Percent Allocation Management Module (PAMM)
The Percent Allocation Management Module (PAMM) is a technical solution provided to Dukascopy Europe clients and allowing them to have their accounts managed by a trader appointed by them on the basis of a limited trading power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Managed accounts can be funded in different currencies and deposited with different institutions. Depending on the size of the deposit each managed account has its own ratio in PAMM. 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.
PAMM trading has no difference in comparison with self trader platforms, all 3 types are available.
PAMM Functional Specification:
- Possibility to add and/or remove funds and accounts without interrupting trading activity;
- Ability to manage through one trading platform unlimited quantity of multi currency accounts;
- Choice of base currency for the trader’s platform;
- Immediate trade allocation between managed accounts;
- Performance fee calculation functionality;
- Ability to block trading facilities for particular managed accounts;
- Interactive functionality to accept/decline new managed accounts;
Example of trade allocation:
Lets assume that there are 3 managed accounts under trader’s management:
- USD account with deposit of $ 100.000 and ratio 9,3%;
- EUR account with deposit of ? 400.000 and ratio 49,5%;
- GBP account with deposit of £ 300.000 and ratio 41,2%;
Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate).
In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example first managed account will get position LONG 930.000 EUR/USD, second - LONG 4.950.000 EUR/USD and third – LONG 4.120.000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices.
Disclaimer: Without any exceptions, Dukascopy Europe IBS AS does not participate in any way in trading decisions made by external account managers and makes no representations, warranties and assumes no obligations with regard to any external account manager's trading strategy and/or performance.