Have you decided to try a new investment instrument? Study in detail the rating of PAMM accounts with reference to its type of work: conservative, moderate or aggressive. In the new material of my blog I will give answers to questions on what principle such ratings are built, how the coefficient of account comfort is calculated and why this indicator is extremely important.
What is important, except for the period of work and the size of the average profit? Why does the drawdown put pressure on the investor not only financially, but also psychologically? Who chooses aggressive accounts, and what's the point? Answers to these questions, as well as other important aspects concerning the rating of PAMM-accounts and how to work with each of the existing types - below.
What is a PAMM account?
For investors, PAMM is not a new abbreviation, in fact, it is a popular investment mechanism that allows you to make a profit and works solely on the principle of distribution between all investors and the manager: it divides both profit and loss.
Attracts this method of investment by the fact that the client does not need to do anything: it is enough to choose an account, a manager and make a regular profit. But this direction, as well as others for passive income, is also associated with a share of risk. In order to make the investments in PAMM accounts as efficient as possible, it is necessary to approach the selection in detail by studying important parameters, one of which is rating.
Rating of the best PAMM accounts
Immediately, I note that today there is no universal, 100% guaranteeing success rating, which would focus on future profitability with perfect accuracy. As a rule, the hierarchy is based on profitability - the average for a certain time, but this form does not include:
- the number and size of drawdowns;
- Term of the work;
- way to trade.
The objective rating of pamm accounts from all sites is updated regularly, and at the same time I note that Alpari not only launched the streamlined operation of such investments, but also offered an interesting attempt to rank for conservative and aggressive accounts. Over time, this formula was replenished with the category of moderate risks. What are the indicators in each category say - we find out below.
This direction is quite popular for many investors, and differs in such aspects:
- maximum drawdown size not more than 25%;
- work throughout the year;
- without the use of toxic trading methods, in particular, martingale;
- The minimum annual profit is 10%.
This PAMM investment strategy is designed for those who are used to receive stably, but not large sums.
The principle of traders is to squeeze the maximum out of the market, but at the expense of increased risks. At the same time, the loss of the deposit (and the actual drawdown) should not exceed ideally 50%. The main indicators of a moderate account can be considered such factors:
- work up to 1;
- avoiding toxic trading methods;
- the minimum profit in the worst months is no more than 20%.
Sometimes a moderate account can, under the confluence of subjective factors, including the mood or the strategy of the trader, immediately become aggressive or even go to the category of conservative, working according to the principle of the old proven truth, “go quieter - you will go on”.
This form of investment pretty tickles nerves, but choosing the right moment, you can make good money. It is important to feel that very moment, and secondly, to stop your impulse of greed. Among investors, there are those who often use a conservative or moderate strategy, but from time to time they wake up the desire to work on an aggressive account. What distinguishes such PAMM-accounts from the rest?
- Do not use martingale and other toxic instruments for trading (yes, that's right!).
- Work up to 1 year.
- Strong fluctuations in profits and drawdowns.
Please note that there is no maximum drawdown indicator, because, in fact, it can be absolute, as the bill completely merges. However, it is impossible to determine the average income, because it is a rather floating notion.
Alpari PAMM Account Rating
The traditional hierarchy of conservative and aggressive accounts is quite popular, understandable, but it is not perfect. We are dealing with statistics, which, as you know, is a stubborn thing. But at the same time, the floating percentage of drawdown and profitability, the seasonal garter gives its shade. The rating available for evaluation on the Alpari website is quite understandable.
We see the name of the account, place, total profitability, and besides this we can see it for a certain time (the entire working period, 1 year, 1 month, today's indicator), the amount of investments. Clicking on the “return” position, the program will calculate how long you will return the amount invested. A similar principle is used to compile a rating of PAMM accounts for alpha forex, as one of the key figures in the brokerage market.
Such monitoring additionally presents an indicator of successful transactions and restrictions on withdrawal. Who else makes these ratings? In most cases, the brokerage companies themselves, but the network has a number of independent services with talented authors who, with the help of personal observations and software, offer us this statistics. And what is important - regularly updated! If you take into account only the hierarchy of profitability, you can work exclusively with the TOPs in the top positions, but you can not say that somewhere in the middle or the end of the list there are successful traders who so far do not have enough time to get into the lead.
|PAMM account||Profit Loss||% Manager|
|Second way (349145)||4,1%||20-30%|
|SAVGROUP PAMM INVEST (343217)||0,3%||10-35%|
|EUR Interceptor (377956)||3,8%||50%|
As a result, I want to clarify that the rating is not a panacea or a guarantee that the chosen manager will bring you profit from each transaction, but it is a tool that allows you to make decisions about where to invest your money. Always evaluate the current rate of return and drawdown. I wish you strategically correct decisions that will bring a steady profit.
A professional investor with 5 years of experience with various financial instruments, maintains his blog and advises depositors. Own effective methods and information support for investments.