What is percentage allocation management module?
The PAMM, or Percentage Allocation Management Module, is a trading platform that can manage an unlimited number of managed accounts at the same time. Simultaneously, traders create trading positions, PAMM copies trades, and distributes trade sizes based on an allocation percentage to the investor's account.
Investing clients may be in their numbers, but they will be served by a single trader. PAMM technology is used in all of this. A percentage share of funds from each investor within a single account is assigned to funds allocated to a PAMM account. This means that investors could own 25%, 35%, or 20% of the total fund, with the remaining 20% held by the owner (trader).
Investing clients may be in their numbers, but they will be served by a single trader. PAMM technology is used in all of this. A percentage share of funds from each investor within a single account is assigned to funds allocated to a PAMM account. This means that investors could own 25%, 35%, or 20% of the total fund, with the remaining 20% held by the owner (trader).
A percentage allocation management module is a tool used in trading and investment systems to control how capital is distributed across trades, assets, or strategies based on fixed percentages. Instead of using a fixed amount, it allocates funds proportionally to the total account balance. For example, a trader may risk only 2 percent of capital per trade or allocate 40 percent to one asset and 60 percent to another. This approach helps manage risk, maintain consistency, and adapt position sizes as the account grows or shrinks. It is commonly used in portfolio management, automated trading systems, and Expert Advisors. By standardising exposure and avoiding overconcentration, percentage allocation management supports disciplined decision making and long term capital preservation.
Nov 24, 2022 08:41