader's perfomance what do you think is more important? Their trading history or their potential for future profitability?
counterquestion. how to assess potential for future profitability without analyzing trading history?
  • #27
  • Apr 20, 2023 4:35am Apr 20, 2023 4:35am
Quoting Marekus
{quote} counterquestion. how to assess potential for future profitability without analyzing trading history?
I think analyzing trading history is important for assessing potential future profitability, but there are other factors that can also be considered. What as for mamm? a trader's trading strategy and risk management approach, their level of discipline and emotional control, and their understanding of market dynamics and trends can all contribute to investor's profitability. Traders knowledge is important but you can control trading by yourself. I agree that for example trader's trading history can be 50/50% (profit/loses) but investor in mamm system could be more profitable then trader. Trader's experience can be helpful to consider external factors such as global economic conditions and political events that may impact the markets and he/she knows when to open trade. And investor can decides when to close. That is you manage your risk by yourself.
  • #28
  • Apr 21, 2023 12:26am Apr 21, 2023 12:26am
Hi, all!
If a trader's positions are visible, why not just copy them to your own trading account to capture all 100% of the profits?
  • #29
  • Apr 21, 2023 5:14am Apr 21, 2023 5:14am
Quoting Stavros999
{quote} Thanks very much for detailed and comprehensive response. As I understand it, withdrawing funds as infrequently as possible allows the funds to work for maximum profit, just like in any business. You mentioned that you have invested in several accounts. How do you find traders to invest in? And have you had any unsuccessful experiences with investing?
Glad to help. To find traders to invest in, I typically use forums, where other investors or/and traders share their experiences and recommend traders that they have had success with. I also read traders' websites and social media pages to get an understanding of their trading style, risk management strategies, and past performance.
As for unsuccessful experiences, as I said I invested in several pamm accounts for this moment. And haven't had a negative experience yet. But It's important to remember that investing in pamm accounts involves risk, and even the most successful traders can experience periods of losses. In my case, I had a period when trader did not perform as well as I had hoped. I learned that it's important to be patient and not to invest more than you can afford to lose.

What about your experience? Did you have it?
  • #30
  • Apr 21, 2023 5:33am Apr 21, 2023 5:33am
Quoting Kr.Uno
{quote} I think analyzing trading history is important for assessing potential future profitability, but there are other factors that can also be considered. What as for mamm? a trader's trading strategy and risk management approach, their level of discipline and emotional control, and their understanding of market dynamics and trends can all contribute to investor's profitability. Traders knowledge is important but you can control trading by yourself. I agree that for example trader's trading history can be 50/50% (profit/loses) but investor in...
You raise a valid point that trading history is not the sole determinant of a trader's potential for future profitability. Factors such as trading strategy, risk management, discipline, emotional control, and market understanding also play a significant role. In mamm systems, investors can indeed have more control over their investments, as they can decide when to close trades and manage their risks.
However, it's important to remember that not all investors have the experience or knowledge required to make informed decisions on closing trades and managing risks effectively. In such cases, relying on a trader's expertise and trading history can be a more prudent approach. Thats why I prefer pamm instead of mmam.
I think that you, like any person, do not want to lose money for any reason. Therefore, willy-nilly, you will take into account both losses and profitability of the trader you are interested in.
Well, there is an option that a person thoughtlessly decides to take a risk and does not do research, but simply invests. In this case, this person will get a 50/50 chance. Either win or lose everything
  • #31
  • Apr 24, 2023 2:28pm Apr 24, 2023 2:28pm
Quoting Kaldir
{quote} Glad to help. To find traders to invest in, I typically use forums, where other investors or/and traders share their experiences and recommend traders that they have had success with. I also read traders' websites and social media pages to get an understanding of their trading style, risk management strategies, and past performance. As for unsuccessful experiences, as I said I invested in several pamm accounts for this moment. And haven't had a negative experience yet. But It's important to remember that investing in pamm accounts involves...
At this stage I am studying the topic. I have been trading to fx about 2 yrs. However, I am getting mentally exhausted. The experience I have gained gives me some understanding that I want to apply as an investor. Therefore, I would be grateful for any real and useful information.
  • #32
  • Apr 27, 2023 5:24am Apr 27, 2023 5:24am
Quoting Stavros999
{quote} At this stage I am studying the topic. I have been trading to fx about 2 yrs. However, I am getting mentally exhausted. The experience I have gained gives me some understanding that I want to apply as an investor. Therefore, I would be grateful for any real and useful information.
Switching to the investor role can be beneficial. However, I'm not a trader myself. I immediately started learning about investing. Here are the key tips that I have already described: diversifying investments, studying traders (it will be easier for you as a trader), setting clear goals, monitoring investments, learning from others and following market trends. Good luck, and don't forget to keep your patience and a cool head in the decision-making process!
  • #33
  • Apr 27, 2023 5:46am Apr 27, 2023 5:46am
Quoting Tsalag
Hi, all! If a trader's positions are visible, why not just copy them to your own trading account to capture all 100% of the profits?
While it may seem tempting to copy a trader's positions and capture 100% of the profits, there are a few challenges to consider.

