Basic parameters of PAMM accounts

Sometimes, despite all the advantages of PAMM investing, investors are hesitant to invest. One reason for this is that those unfamiliar with trading don't understand the parameters to consider when choosing a manager.

In this article, we'll explore the important information contained in an investment account and what it tells a potential investor.

To view these indicators, first go to the Manager Rating , then click on any manager to access the "PAMM Account Details" page.

• Profitability Chart - This clearly shows the average return provided by a given manager over a selected period. This allows you to assess the trader's trading consistency.

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

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

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

• Maximum drawdown is the percentage of losses that were allowed in relation to the deposit, it is not advisable to choose traders with a drawdown indicator of more than 20%.

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

• Capital under management is the funds of investors who entrusted their money to this particular trader. This indicator characterizes the popularity of the PAMM account.

• Minimum Stop loss level is a rather important indicator, it regulates the automatic return of funds in case of drawdown. For example, the level of 20% is indicated, which means that if you lose more than 20% of the funds, your money will be automatically withdrawn to your account.

• Manager's remuneration is 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 to consider when choosing a manager. Some PAMM brokers may also have other parameters, but they are not as important.