Forex FS PAMM Solutions

The Percent Allocation Management Module (PAMM) is a technical solution provided by Forex FS for Money Managers. 

The PAMM solution allows Money Managers to trade simultaneously on unlimited managed accounts on the basis of a limited trading power of attorney. 

Depending on the size of the deposit each managed account receives a part of the trade from the Master account according to the following ratio:

R=Managed account balance / Master account balance

Master account balance = ∑ Managed account balances

PAMM distributes the Master trade signal, adjusting the size of trades in proportion to the balance of each individual Managed account. The Master account is a virtual account the balance of which is equal to the sum of the balances of its Managed accounts. Total sum of all ratios under one PAMM account is always equal to 100%. Trader’s activity results (trades, Profit & Loss) are allocated between managed accounts according to ratio. Please note that JForex PAMM will automatically adjust proportions based on currency where as MT4 PAMM looks at only the ammount of equity.

• Manage unlimited accounts through one trading platform 
• Immediate trade allocation between managed accounts
• Add and/or remove funds and accounts without interrupting trading activity
• Managed accounts can be funded in different currencies 
• Choice of base currency for the trader’s platform
• Clients have the ability to put all trading on hold at any time or at a predetermined equity level. All new PAMM trade signals will not be sent, while open trades remain managed by the PAMM signals.
• The JForex PAMM also provides performance fee calculation and interactive accept/decline for new managed accounts functionality .

Money Managers can open PAMM accounts on both the MetaTrader 4 and JForex Platforms. 

Please note that there are some differences in the set up of PAMM accounts between the MT4 and JForex platforms. We suggest you open a Demo PAMM Account on both MT4 and JForex Platforms to choose the system which best suits your needs.
 

Example of PAMM trade allocation:

Assume that there are 3 managed accounts under money manager's PAMM account.

JForex:

1. USD account with deposit of $100,000 and ratio 9.3%

2. AUD account with deposit of $400,000 and ratio 49.5%

3. GBP account with deposit of £300,000 and ratio 41.2%

For ratio calculation all amounts are converted in USD equivalent based on market rate.    

If the Money Manager decides to BUY 10 mio EURUSD, the PAMM will allocate the order between the three managed accounts according to its ratio:

1. The first managed account will get a long position of 930,000 EUR/USD

2. The second managed account will get a long position of 4,950,000 EUR/USD

3. The third managed account will get a long position of 4,120,000 EUR/USD

Resulting profit & loss will be automatically calculated for each account depending on market prices.   

MT4:

1. USD account with deposit of $100,000 and ratio 12.5%

2. AUD account with deposit of $400,000 and ratio 50%

3. GBP account with deposit of £300,000 and ratio 37.5%

For ratio calculation only the equity ammounts are used. This can be mitigated by operating a different Master account for each currency type deposited.  Please visit our IBs & Money Managers page to see other available set up options.

In this scenario, if the Money Manager decides to BUY 10 mio EURUSD, the PAMM will allocate the order between the three managed accounts according to its ratio:

1. The first managed account will get a long position of 1,250,000 EUR/USD

2. The second managed account will get a long position of 5,000,000 EUR/USD

3. The third managed account will get a long position of 3,750,000 EUR/USD

Resulting profit & loss will be automatically calculated for each account depending on market prices.   

 

MT4 to JForex Bridge

The MT4 to JForex bridge allows money managers tomanage all MT4 and JForex accounts simultaneously by copying trades from one or several MetaTrader 4 terminals to one or several JForex accounts, using all the features of their MT4 MultiTerminal quot;PowerTradeCopier"

RISK WARNING: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Forex FS does not participate in any way in trading decisions made by external money managers aside from the rebates program and makes no representations, warranties and assumes no obligations with regard to any external money manager's trading strategy and/or performance.