Today I want to return to the topic of transferring funds to the managing trader for trading on the Forex market. Investments in PAMM accounts can be very successful if you choose the optimal strategy for this type of earnings. A competent approach will allow the investor to reduce the risks of loss of funds and increase the probability of receiving a stable income.

Save and multiply is the main goal of any investor. Depending on which of these two tasks is a priority for the investor, the appropriate tactics is also selected. If the preservation of funds is essential for him, it is better to use conservative investment. If an investor is willing to take risks in order to make a quick profit, then aggressive investment is more suitable for him. Let’s talk about these two options in more detail.

Conservative investment

If the investor wants to keep the money, and he is satisfied with a small income, he should use the appropriate strategy when choosing managers. It’s all about the following. In the rating of PAMM accounts on the website of the brokerage company it is necessary to choose those managers who have a long history. The age of PAMM accounts should not be less than three months. Then you need to view the selected accounts and sort those of them, which have the capital of the manager is not less than $ 1000. The next step is to evaluate the profitability of the selected accounts. It can’t be less than 50 percent for the entire period of trading. Looking at the yield curve. It should be relatively smooth, without sudden jumps and directed upwards. Pay attention to the drawdown. It shouldn’t exceed 20 to 30 percent. In conclusion, we need to get to know each manager better. And it is especially important to read the description of his trading strategy. It should be consistent with the investor’s intention not to expose the invested funds to high risks.

I want to note that conservative investments in PAMM accounts are aimed at generating income for a long time. Therefore, they require significant amounts of money from the investor for trading. Conservative strategy will be suitable for those who can afford to invest in PAMM accounts at least $10,000.

Aggressive investment

This strategy will work
Investors who have insignificant amounts to invest (less than
1000 dollars) and at the same time are ready to take high risks. Still, they can be
if you use one of the simple strategies. For example, in front of
Doubling of capital the amount of invested money is withdrawn by the investor. Which means
the investor can now only lose what he has earned. Such a psychological loss
it’s easier to accept because your own money’s already been returned to your bank account. The second one…
The strategy is that the investor initially deposits
managing a larger amount than the one he intends to trade in the future.
This is done in order to reduce the risk of loss of funds more quickly. Let’s say..,
the investor plans to entrust the manager with $2,000. But first, he’s replenishing
a $4,000 account. As soon as the amount in the account grows to $6,000,
the investor withdraws his $4000 and leaves the $2000 in his account
dollars.

Of course, investments in PAMM accounts can be done by other strategies. But even using these simple methods will allow the investor to significantly reduce risks and increase earnings.

Fyodorov’s Inga

19.06.2019