Investor digest for Q4 2018
Hello fellow traders and investors!
As usual, with the beginning of the new quarter, our website publishes statistics of the managers of PAMM accounts of Forex brokers Alpari, Roboforex, Instaforex and Forex4You, including an analysis of their performance and a review of achievements, as well as a selection of promising accounts created recently.
The review pays attention to the topic of cryptocurrencies, summing up the results of the past quarterly changes in trends and trends and contains a selection of the main news on this topic.
At the end of the digest, an interview with a successful manager was published, in which the reverse side of working with investor funds was disclosed, answers to questions about milestones and motivation for choosing the Forex market were given.
The end of summer and the beginning of autumn in the foreign exchange market can be described as a failure and a new repeat of the attempt to strengthen the US dollar. As a result, quotes of the main pairs spent a quarter in the “volatile saw” - the most dangerous flat pattern for most deposits.
Trend trading systems predominate in the strategy of traders, and trading in the range is used by a small number of bidders and only in strictly specific areas of night trading. The published rating and review of PAMM-accounts will help to understand which of the managers turned out to be the most prepared for this difficult trading season.
The cryptocurrency market during this time made three attempts to “break away from the bottom”, each time returning to the minimum values of the year. For traders, the quarter will be remembered for the tragic fall of Ethereum, which lost second place to Ripple, expectations of institutional investors and offers from exchanges to engage in index investment.
Cryptocurrency Market Prospects, Overview of Key News and Upcoming Events
Digital currencies managed to maintain a capitalization level of $ 200 billion, but trading volume still remains low, which is the main reason for the return of the Bitcoin and altcoins rate to the minimum of the year.
In the quarterly segment of capitalization presented, there is a surge in interest in digital currencies, which doubled the intraday turnover by several days, which led to an increase in the rate of digital assets.
This is a reaction to the decision of the SEC Regulator to review applications for the creation of the Bitcoin ETF. Traders believe that official recognition in the US of a mutual investment fund in cryptocurrency will “open the door” to digital assets for institutional investors.
Cryptocurrency exchanges awaiting institutional investors
The Securities Commission promised on October 26 to give an answer that will largely determine the trend in the rate of digital assets. Another important fundamental event before the New Year for this market will be the adoption by the heads of state of the first joint declaration on digital currencies at the G-20 summit in November.
Cryptocurrency exchanges are actively preparing to accept funds from institutional investors, opening for them:
- Services of “cold” storage of digital currencies, isolated from the Internet, with asset insurance;
- OTC platforms for buying and selling large volumes of Bitcoin and a number of fixed-price altcoins;
- Index funds and new types of deliverable futures.
“Heavyweights” joined this process:
- Black Rock is considering participating in the projects of the crypto broker Coinbase (the largest by the number of traders);
- ICE Exchange launches Bakkt platform with a one-day futures turnover secured by the supply of real Bitcoin;
- TD Amitrade brokerage house (11 million trading accounts worth $ 1.2 trillion) is developing a platform for trading futures for 4 types of cryptocurrencies.
This activity is explained by the fact that, according to the Washington Street Journal, professional investors are already included in cryptocurrencies, preferring over-the-counter transactions, the daily volume of which is three times this figure on cryptocurrency exchanges.
The past quarter revealed an interesting detail - the world's leading universities have invested their own funds in cryptocurrency. Among the investors of crypto funds were: Yale, Harvard, Stanford, MIT, Dartmouth College and the University of North Carolina.
Indices - the new "digital chip"
In the face of a fall in the value of digital assets, the sites are trying to attract or retain traders by launching indices that enable diversified investment in the cryptocurrency market:
- Huobi Exchange has opened an HB10 fund to buy / sell an index based on 10 cryptocurrencies;
- Similar index funds were opened by the American crypto broker Coinbase and the South Korean exchange Ubpit;
- SnapeShift is preparing a service for the simultaneous exchange of fiat currencies for several altcoins;
- Startup Abra released a smart contract with an automatic algorithm for calculating the exchange rate for 10 cryptocurrencies.
Each index has its own system of choosing the composition of assets and the distribution of "weights" - coefficients of a basket of coins. However, as this quarter has shown, even a reliable, at first glance, asset can fail an investor.
The fall of Ethereum
The strong and prolonged fall of Ethereum, the second largest Coinmarketcap capitalization rating, alarmed investors. Altcoin has repeatedly updated at least a year. In an attempt to explain the fall, analysts call such reasons:
- ICO fund sales by startups to prevent depreciation of collected ETH;
- Disagreements in the Ethereum Alliance development team with Vitalik Buterin;
- Tightening the hard fork Constantinople;
- Refusal to protect ETH mining using specialized ASIC chips.
It should be noted that in terms of the ratio of the current exchange rate of the coin and the cost of production, Ethereum was overrated. For example, Bitcoin almost equaled the limits of the cost of mining at $ 6,000, while for Ethereum they were $ 170-200. Therefore, some analysts point to the inevitability of equalizing the price of the second most important cryptocurrency with the Bitcoin price, which previously reached these milestones.
The figure below combines two quarterly charts of Bitcoin and Ethereum, where the approximate mining cost area is indicated. When the exchange rate drops to this price level, both cryptocurrencies “feel for support”, only in the case of ETH it was achieved much later than that of BTC.
At the beginning of the year, in a review for the II quarter, we considered a strategy for trading stablecoins - fiat crypto analogs, which the issuing company agrees to accept at a one-to-one exchange rate with an associated currency. At that time, there was only one token (USDT), pegged to the US dollar, but by the third quarter several startups had announced the development of their own solutions.
