Thursday, December 20, 2012

How To Identify Reliable PAMM Trader?

What I have realized while browsing forums is that there are many PAMM traders promoting their PAMM accounts in different topics and threads. (just like me, lol )

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 :D)

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

2)Simple rating
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

6)Profit tab
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.

7) Margin
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

Click below to see my PAMM stats or discuss in forum