Please review this PAMM account !!!!!!

sureshkumarbb

Recruit
Messages
2
Well.. Let me tell you all my story before I ask this thing.
8 yrs back I clicked on those Google ads appear while browsing that Forex is fortune and I am missing on it. Thats how I thought of Disneyland with money minting machines and successfully lost a fortune. I was completely broke that time and lost my home, job everything. Uff.. It took 5 yrs to come out of that mental state for me and my family and now I can say that I am settled down back with a home and job.

But, all these years I always believe that Trading is for those who has discipline in trading and so they can make some consistent profits in the long term.

I firmly decided not to trade byself ever again this life and also I dont want to take time to learn trading also as its just not my cup of tea. But, I want to invest some amount (that amount I really wont bother if I lose now) with someone who trades for me and in return some profits out of it. Well, you are right. I am taking about PAMM accounts.

Recently I was following one PAMM account in Hotforex and below is the link.

pamm.hotforex.com/hf/en/managerdetails.html?managerID=1136012

I was really impressed with the number of days its open, max drawdown which is low, consitenct profits and most important thing is that Managers capital is alo huge in this account.

I really need some valid points to choose this or not to choose this from your experiences.
 

Pharaoh

Colonel
Messages
19,844
Check the floating P/L vs the profit from closed trades.

Profit $274,737.52
Floating P/L -$101,742.91

This looks like holding onto losing positions and hoping the market eventually turns around. It's also a sign that hard SL are very likely not used. Yes, there's profit, but with this sort of lack of risk management, a margin call could be triggered by a large market move against open positions,

When could this happen? It could happen today. It could happen in a month or a year or 5 years. The problem with poor risk management is that you never know when it's going to come back and bite you.
 

sureshkumarbb

Recruit
Messages
2
Thats great catch actually which I missed it. In this case, I didnt understand why this account is showing only 1.99 % drawdown when actual Floating P/L is more than 1.99 % of its equity. I didnt understand why drawdown is low basically. Am I missing any logic here? Please correct me.
 
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