PAMM accounts: rating and reviews

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Oh, how lovers love (yes, lovers like it))) freebies to read the reviews that their predecessors have already filled cones have written for them. Then see the rating of all the good that made the same people. After that, use a toaster, a mobile phone or a financial product. In this case, it will be about PAMM accounts ratings. I think you already understood. Trusting reviews and ratings on the Internet is very careful. One must be able to distinguish real from advertising or anti advertising. So, I declare that all ratings of PAMM accounts on the Internet are not fair in their essence. Their task is to force you to open a PAMM account. I already wrote about the fact that this service in itself is not sensible. At least in the Forex market . And the ratings do not support this health only.

Where to look when reading a PAMM accounts rating?

PAMM Account Lifetime

The sad fact is that the life of such accounts is measured not in years, but in days. In principle, this is the main and most important argument against investing in such accounts. Finding an account older than 1000 days is a rarity. And if we find, then the results of such an account are usually far from desired. Would you invest money in a bank if its advertising reads “… was founded 500 days ago …”?

PAMM Account Yield

THREE MILLION PERCENT !!! The worst thing is that there are a lot of people who do not understand my smile when looking at these figures. For them I explain. PAMM account profitability, like any other forex trading, goes hand in hand with potential losses. At best, potential profitability can be 3 times higher than potential losses. Let’s analyze the bill from the picture: the life span is 3.5 years. The yield of 3.5 million percent. This is approximately 1,000,000% per year. So the risk is one third of a million percent. The risk is 333 000%. You have only 100% of the money. And this means that with a probability of 3330 to 1 you will lose money within a year. But “PAMM investors”, of course, look at the chance to earn with a probability of 1 to 3330. This case is out of the ordinary. But the yield above 100% per annum should already be very alarming! I wrote whyin the article about investing in PAMM accounts .

Odds, brokers, etc.

This is completely zombies and distracts attention from the main thing. I have been dealing with stock, currency and commodity markets for many years, but I still don’t know the coefficients represented in the ratings. Apparently hedge funds use some other indicators. Basically everything I wanted to say. BUT you, and I still have the feeling that if you take a good dive, you can find 2-3 effective accounts. I’m not interested in looking because of the formed beliefs. But I will be happy to help you answer the question on a specific PAMM account. Something like this:

PAMM Account Analysis

PAMM account yield

Take a specific account from the top of a popular Forex broker: Yield chart:

It seems that we are looking for something like this yield chart. Everything is stable. Lives for a year. There is a drawdown, but who does not have it. You can invest. But look at the shoulders, which uses the account:

PAMM Account Analysis

In moments of subsidence, the shoulders increase greatly. This means that the score uses an averaging strategy against movement. Such strategies are often used by novice pair traders (I don’t speak about gamblers at all). I already wrote about the similarity of forex trading with pair trading in the stock market . Trading such an account is always !!! ends with a sheer drop in yield to 0! You can not invest money in it.

Consider another type of PAMM account yield graph:
PAMM Account Yield

Three equity of different PAMM accounts, with different lifetimes:

On all charts, the yield is asymptotically approaching the horizontal level. This may indicate two possible options: Let us take the axiom that the amount of assets under management is growing not only because of the accumulation of profits, but also at the expense of new investor money.

  • Good
  • Bad

In any case, I do not recommend investing in such an account. In the first case, the manager may conceal the real indicators of his strategy. The second case is clearly fraudulent. If you are interested in my opinion about any particular PAMM account, throw the information in the comments. I am pleased to analyze.