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Get Control of Your Trading with RAMM Account

By:
Bob Mason
Updated: Jun 25, 2018, 13:34 GMT+00:00

Risk Allocation Management Model, more commonly referred to as RAMM is a new investment model based on modern risk management principles, incorporating the best features of PAMM accounts and signal auto-copying services.

RAMM Account

What is RAMM Account?

Risk Allocation Management Model, more commonly referred to as RAMM is a newly introduced trading and investment platform available on NordFX that allows you to control acceptable risk levels.

RAMM, a new investment model based on modern risk management principles, incorporating the best features of PAMM accounts and signal auto-copying services.

The platform has been created to give traders and investors far more efficient and trouble free investment experience, with investors able to take more control over their investments when copying trading signals of a particular trader, while traders have the comfort of the auto-copying services for their investors, amongst other key enhancements from PAMM accounts.

Traders look to increase profits by managing their money and also keeping a percentage of the profits earned by their investors.

For the investor, RAMM investments provide a medium giving investors direct access to other trader’s experience, by allowing investors to directly copy a trader’s transactions.

For traders, the RAMM platform provides the much-needed efficiency that is needed to ensure that investor investments into a particular strategy have the correct entry and exit prices, as well as the correct allocations, aided by the self-copying functionality.

RAMM vs PAMM

Portfolio Assets Management Models (“PAMM”) and Risk Allocation Management Models have some distinct differences to consider, with RAMM having some significant advantages to PAMM accounts.

Both PAMM and RAMM accounts offer:

  • 100% Copying Precision
  • Independent of the Investment Amount
  • Loss Limitation
  • Exact Execution of Obligations between Managers and Investors
  • Possibility to trade independently on the investment account

Key differences between RAMM and PAMM accounts can be summarised as follows:

  • Instant Execution of Investors’ Orders
  • Automated Risk Management
  • Individual settings for investments and asset management parameters
  • Possibility to diversify investments

The Benefits of RAMM Account

RAMM allows you to invest in several trading strategies at once using a single account, while also being able to trade independently or with the help of expert advisers, allowing users to, not only receive income as an investor but also as a managing trader.

Key benefits to having a RAMM Account include:

For Investors:

  • RAMM automatically opens new positions for an investor as soon as the managing trader opens new positions.
  • There are no slippages, re-quotes, missing instruments or even difference in trading sessions for the investor, with RAMM’s quality copying ensuring that positions are copied accurately.
  • Security of investor funds on the RAMM platform, where the investor determines the level of capital protection, with any breach of limits leading to a suspension of trading for the account in question.
  • RAMM stats are already inclusive of all fees, freeing investors from price manipulation, ensuring that the investor makes the same returns as the managing trader.
  • All trades opened are copied into the investors’ accounts real-time.
  • Investors do not require trader approval for executions that can include but are not limited to liquidation, risk adjustment, investment into a trading strategy.
  • Low entry barriers, with account deposits of as little as $50 needed to open an account of a managing trader and just $10 to start the investment process.
  • Investors are not limited in the number of accounts, allowing investors to not only diversify through a number of trading strategies but also create real investment portfolios of their own.
  • Managing trader ratings provide investors with the needed transparency to select the most favorable strategies and trader ranking.

For Managing Traders:

  • All transactions are copied automatically for traders’ investors, removing the need for traders to adjust positions or provide confirmations for investor order executions.
  • As investors select their own risk profiles, a particular strategy may ultimately cater for both conservative and high-risk profile investors, with the trader free from any need to act on behalf of the investor.
  • Performance-based fees from investors are received on a weekly basis from each strategy, with performance fees defined by the trader before an investor copies the first trade.
  • There is no cap to the number of accounts a trader can have, allowing multiple trading strategies.
  • Low barrier to entry with minimum investments for a trader set at $50.

NordFX is a reputable international broker established in 2008, offering a full range of online trading services in the Forex market not only in currencies, gold, and silver but also in most popular cryptocurrencies (Bitcoin, Ethereum, etc). Investments in global stocks with high income, with capital protection up to 100% and RAMM, the newest system for automatic copying of trade signals, are among services provided. NordFX is also recognized for its minimal spreads, immediate order execution and a leverage ratio of up to 1:1000.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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