Help CenterIn practice, investors allocate capital into a pooled account managed by a professional trader (the “money manager”). The trader executes buy and sell decisions, and all profits or losses are distributed proportionally among participants according to their share of the total fund. Investors maintain ownership of their funds, while benefiting from the expertise and strategy of the manager.
How to create a PAMM Strategy
To create a strategy, follow these steps:
- Log in to your client area and navigate the accounts tab on the left-hand menu
- Scroll down to the "Invest Accounts" section and click on Become a manager.
Getting Started
- Name: Enter the PAMM Account name.
- Description: Provide a short description of the PAMM strategy.
- MetaTrader: Select MT5 as the platform version.
- Servers: Choose our broker server: ValorMarkets-Server.
- Account Type: Select MT5 PAMM when creating a PAMM account.
- Automatically Create Account:
- Enabled: Creates a new account specifically for the PAMM.
- Disabled: Converts an existing account into a PAMM (must be empty to convert).
Rollover Settings
- Enable Rollovers: Allows you to define a timeframe where investors can modify, close, or open new investments.
Once enabled, you must set:
- Rollover Start Time (UTC)
- Rollover End Time (UTC)
- These times will be assigned to the selected Rollover Days.
- Frequency: Choose Weekly or Monthly for performance calculations.
- Rollover Days: Select the days when PAMM performance is calculated and profits distributed.
Rewards & Profit Sharing
- Reward Account: The account assigned to receive profit share.
- Reward Time: Set the exact (UTC) time when profit share is distributed.
- Reward Type:
- Share of Profit: A percentage of profits (if any) made during the selected frequency period is shared with the PAMM manager.
- High Water Mark: Profit share is only calculated once the investor account surpasses its previous highest balance.
Investor Options
New Investments:
- Only Open New Deals: Investor joins only future trades placed by the manager.
- Open Current Deals: Investor joins both current and future trades. Existing trades are opened at the current market price (which may differ from the manager’s entry price).
Minimal Investment Amount:
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- Define the minimum deposit in USD required to invest in the PAMM.
Auto Confirm Investment Requests:
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- Enabled: Deposits and withdrawals are processed automatically.
Disabled: The manager must approve every deposit or withdrawal request.
Deposits & Withdrawals for Active Investments:
- Enabled: Clients can make partial deposits or withdrawals.
- Disabled: Clients can only fully close or open new investments.
Example of Investment Contributions and Profit Allocation
Investment Contributions:
- Investor X: €40,000
- Investor Y: €25,000
- Investor Z: €20,000
- Investor W: €15,000
Total Capital Managed: €100,000
Profit Scenario:
Suppose the money manager earns a profit of €20,000 over the agreed period, and applies a 15% performance fee.
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Performance Fee Deduction
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- The manager retains €3,000 (15% of €20,000) as their fee.
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Net Profit for Distribution
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- €17,000 remains to be allocated proportionally among investors.
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Investor Payouts (based on their share of the total pool):
- Investor X (40% contribution): €6,800
- Investor Y (25% contribution): €4,250
- Investor Z (20% contribution): €3,400
- Investor W (15% contribution): €2,550