RAMM investing advantages and disadvantages
The RAMM system is an innovative investment product that was developed and implemented by the brokerage company Amarkets . RAMM is a platform that can connect ambitious and profitable traders with investors.
For many, such a service raises quite a lot of questions; to describe the system in a nutshell, the RAMM operating mechanism is a kind of symbiosis of the familiar PAMM accounts, as well as a signal copying service.
The essence of the RAMM system
As already mentioned, RAMM is a kind of symbiosis of the PAMM system with signal copying services, and only the positive properties of these two systems are used. The basic principle on which the entire service stands is copying the signals of successful traders.
The fact is that the disadvantage of all signal copying services is the untimely opening of positions on the manager’s set and on the copying account. This state of affairs leads to many investors receiving signals with a delay, so profitability is greatly reduced.
For example, you can get acquainted with the monitoring of the most popular signal copying service ZULU, where under the charts of quite successful managers there are dozens of negative reviews from investors who lost money.
Actually, due to the fact that investors’ transactions were opened with a delay, they received losses, although the manager’s system was really effective. Therefore, the first thing that the developers of the RAMM system took care of was the complete coincidence of the opening and closing prices of transactions, both on the account of the manager and on the account of the investor.
Thus, the gap in profitability is completely eliminated, namely, if the manager received 5 percent of the deposit, then you will receive the same profitability and not a percentage less.
The second disadvantage of the signal copying service was the disproportionate deposit of the manager and investor.
If you have worked with services for copying trades, then you have probably encountered situations where your deposit is simply not enough to copy the manager, and if this happens, you simply get huge drawdowns .
In order to avoid this, services come up with all sorts of multipliers and the like, but it is the absence of this balance in capital that constantly leads to the investor losing money. Unlike the usual RAMM services, the system has completely eliminated this problem, namely, the entire calculation of lots of stop orders, etc., is completely dependent on the system and will in no way affect your profitability.
For example, if at the end of the week a trader with a deposit of 10 thousand dollars makes 5 percent, then you, having invested 10 dollars in him, will receive your 5 percent, while the difference in capital will not affect you, and the system will independently open positions with a reduced lot, with this is so that everything is proportional in terms of profitability.
Also, the main disadvantage of trade copying services is that you, as an investor, pay a certain commission regardless of what result you get.
The RAMM system is created in such a way that you will only share your profit with the manager under certain trading conditions as provided in the PAMM account services. Thus, you pay the manager only for the result, and not for the process itself.
The process of investing in RAMM
Like any signal copying service, you will have a number of strategies with clear reporting on profitability, drawdowns and risks. Actually, the system has its own rating. Your task is to get acquainted with each manager in more detail by looking at his statistics.
The system automatically calculates risks and potential profitability in the form of a table, which is located above the profitability graph. When investing, you can choose from three plans, namely conservative, moderate and aggressive. Actually, this is your risk limiter.
After you choose a strategy, click invest and specify the amount with a certain risk limiter:
Very important! The minimum amount for investing in one strategy is only $10, which makes this platform accessible to everyone.
Pros and cons of RAMM
So, when analyzing the features of the new service, we can highlight the following advantages from RAMM investing:
1) You pay only for income, sharing the profit with the manager.
2) You receive the same percentage of profitability as a manager.
3) You know your risks in advance, limiting them when investing.
4) It is possible to instantly exit an investment by automatically closing all positions. The money is in your account, not in the manager.
Minuses:
1) In practice, you have no real influence on the trader’s transactions, namely, you cannot open additional positions or change already open ones.
2) From a mathematical point of view, the system immediately warns you that the potential risk per week is much higher than the profitability. The only thing that is not taken into account is the durability of the account, which no one knows about.
3) Lack of popularity of the service
In conclusion, I would like to note that RAMM investing has undoubted advantages over the usual investing in PAMM accounts or signal copying services.
However, due to the specifics of the service in limiting the risks of RAMM, the system is not particularly popular among traders, especially compared to signal copying services or traditional PAMM systems, where there are no such restrictions.
All details can be found at the link - https://www.amarkets.org/