Actions of investors when choosing a reliable PAMM-account when starting to invest in Forex:
1. Analyzing the trading history of a specific PAMM-account. The main source of analysis is the yield chart. We also take into account such indicators as: maximum and average peak load of the deposit, trading aggressiveness, daily gain-profit-loss. The value of these characteristics has weight for analysis only with a long account history (more than 12 months), otherwise the figures are not informative.
2. We analyze the PAMM-account trading system. To do this, open the investment declaration and see the stated restrictions. The first and second analysis parameters are interrelated. Only in the complex can we say about the level of risk with the use of a PAMM-account. The value of the maximum possible risk per transaction is an indicator of the possible amount of loss for one unsuccessful transaction.
3. Analyze the ratio of profitability and risk. The expected level of income should always exceed the possible risk.
4. We formulate the limitations under which the withdrawal of funds from the system will be performed. To do this, determine the initial investment plan. The withdrawal conditions are all that deviate from it.
5. We form an investment portfolio in order to minimize risks. This should be done taking into account possible risks for each PAMM-account.
After selecting PAMM accounts and forming an investment portfolio, we monitor the work of currency traders and minimize the risks of investing:
a) regularly withdrawing profit b) without risking more than they are willing to lose.
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