What I have realized while browsing this forum is that there are many PAMM traders promoting their PAMM accounts in different topics and threads. (just like me )
What you see is that many of them are in profit in the time of topic launch, but when you come to that topic couple of weeks or months later, you can find many negative balances or wiped out accounts. (hopefuly, it will not happen to me )
The thing is that many people is looking for good and reliable PAMM traders, so I decided to put some rules together that will help you indentify really reliable PAMM traders.
Here they are:
1) Overall profit
This is a must. Look for those who are in profit
The higher number the better. However there are also reliable traders with lower rating because they do not have long history of their account. So do not overlook them. Also someone with high ranking can be sinking, if he changed his strategy or used some "good luck" strategy before and how his luck is gone.
3) Number of trades
Consider traderr results according to this. Someone with huge profit but only couple of trades may not be better than someone with lower overal profit but hundreds of trades
4)Current and history investments
Check these tabs to see if he made any profit for someone.
5)Balance & Equity tab
this can be missleading when he has big cashflow (invest money in and out)
better see Profit Tab of his chart
Here you can see his real profit or loss. What you also should be looking for is balance (green line) vs equity (red line) see image
If equity line is very down below balance line, that means this trader is having bid drawdown and can risk your money.
If you place your mouse cursor over some point on green or red line, you will see balance profit and equity profit in %
Some traders are having 40-60% drawdowns which is very risky.
Their accounts are in overall profit, but when you check their profit chart you can see that they let losing trades run without stoploss and were just waiting to market reverse to take small profit. These drawdowns can wipe your account.
So be aware of traders with equity line "valleys" as on picture above.
Best traders are with red line close below green line or those who has peaks of equity line often above balance line and no valleys.
On the profit tab you can see blue columns showing margin used for trading.
If it is high , it means trader opens many trades at the same time or use oversized lots. Both mean higher risk for you
Some traders use 80% margin or more which can cause a margin call on their account and broker will close trades even they are in loss
Well, I hope this helps you to choose right PAMM traders and make some money
it is difficult to identify a reliable PAMM trader. you check the history of any trader through internet or through any other means. if he is having constantly profit than he is good trader.
to have constant profit is not enough..there are traders who mae profit every month but with very wide stoploss and once huge counter trend happens they can lose everything in one trade. so to find reliable trader you have to also check his risk management and risk/reward ratio
I think some of the rating may be misleading. I think you should look across . Not only long years of account or column but consistency across the board. A lower ranking , if you look carefully might even be better than the top raking . Be careful . It's you money here
The idea you shared through this thread to identify reliable PAMM trader is undoubtedly good. But it is difficult to identify a reliable PAMM trader for me as I am completely new with this PAMM, it may need some time to understand on it.
You must ask for previous history
If available, ask for myfxbook
if newbie opens PAMM, don't invest on him
But, if he can prove that he has traded more than 3 years, and the winning ratio is good, invest on him
I do trust with you little sist, indeed, when we are work as a retail trader, and do understand the risk, we won't say that put money to others, and let him or her to manage are easy. its something which require further prove and it shows how reliable you are. when he or she prove good result record, we can trust.
Forex Forum mt5.com – Introduction.
Forex market is high-yield and risky
mean of taking profit by operations with the currency rates. Instruments
of work at Forex market in many ways determine the result of currency
trading made by Forex market participants – brokers’ clients. Every
Forex broker offers its own terminal, however the most part of brokers
and traders concur in choosing MetaTrader 4 and MetaTrader 5 terminals.
This forum is created for those who prefer the terminal of MetaTrader
series in trading on Forex.
Forex Forum mt5.com – trade discussion.
Forex market forecasts, independent
opinions of novice traders and experts of the currency market – all
this you will find at the Forex-forum of trades discussion. Solid experience
of work on Forex is preferable, but all comers including Forex-newbies
may come and share their opinion as well. Mutual help and dialog –
the main goal of communication at Forex-forum, devoted to trading.
Forex Forum mt5.com – dialog with
brokers and traders (about brokers).
If you have negative or positive experience
of work with Forex broker – share it at Forex Forum, related to the
questions of Forex service quality. You can leave a comment about your
broker telling about advantages or drawbacks of work at Forex with it.
The aggregate traders’ reviews of brokers constitute a rating. In
this rating you can see the leaders and outsiders of the Forex services
Free discussions at the Forex Forum
You are a trader and want to relax?
Then Forex Forum for free discussions is for you. There are no doubts
that conversation on subjects close to Forex market is preferential.
Here you will find jokes about traders, caricature of Forex brokers
and full-rate Forex off top.
Bonuses for communication at Forex
This forum is created by traders for
traders and is meant for deriving of profit. However, each post at the
Forex forum gives its author a forex bonus, which can be used in Forex trading
at the account opened with one of the forum’s sponsors. This small
gift is presented with the aim to reward professional traders for spent
time at our forum.
We appreciate your choice of Forex
forum mt5.com as a platform for communication.