Search LOGIN

How does it work?

PAMM (Percent Allocation Money Management) is a smart investment solution. It offers an ideal platform for bringing both beginners and experienced traders together.

The process is extremely efficient and easy as the system allocates costs and profits automatically.

PAMM Example
  • Customer registers as a Master and assigns Master Capital of $10,000.
  • Master sets trading interval as ‘1 month’ with following parameters
  • This means, at the end of a month, the Master will get 30% of the profit that exceeds the 10% limit. This is called Minimum Performance Constraint.
  • Two followers accept the offer: Follower 1 invests $25,000. Follower 2 invests $15,000. The PAMM account now holds $50,000 in total.
  • At the end of the month, Master trades successfully and the PAMM account profits 50%. The PAMM account now holds $75,000 in total.
  • Follower 1 gained 50% profit of his/her initial investment: $12,500 Minimum Performance Constraint (10%) for Follower 1: $2,500 Net Profit = $12,500 (Profit) — $2,500 (Minimum Performance Constraint) = $10,000 Follower 1 pays the Performance Fee (30% of the net profit) to Master: $3,000
  • Follower 2 gained 50% profit of his/her initial investment: $7,500 Minimum Performance Constraint (10%) for Follower 2: $1,500 Net Profit = $7,500 (Profit) — $1,500 (Minimum Performance Constraint) = $6,000 Follower 2 pays the Performance Fee (30% of the net profit) to Master: $1,800
  • Follower’s Current Balance = Initial Balance + Profit – Performance Fee Follower 1’s Current Balance = 25,000 + 12,500 – 3,000 = $34,500 Follower 2’s Current Balance = 15,000 + 7,500 – 1,800 = $20,700
  • Master’s Current Balance = Master Capital + Profit + Performance Fees 10,000 + 5,000 + 3,000 + 1,800 = $19,800
  • Profits: Follower 1 = $9,500 | Follower 2 = $5,700 | Master = $9,800

RELATED QUESTIONS

UNLIMITED ACCESS!

The best way to keep track of your accounts. Get notifications
and access your dashboard any time!

Open a live or demo account, make secure deposits or get latest
market updates for free!