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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PAMM Assessment Criteria: Trader’s Behavior

To finally choose PAMM account you need to examine your trader’s behavior and peculiar features of his trading. Let’s point out the main aspects of this process.

Drawdown and Trader’s Reaction

One of the main aspects is trader’s actions during unfavorable period of trading.

PAMM investment isn’t recommended if unfavorable period of the trading strategy hasn’t occurred yet, even if the PAMM account has positive charts. It must be clear how your trader will act when drawdown occurs. Drawdown is an indispensable criterion for trading strategy assessment. It indicates the amount of money that an account could lose after a streak of losing trades. Drawdown is often used to measure the money-making potential of a trading system. It is necessary to see whether your trader sticks to his money-management strategy during drawdown or he increases the number of transactions to avoid drawdown. This increasing is very risky but such actions can be a part of trading strategy. Without considering these facts an investor risks his capital greatly. Drawdown Type and Its Influencing PAMM accounts

The opinion that short drawdowns show traders’ skills is often wrong. Drawdown itself doesn’t bear any negative aspect – it’s a part of the trading process. However, short and quick drawdowns make an investor alerted.

Special attention should be paid to step drawdowns. They indicate that your trader closes all losing positions without waiting for any turn as per his trading strategy. If the charts show only small losses it means that the trading system can stand unfavorable periods easily and does no harm to your investments. By reducing funds trader reduces the amount of opening positions. It increases PAMM account lifetime. The constant number of open positions increases risk a little. A high risk takes place if investors withdraw significant volume of money and a trader doesn’t close positions. If the number of open positions goes up while money withdrawing PAMM account is not likely to stand next prospective unfavorable period of trading. That is why it is very important for a trader not to over-risk while trading strategy faces its hard times.