What is PAMM trading?

[Mdraghib]

PAMM (Percentage Allocation Management Module) is a managed investment system used in online trading, especially in forex markets. It allows investors to allocate their funds to experienced traders, known as money managers, who trade on their behalf. Profits and losses are automatically distributed among investors based on their contribution to the total managed capital. PAMM trading accounts offer a hands-free way for individuals to participate in trading while maintaining transparency and control over their funds.

 

[borzy]

PAMM is basically ‘you allocate capital, a manager trades, P/L is split by allocation.’ If someone’s considering it, I’d treat it like due diligence: verify track record and max drawdown

 

[YellowWitty]

Good breakdown. I’d just add that a PAMM is only as good as the manager and the risk they’re taking. Before putting money in, I’d look at max drawdown, how long they’ve traded live, and whether the returns look almost too smooth for the market. What would you consider a reasonable drawdown limit for a PAMM?

 

[borzy]

returns being “almost too smooth”—that’s a red flag I’ve learned to respect. For a PAMM at HFM, I personally treat ~10–20% max drawdown as already aggressive

 

[Cheeky]

PAMM can be fine, but the hands free part is also the danger. You’re basically outsourcing risk control, and a smooth curve can hide a nasty drawdown until it’s too late. I’d treat it like hiring a pilot. Check the track record, max drawdown, how long they’ve been trading, and how they handle ugly months, not just the highlight reel.