PAMM

The Percent Allocation Management Module (PAMM) is a technical solution provided to Atom8 clients permitting them to have their accounts managed by a trader appointed by them under a limited trading power of attorney.

The PAMM solution allows the trader on one trading platform to manage simultaneously an unlimited quantity of managed accounts.

Managed accounts can be funded in different currencies and (subject to agreement) 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 this ratio.

PAMM trading is performed on the same suite of Atom8 self-trader platforms with all the same functionality of Atom8 Trader; Atom8 Trader Pro and Atom8 Web Trader.

PAMM Functional Specification:

  • Possibility to add and/or remove funds and accounts without interrupting trading activity;
  • Ability to manage an unlimited quantity of multi-currency accounts via one “master” trading platform selected by the manager;
  • 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:

Assume there are 3 managed accounts under a trader’s management:

1.      USD account with deposit of $ 100.000 giving a ratio of 9,3%;

2.      EUR account with deposit of € 400.000 giving a ratio of 49,5%; and

3.      GBP account with deposit of £ 300.000 giving a ratio of 41,2%.

The relative size (calculated in USD) of investors’ respective deposits as a percentage of the entire assets under management determines their given ratio.  For ratio calculations, all non-USD denominated invested amounts are converted in USD equivalent based on current market rates).     

So, for example, if the Trader/Money Manager decides to buy 10 million EURUSD, PAMM allocates the order between managed accounts according to its given ratio.  Each managed account will be allocated its own proportion of the transaction and corresponding Profit & Loss.  In this example, the first managed account is allocated a LONG 930.000 EUR/USD position, the second – a LONG 4.950.000 EUR/USD position and the third – a LONG 4.120.000 EUR/USD position.  The resulting profit & loss will be automatically calculated for each account in accordance with movements in the underlying market price.        

Disclaimer:  Without exception, Atom8 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.

To learn more about Managed Accounts, please email us at: info@atom8.com, call us: +44 (0)20 7043 5050 or alternatively ask for a call-back.

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