Jforex PAMM Solution

The JForex Percent Allocation Management Module (PAMM) is a technical solution provided by Dukascopy Bank and Forex FS.

The JForex PAMM allows a Trading Strategy Provider (TSP) to trade simultaneously on unlimited connected client accounts on the basis of a limited trading power of attorney.

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

image of connectedness

R=Connected client account balance / Master account balance

Master account balance = ∑ Connected client account balances

PAMM distributes the Master trade signal, adjusting the size of trades in proportion to the balance of each individual connected client account. The Master account is a virtual account the balance of which is equal to the sum of the balances of its connected client accounts. Total sum of all ratios under one PAMM account is always equal to 100%. TSP's activity results (trades, Profit & Loss) are allocated between connected client accounts according to ratio.

Please note that JForex PAMM automatically adjusts proportions based on currency type. Please see examples of allocation styles below.

  • Trade across unlimited accounts through one trading platform
  • Immediate trade allocation between connected client accounts
  • Add and/or remove funds and accounts without interrupting trading activity
  • Connected client 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 balance. All new PAMM trade signals will not be sent, while open trades remain connected to the PAMM signals.
  • The JForex PAMM also provides performance fee calculation and interactive accept/decline for new connected client accounts functionality

Example of PAMM trade allocation:

Assume that there are 3 connected client accounts under a TSP'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 TSP decides to BUY 10 million EURUSD, the PAMM will allocate the order between the three connected client accounts according to its ratio:

  1. The first connected client account will get a long position of 930,000 EUR/USD
  2. The second connected client account will get a long position of 4,950,000 EUR/USD
  3. The third connected client 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.

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 or warranties and assumes no obligations with regard to any external money manager's trading strategy and/or performance.