First, you need to be quick to react and execute trades, as market conditions can change rapidly.
Second, you may lack the trader's expertise in risk management, making it difficult to manage your portfolio effectively.
Finally, you may not have access to the same trading tools, insights, or conditions that the trader has, which can impact your ability to replicate their success accurately.

Keep in mind that, for example, your account with a deposit of $1,000 and the manager's account for $1,000,000 are different accounts and different trading conditions.
And many more brokers do not provide such a service.
These are just the obstacles that I remember.
As far as I understand, what you are talking about is the MAMM system. If not then correct me.
  • #34
  • Apr 28, 2023 11:45am Apr 28, 2023 11:45am
Quoting Kaldir
{quote} Switching to the investor role can be beneficial. However, I'm not a trader myself. I immediately started learning about investing. Here are the key tips that I have already described: diversifying investments, studying traders (it will be easier for you as a trader), setting clear goals, monitoring investments, learning from others and following market trends. Good luck, and don't forget to keep your patience and a cool head in the decision-making process!
Thanks a lot! If I have specific questions, can I contact you in private messages within this forum?
  • #35
  • May 1, 2023 7:27am May 1, 2023 7:27am
Quoting Stavros999
{quote} Thanks a lot! If I have specific questions, can I contact you in private messages within this forum?
Sure.
  • #36
  • May 2, 2023 8:17am May 2, 2023 8:17am
I believe that investing is a unique method of earning for both the beginner and the trader who wants to analyze the trade of a more experienced trader.
  • #37
  • May 3, 2023 12:28am May 3, 2023 12:28am
Quoting Kaldir
{quote} While it may seem tempting to copy a trader's positions and capture 100% of the profits, there are a few challenges to consider. First, you need to be quick to react and execute trades, as market conditions can change rapidly. Second, you may lack the trader's expertise in risk management, making it difficult to manage your portfolio effectively. Finally, you may not have access to the same trading tools, insights, or conditions that the trader has, which can impact your ability to replicate their success accurately. Keep in mind that, for...

Thanks bro) I'm just getting into the nuances. I'm interested in trading independently, but I don't mind spying on experienced traders in real time to test my understanding of the market.
  • #38
  • May 3, 2023 12:34am May 3, 2023 12:34am
Quoting Prudence12
I believe that investing is a unique method of earning for both the beginner and the trader who wants to analyze the trade of a more experienced trader.
Hello. Can you share your method of analyzing the trading of experienced traders? I'm also looking into this direction.
  • #39
  • May 4, 2023 7:35am May 4, 2023 7:35am
Quoting Tsalag
{quote} Hello. Can you share your method of analyzing the trading of experienced traders? I'm also looking into this direction.
I am primarily interested in traders' strategies and their success over time.
Once you have chosen a trader to invest with, you can always contact him and ask all your questions in person.
  • #40
  • May 4, 2023 5:28pm May 4, 2023 5:28pm
Quoting Kr.Uno
{quote} I think analyzing trading history is important for assessing potential future profitability, but there are other factors that can also be considered. What as for mamm? a trader's trading strategy and risk management approach, their level of discipline and emotional control, and their understanding of market dynamics and trends can all contribute to investor's profitability. Traders knowledge is important but you can control trading by yourself. I agree that for example trader's trading history can be 50/50% (profit/loses) but investor in...
I don't really believe in the profitability of a trading if anyone can interfere with it at any moment.
always have a feeling that there is someone behind.
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