PAMM

Percentage Allocation Money
Management Solution

Collaborate with QBN Global and experience the advantages offered by a
Percentage Allocation Money Management (PAMM) solution.

PAMM Account Overview

Percentage Allocation Money Management (PAMM) is a solution where a professional account manager executes trades on behalf of clients. In this setup, the account manager acts as the Fund Manager, while the clients are the Investors. The PAMM account allows investors to pool their funds together, providing them with access to professional fund managers and their trading strategies.

How Does PAMM Work?

Investors often face capital limitations when trading independently. To overcome this challenge, a PAMM account allows the Fund Manager to pool funds from multiple investors into a single trading strategy. Investors receive a share of the profits proportionate to their contribution to the PAMM account's capital. For Fund Managers, a PAMM account provides access to significant funds and an opportunity to earn a performance fee. It serves as an effective means for investors to access high-capital trading strategies. Typically, the returns are shared based on the investors' contributed amount as a percentage of the total PAMM account's capital.

PAMM Account Example

To understand the setup and participants involved in a PAMM account, let's walk through an example. The key participants are: • The forex broker (QBN Global) • Money managers (Fund Managers) • Investors Now, let's consider three investors: Investor A, Investor B, and Investor C. They aspire to trade the forex market using a PAMM solution and decide to collaborate. To make this possible, they each open individual PAMM accounts with Vantage, the forex broker. An experienced forex trader takes on the role of the Money Manager and becomes a QBN Global PAMM Fund Manager. By doing so, the Money Manager aims to optimize their earnings through successful trades and earn a performance fee. Investors A, B, and C select this Money Manager as their Vantage PAMM Fund Manager to trade on their behalf.

In this example, Investors A, B and C pool their funds together where they invest $50,000, $35,000, and $15,000 respectively. The total investment amounts to $100,000. The Money Manager charges a 20% performance fee on the earnings.
Let's assume that during the investment period, there is a 12.5% gain, resulting in earnings of $12,500. After deducting the performance fee of $2,500 (20% of $12,500), the remaining $10,000 is distributed among the participants based on their share of the pool:

• Investor A: Receives 50% ($5,000) of the net earnings
• Investor B: Receives 35% ($3,500) of the net earnings
• Investor C: Receives 15% ($1,500) of the net earnings

This example demonstrates the potential advantages of using a PAMM account. By pooling their funds, investors can leverage the expertise of professional traders and distribute earnings based on their respective contributions.

Why do You Choose a PAMM Account?

PAMM accounts provide investors with an opportunity to leverage on the expertise of other investors, and pools funds together for potentially larger returns. QBN Global facilitates this by offering unlimited investor admission into each of the funds. Moreover, the Fund Manager retains complete control over all trading decisions, ensuring efficient execution and management of the fund’s trading strategy.