The Trading Strategy for sale

The Scalper with a ten-year history:

  • Income for 10 years
  •   1560.93%;
  • The average annual income
  •   156.09%;
  • Maximal drawdown
  •   22.83%.
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The Myths about Funds and Traders’ Actions

Let’s talk about the minimum of trader’s money on PAMM accounts, about the number of open positions and investment losses. What shall a trader do with all these?

Manager’s PAMM account funds

The minimum of PAMM manager’s capital is often questioned by investors. Some consider a trader to be successful if he has large amount of his own money on PAMM account which he won’t risk purposely and will treat them more carefully.

However, this opinion has nothing to do with the real conditions, as the main investor’s rule is to pay attention only to concrete aspects. Trader’s money amount is of no significance at all. The only facts needed are charts to monitor trader actions.

Open positions number

Sometimes investors want to know of trading risks by open positions lot volume. Though, no full answer can be given. The number of the positions to be opened by manager depends on risk of every single transaction, and stop-loss orders. The closer the stop-loss coming to the price the less you lose as the investments can be timely secured if any disaster occurs. So, if only 3% of deposit is transacted and stop-loss is set close enough, lot size can be significantly bigger than with the wide stop-loss as risk in this case is not high. The same lot size with the same balance (but with different timeframe and trading strategies) can be too big for one trading strategy and too small for another. So, lot size can’t be considered as risk indicator of trading.

Investments losses: what to do and whom to blame

A trader is supposed to be responsible for investments losses when he breaks money management rules, doesn’t have enough funds of his own, hasn’t closed transacting during a drawdown, and doesn’t recover investments. But it is a hasty conclusion. Trader gives an opportunity to an investor to join PAMM account on certain conditions. If investor chooses this very PAMM account it means that he knows trading strategy features and finds all the conditions satisfactory. In such case, only investor is responsible for PAMM choosing. Before choosing the right PAMM account it is obligatory to examine thoroughly trader’s efficiency, his psychological stability, and trading strategy. Investor brings his funds and agrees with all the conditions imposed and with all possible results. Investing should be done only basing on facts and unbiased analysis but not on assumptions.