Frequently Asked Questions (PAMM Clients)

Interested in trading the Foreign Exchange (FX) market for an income, but don't have the time or know-how? Then PAMM accounts may be a good choice for you. Percentage allocation management module or PAMM, is a form of pooled money Foreign Exchange (FX) trading. 

This unique kind of trading setup allows Clients to allocate funds to the Master Account of a qualified Master Trader who in turn uses these pooled funds in his Master Account to trade the FX market with an aim to generate profits for Clients.

As a PAMM Client, you shall open a FX trading account in your personal or corporate name with our licensed broker and fund it with a Minimum Capital of 5,000 USD (This Minimum Capital Requirement amount may change without prior notice). 

Once your account is approved, it will be linked to our PAMM Master Account and trading in your account shall start immediately. Now you can sit back and relax and let our algorithms trade for you 24/5 while you go about with your life. 

As a PAMM Client, there is no purchase or subscription of algorithms needed, however, all profits generated in your account shall be shared with us at the current rate of 20% based on the High-Water Mark methodology as our Performance Fees.

Only YOU have the ownership and control over your account if the account is opened in your personal name. If the account is opened in the name of a corporate, then the corporate has the ownership and control over the account. This is to say that only you or the corporate have the ultimate ownership and control over the funds in your account respectively.

At ALGOINSIGHTS LIMITED, we do not have ownership and control over Client's account whatsoever. 

Assuming there are three Clients - A, B, and C. Each funded their account with different amounts -  A (50,000 USD), B (30,000 USD), and C (20,000 USD). The Master Trader trades the entire pooled capital of 100,000 USD in total, in his Master Account. (the Master Trader trades on his Master Account; he has no access to the Client's funds and is NOT permitted to withdraw funds at all). 

After 1 month, the Master Trader makes a profit of 12,500 USD, and because in this example, his Performance Fee is 20%, that equates to 2,500 USD for the Master Trader. This leaves 110,000 USD in the Master Account. The 10,000 USD profit made will now be credited back to the Clients' accounts based on the percentage of their share of capital in the pool. Therefore, A would receive 5,000 USD (50%), B would receive 3,000 USD (30%), and C would receive 2,000 USD (20%).

A high-water mark is the highest peak in profit value that an account has reached. The high-water mark ensures the Master Trader does not get paid his Performance Fees for poor trading performance. If the Master Trader loses money over a period, he must get the profit value above the high-water mark before receiving his Performance Fees. A high-water mark guarantees that Clients do not pay Performance Fees twice for the same amount of performance.

For example, assuming a Client opens his PAMM account with 500,000 USD with a Master Trader that charges a 20% Performance Fee, which is quite typical in the FX industry. Assume that after the first month, the Master Trader makes a 15% return. Thus, the Master Account is now worth 575,000 USD. The Client owes a 20% Performance Fee to the Master Trader on this 75,000 USD gain, which equates to 15,000 USD. At this point, the 575,000 USD is considered high-water mark and the Client is obligated to pay 15,000 USD to the Master Trader.

Next, assume the Master Trader loses 20% in the next month. The Master Account is now worth 460,000 USD. This is where the importance of the high-water mark is noted. A Performance Fee does not have to be paid on any gains from 460,000 USD to 575,000 USD (a.k.a. Loss Recovery), but only after the high-water mark amount of 575,000 USD. Assume that in the third month the Master Trader unexpectedly earns a profit of 50%. In this case, the value of the Master Account rises from 460,000 USD to 690,000 USD. Without a high-water mark in place, the Client owes the original 15,000 USD fee, plus 20% on the gain from 460,000 USD to 690,000 USD, which equates to 20% on a gain of 230,000 USD, or an additional 46,000 USD in Performance Fees to the Master Trader.

