Main parameters of PAMM accounts

Sometimes, despite all the advantages of PAMM investing, investors are in no hurry to invest money there; one of the reasons for this is that a person far from trading does not understand the parameters that should be taken into account when choosing a manager.

In this article we will try to understand what important information an investment account contains and what it tells a potential investor.

In order to consider these indicators, first go to the Manager Rating , then click on any of the managers and go to the “PAMM Account Details” page.

• Profitability graph - it clearly shows the average profitability that a given manager provides for a selected period of time. Thanks to it, you can evaluate how stable a trader is trading.

• Trading period - the number of days after opening a given account; the most attractive are accounts with a long history of existence.

• Average monthly profitability is also an important indicator, since it characterizes the average trading profitability; the higher it is, the better.

• Average leverage - the lower it is, the lower the risk indicator with which this manager trades.

• Maximum drawdown - the percentage of losses that were incurred in relation to the deposit; it is not advisable to choose traders with a drawdown rate of more than 20%.

• Manager's capital - what amount of personal funds is used for trading on this account; the higher the value, the more funds the manager invests in trading.

• Capital under management - funds of investors who entrusted their money to this particular trader.

This indicator characterizes the popularity of the PAMM account. • The minimum Stop loss level is a fairly important indicator; it regulates the automatic return of funds in the event of a drawdown.

For example, a level of 20% is indicated, which means that if you lose more than 20% of your funds, your money will be automatically withdrawn to your account. • Manager's remuneration - how much profit the account manager keeps for himself; the lower the percentage, the more profit you will get.

These are the most important indicators that should be taken into account when choosing a manager; in some PAMM brokers you can find other parameters, but they are no longer so important.