There is publicly available data on how much people earn on PAMM accounts, you just need to look at the page of any PAMM account, where statistics of profitability by months, for certain periods or for all time are publicly published.
How much you can earn on PAMM accounts per month
There are accounts in the rating that have been working for years. You can use them to guide you when calculating your monthly profit. The range of values is large, but if you compose a portfolio of several managers, then the investor will receive at least 4-10% on average per month.
If you look at the “ Investments ” tab of any manager, then you can see the size of deposits and understand how much you can earn on PAMM accounts on real accounts.
The above monthly returns are fair for long-term investments. At a distance of 5-10 months, the impact on reporting of individual unsuccessful months is smoothed out.
There are no traders whose systems periodically do not show losses. Even the leader of the Alpari rating in the spring of 2020 had a situation when the manager went into a drawdown. He got out of it in a matter of weeks, but if the money were invested for 1 month, then instead of profit, the trader could lose money.
The opposite may be the case. An investor who invested money in the same account on a drawdown received more than 70% profit in a week.
How much can you earn constantly on PAMM accounts?
Brokers do not limit the income of traders and clients.
Moriarti has shown a profit of about 200,000% in 6 years. If the investor invested $ 1000 at the time of the start of work and did not withdraw profit, then this money would turn into $ 2 million.
This is a theoretical profitability , among the investors there are those who have earned tens of thousands of dollars, but there are no millionaires, since each investor systematically withdraws profits.
A real investor makes a portfolio of several managers. Due to this, there is a diversification of risks according to such criteria as the aggressiveness of the work, the type of trading strategy. Therefore, the overall profitability decreases, but the stability of the PAMM account portfolio increases .
Daily earnings should not be of interest to an investor, as there may be constant swings. The viewed horizon should be from 6 months, this is the only way to see the real state of affairs.
Below are real reviews of investors working with PAMMs.
DonVittorio “I have been investing in this for 5 months already. Over the past 4, it turned out only 5.26% (this is for all 4 months), and in August alone, it was already 4.45%. In general, I think the result is not bad . “
Hallygali “ I have chosen a slightly non-standard work tactic – I invest in medium-aggressive administrations. For myself, I have determined approximate goals – losses up to 10% and profit in the region of 40-50% per month. Well, in general, I adhere to the approach to invest as much as it is not a pity to lose . “
skateandd “ I spent more than $ 3000 on PAMMs. He invested all the money, and the manager took and poured all the capital. The broker does not help in any way, he says that the manager can trade as he wants – at least by martingale, at least by advisors. In general, no benefit, only harm and loss . “
LovelS “ In principle, I have probably already worked with a couple of dozen councils. Constantly someone from the portfolio drops out, someone is added, I monitor the overall performance. I will not advise someone specific from the rating, but in general you can make money on this. I can recommend not working with new accounts, which are 1-2 months old and the yield is more than 100%.”
Igor “ I finally matured in February 2016, picked up a portfolio of 5 managers and allocated $ 200 for each. I expected that each of the councils would give about 5% per month. On average, something like this happened, one management merged in a month, but the rest worked fine. As a result, by November of the same year, an average of about 7.2% growth per month was obtained. Then I withdrew the money and moved on to my own experiments in trading . “
Vyacheslav “ Last year we managed to do + 70%, this is already taking into account the manager’s commission. Then + 65% for the first 3 months of this year. After that he took out the money and began to try to trade himself, in the money he earned somewhere between $ 4000- $ 4500 “.
Most of the reviews confirm the above – traders make money with PAMMs, but the profit is not guaranteed. The broker does not insure investors against losses, his role is reduced to monitoring the fulfillment of obligations by the parties to each other.
Tips for choosing profitable PAMM accounts
The analysis of the account begins with an assessment of its performance at a distance. Taken into account:
- Age . This is a marker of the manager’s reliability, if he has been working for 3-4 years, then the trading strategy has proven its worth;
- The number of investors and the amount of funds under management . User confidence is another characteristic of PAMM, the more both indicators, the better. The dynamics of changes in the volume of investments is also taken into account, the outflow of funds is a bad sign;
- IKP (what leverage the PAMM owner uses). This number is calculated as the volume of open positions to the account balance. The higher the ICP, the greater the load on the account. Reliable PAMMs reduce ICP as investment increases to improve reliability. If there are sharp jumps on the chart of the leverage used, this indicates instability of the trade;
- A series of trade statistics . What matters is the relative profit and loss for the entire time of work and for the day. The average daily earnings and losses are taken into account (the profit must exceed the losses in order to be able to make money at a distance). The recovery factor is also taken into account – it shows whether the profitability is sufficient to exit the drawdown, this coefficient should be greater than 1.0;
- Aggression level . This characteristic depends on the daily volatility of the yield. If this indicator changes by 7 +% per day, the account is considered highly aggressive, if it is in the range of 0-1%, the account is conservative. In the rating, “aggression” is shown by markers on a scale from 1 to 5.
In addition to statistical indicators, the following is assessed:
The curve of the deposit change , its shape indicates the stability of the trade. Sharp jerks in both directions are undesirable. There should be stable growth throughout the entire life of the account, preferably without protracted periods of stagnation.
A declaration in which the manager indicates the allowable drawdown and leverage. Later, you can evaluate the compliance of the actual trade with the declaration.
Terms of the offer , in particular the procedure for withdrawing funds and distribution of profits. The norm is the manager’s remuneration in the range of 20-50%, depending on the scale of the investment.
This information is enough to select an adequate trader who will not drain capital in the first month.
Recommendations for investors
They earn money on PAMMs, but given the risks of this investment area, it is advisable to adhere to the following rules:
- Money is not invested in just one manager. Diversification is important, for this a portfolio of at least 4-5 traders is compiled;
- In selecting PAMMs, a comprehensive account analysis is carried out;
- Rebalancing is carried out periodically. Stagnating or unprofitable PAMMs are removed from the portfolio, and new ones are added to it;
- To achieve a result at a distance, profit is not withdrawn, but reinvested in other accounts.
These rules improve the stability of the portfolio and increase the chances of its survival over a distance of several years.