The high-water mark prevents this "double fee" from occurring. With a high-water mark in place, all gains from 460,000 USD to 575,000 USD are disregarded, but only gains above the high-water mark are subject to the performance-based fee. In this example, beyond the original 15,000 USD in Performance Fees, this Client owes 20% on the gains from 575,000 USD to 690,000 USD, which is an additional 23,000 USD.

In total, with a high-water mark in place, the Client owes 38,000 USD in Performance Fees, which is 690,000 USD less than the original capital of 500,000 USD multiplied by 20%. Without a high-water mark in place, the Client owes a 20% Performance Fee on all gains, which equates to 61,000 USD. A difference of 23,000 USD. The value of a high-water mark is unquestionable.

In simple language, if your current profit is NOT greater than the previous high (a.k.a. peak) in profits, you get to keep 100% of your current profits. There will NOT be any distribution of profits from your account until your current profits is greater than the previous high (a.k.a. peak) in profits.

Yes. Definitely.

You can withdraw your profits at anytime you wish. Just make your withdrawal request known to our partner FX broker, Axi through their client portal on their website. Your withdrawal request will then be processed and funds will be sent to your designated bank account within 2-3 working days. 

Yes. Certainly.

You can top up your account at anytime you wish. There are several methods you can use to top up your account. Please visit the client portal on our partner FX broker website and choose the best method for your top-up. 

No. 

There is no lock-in period for our PAMM Clients. You are free to subscribe or unsubscribe to us as you wish. No questions will be asked. Please take note that all open trades in your account shall be closed immediately when you unsubscribe from our PAMM service and any funds (after profits and losses) remaining in your account thereafter shall be returned to your trading account accordingly. Should you need any advice before unsubscribing, you may contact our partner broker, Axi.

However, our experience has shown that Clients who stay with us for the long haul are many times more profitable than Clients who are short-term. If you are looking for short-term and fast profits, then our PAMM service may not be appropriate for you.  

No. 

We do not accept third-party payments or cryptocurrencies from Clients. All payments must be made from the registered bank account of Clients. We support global efforts to combat money laundering, terrorism financing and proliferation financing.  

No. 

We are a legitimate company and operate a legitimate business. As such, we do not guarantee our Clients any level of profits whatsoever. Doing so is against our work ethics and illegal. Our Clients know and accept the fact that nothing is guaranteed in the trading and investing universe. They know that money is only made based on sound trade logic, prudent risk management, and high win-loss probability. They know any guarantee of profits in FX trading is probably a scam or a Ponzi scheme. Please ensure you know the trading risks involved before you subscribe to our trading strategy and become our PAMM Clients.

To date, we are probably the only company in the FX trading universe that apply our own funds into our PAMM Master Account and use the same suite of trading algorithms as our Clients in our PAMM Master Account. We believe in getting our skin in the game and believe in one simple philosophy - What we want for our trading account, we want the same for our Clients. This is our promise to our Clients.

At the end of each trading day, you shall receive in your email a copy of the Daily Statement of all trades that had taken place in your account over the last 24 hours. This statement is sent directly from our partner broker, Axi to you. From this statement, you can do your calculations of daily ROI in your account. 

Alternatively, you may use the Monthly Profit Sharing Statement as a guide to determine the monthly ROI of our trading strategy in your account. This statement is also sent to your email directly from our partner broker, Axi.

We do not claim to have the best trading algorithms in the world, that would be a false statement. But we do our best to grow the equity in our Clients' accounts and share our profits accordingly. 

In our PAMM Master Account, we employ a multiple algorithms, currency pairs, and time-frame approach as our main trading strategy. Each algorithm would execute trades independently on each currency pair and at different time frames covering the short and long term profit taking. 

In this manner, Clients can minimize their risk exposure in the market, mitigate their losses (if any), and, in most cases, maximize their gains. This approach to trading the FX market has proven its worth to be a sustainable, conservative, and yet profitable strategy for all.   

Please refer to our strategy description on the Leaderboard in our PAMM portal for more information.