Considering the topic, I continued to exercise, in the compilation of PAMM portfolios, and took first place in the Portfolio of the Week competition. Considering, that I participated only for the second time, I think the result is not bad. All details on investflow.ru
Rubbing your palms, waiting for the prize, I decided to fulfill the promise made the day before, and share your thoughts, in terms of competent selection of managers, and putting together the right portfolio. First, a few words on topics, who is not yet involved in this madness. Do not meddle, you are welcome, in PAMMs. Money burns - take a trip to the casino, or on vacation, give someone. Loss probability, in this event is very high, due to human psychology and dealer ratings, misleading newbies. To trading risks, not trading are added. Most of investor funds, brought to accounts with super profitability, merges safely, and settles ... however, let's not speculate. But if you have already climbed, let's see, how can you try to beat the system.
To start, I will conduct a certain conditional classification of PAMM manager accounts, to make it easier to navigate in the future.
1. Superaggressive PAMMs - profitability from 300 up to several thousand percent per month. Potential kamikaze with 100% probability. Surprisingly, they are very fond of novice investors and ratings. A large share of funds is contributed to them. Here is a typical .
2. Aggressive PAMMs - profitability from 100 to 300% per month.
3. Moderately aggressive - profitability from 30 to 100% per month.
4. Moderate - from 15 to 30% per month.
5. Conservative. PAMMs, with a long history, yield from 0 to 15% per month.
Here I will make a small explanation.. Naturally, there are also unprofitable months, and we take the approximate average profitability on a profitable site, when the vector is upward, excluding the earliest period, when most managers, using low base effect, tries to overclock the account and some even succeed.
For a balanced portfolio, from eight to twelve PAMM accounts are enough, from various managers, taken, necessarily, in equal proportions. Take less - increase everyone's share, respectively, in case someone is drained, the portfolio will sag more. For a large number, harder to follow, and the meaning of a special, diffuse efforts, I do not see. Over-aggressive and aggressive accounts, we immediately discard. Previously, I am clearly , what to invest in them, tantamount to playing roulette. Share of moderately aggressive accounts, should not exceed 25-30%. This is the main factor of portfolio growth, but in case of a serious drawdown, one or two of them, the portfolio will stay afloat, and if you lose weight, not much. The rest of the portfolio, divide equally between moderate and conservative accounts. Some will maintain small profits, others - stability. well, this, ideally, of course. On practice, all, often sadder.
Now, let's move on to the most interesting, selection of managers. There are a number of postulates, but they are all quite controversial.
First. PAMM lifetime. It would seem that, logical, the longer, all the better. But, Besides, you need to look at the number of transactions, which will give a much more complete picture. For example, it is possible for six months, go once or twice a month, take 5-10 points of profit, to sit over, and not fix the loss. Respectively, the administration could simply bind, all this time.
Second. Large capital of the manager. Also logical, but nothing promising factor. PAMMs, with KU c 3000 Dollars, sometimes merge as well as with 1500 rubles. Examples of LPI, where millions of their money are lost, before everyone's eyes. About the seriousness of intentions - I suppose, manager, invested 100 Dollars, but the leading account is several tens of thousands, during a year, no less motivated, than control, invested 3000 USD.
The third. Loading deposit – counts, what the less, all the better. But this parameter, separately taken, doesn't say anything either. Loading may occur due to the simultaneous opening of positions on different instruments, multidirectional, hedge type, and so on. Therefore, consider loading, follows in conjunction with a drawdown on open positions. In the picture below, example of competent work of the manager. Even with aggressive trading and loading in 80%, at the initial stage, drawdown did not exceed 13%. Ie. risks were very well controlled.
Let's look at some graphical examples.
Below, we see a picture, with a ladder of profitability so attractive for investors, without pits and dips, but looking at the ratio of funds and balance, understand, that you have to run away from here, like the hell from incense. PAMM is in permanent, wildest drawdown, but depositors' money continues to flow. I guess, what big equity holders, it's already difficult to get out, if at all possible, because. this will inevitably lead to the closure of positions. Except that, withdraw in small batches, piecemeal.
Another example. It is seen, that the problems started in October. Significant discrepancy between funds and balance, which did not take place as a one-off splash, what is permissible, and ever increasing. As a result, positions, obviously, were closed forcibly, and schedule profitability, painted, well known to all forex traders "poker".
Below, former leader of the rating. Beautiful graph, at the first stage. On 158 profitable trades - one unprofitable. Tens of millions of investor funds. It is seen, that the loss was not recorded, drawdowns, Sometimes, exceeded 40%. As a result, on one of them, depositors began to leave en masse, by triggering a forced closure. Then a black streak began.
Another common option, when after the "poker" there is a sharp recovery of the score, in one or two transactions. In these cases, Martingale takes place, or martingale cube. The manager bets on everything, to recoup the loss. Naturally, such accounts, also need to be bypassed.
And this is what the schedule looks like with proper management.. Loss - fixed, significant drawdowns - not allowed. Maybe, it is not so aesthetically pleasing, and pleases the eye, but right, and much safer.
That's it for today, hope, to someone, my recommendations were helpful and saved money. According to the "People's" portfolio, unsubscribe, I guess, a week later. Basically, he is fine, and those who wish can watch it .
