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