To date, several varieties of stablecoins pegged to the US dollar are traded on exchanges:
- USDC (USD Coin) - issuer: Circle, trading place - Poloniex exchange;
- True USD (TUSD) - issuer: TrustToken, place of trading - Binance and 32 more sites;
- CK USD - issuer: Canadian CK Group, trading place - BCEX;
- Paxos Standard Token (PAX) - Issuer: Paxos Trust Company, trading place - Binance;
- Gemini USD (GUSD) - Issuer: Winklevoss Brothers Exchange, known after the scandal with copyrights to create a Facebook social network;
- USD Anchor is preparing for release - issuer: StrongHold.
Some tokens “crossed” at the same sites, which allows arbitrageurs to “catch” their deviations from the 1 to 1 exchange rate, earning on guarantees of such an exchange on the part of issuers.
According to insider information, there may be a “battle for dominance” in the cryptocurrency market between the crypto-analogs of the US dollar and the RMB stablecoins, the creation of which is being prepared to sponsor the People’s Bank of China.
Cryptocurrency news: IPO Bitmain, from tokens to altoins, crypto BitTorrent and cryptoOpera
Vitalik Buterin, thanks to the creation of Ethereum, opened for startups the opportunity to raise funds for ICOs by launching on the blockchain smart contracts issuing “their own cryptocurrency”, or rather, tokens. Funding allows you to implement the project in the parameters and terms stated in the White Paper, and investors can receive income from the growth of the rate of tokens that are traded on cryptocurrency exchanges.
When the product is ready, the startup launches the blockchain and exchanges tokens for altcoins (1 to 1). Over the past quarter, EOS and Tezos projects have acquired their own network - both are competitors of Ethereum, supporting smart contracts, and at the same time having higher productivity and speed of transactions.
Despite the fact that the ICO has become a kind of replacement for the IPO, some companies from the world of cryptocurrencies use the usual form of attracting investments. The most anticipated news was an application for an IPO of mining giant Bitmain, which produces 70% of Bitcoin and altcoin mining equipment, combining more than 40% of the Bitcoin network hash.
The initial IPO fees were $ 8 billion, which would exceed Facebook's posting. Investors were ready to shell out money for the fact that in three years the company increased its income to a level comparable to NVidia, but an unsuccessful attempt to go “against the market” and support the falling Bitcoin Cash coin could result in billions in losses for the company.
Cryptocurrencies slowly and quietly take a place in everyday life:
- Opera browser will soon be supplemented with a pre-installed crypto wallet and the ability to work with blockchain applications;
- Cryptocurrencies will be rewarded for supporting torrent tracker seeds.
The latter is made possible by the acquisition of the BitTorrent client by the Tron network. The company has promised to soon introduce deductions for maintaining the distribution of torrents. Users will receive TRX digital currency on their open wallet, which can be exchanged for real money.
PAMM of the month
At the beginning of the review, we will choose among the accounts of managers the best PAMM of the month, subjecting it to a balanced assessment of the ratio of profitability and risk and comparing the losses with the type of strategy. The accounts of managing brokers Alpari, Roboforex, Instaforex and Forex4You participate in the selection, but traders from Alpari are the winners in this nomination several times in a row.
Obviously, this is due to the fact that the company was the first to offer such a management system in 2008 that guaranteed the observance of the offer by the manager and the investor making profit.
The demand for PAMM is determined by the investment of $ 200 billion in funds from more than 5 thousand investors. From 2008 to today, investors have received $ 120 million in profit. These figures should dispel the illusions of those who consider trust management on Forex a source of profitability of a thousand percent per annum.
PAMM is an opportunity to entrust funds to a talented trader who is interested in monetizing the developed trading system, which frees the investor from finding his own strategies, but risk control is a prerequisite.
Choosing the “PAMM of the month” nomination for a 30-day period, you can find high results in the list of “new names” of traders or their strategic finds for which a separate account is opened. According to the experience of the PAMM analysis, investors who join at the first stage can very likely expect two to three months to keep the manager showing the high results shown at the start.
Investments of this kind are deprived of the possibility of analysis from the point of view of “historical stability” in the long term, therefore they should be treated as venture, limited to a small amount. If a PAMM investor uses a portfolio approach, then the month account can be used as a diversification of investments.
A manager’s account with the nickname AHMED, whose 30-day yield was 18,228%
Despite the small history of the account, the manager:
- Actively reinvests, bringing its equity from the original $ 4 thousand to $ 37 thousand;
- Opened in parallel 4 accounts with highly growing profitability and various trading algorithms;
- Increases position (shoulder) in the development of a trend, combining a pyramid with a trailing stop. Probably used martingale
The disadvantages of the strategy include a high risk of ruin for follower investors, maximum drawdown reaches 81.57%. Therefore, it is important to determine when to trust an investment to an AHMED manager.
A trader can take advantage of graphical analysis and conduct trend inclined support along the line of profitability. Its breakdown will be a signal for transferring funds.
It must be remembered that such investments should be either time limited or transferred to breakeven as a result of active withdrawal of profits.
Overview of PAMM accounts of Alpari brokers
One of the important indicators that guarantees for the investor in the future return on investment from the manager is a long-term, stable and profitable result.
The first lines of the current review of PAMM-managers will be devoted to the long-term profitable accounts demanded during the crisis, the “ghost” of which has recently been scared by Forex analysts.
The account of the manager of Hohla, who has been trading with the Alpari broker for seven and a half years, fits this criterion, the strategy was discussed in more detail in the last digest.
Over the past quarter, the trader was able to improve the result to 49% annual return at maximum drawdown of 61.62%that happened in early 2013.
The positive aspects of the manager of Hohla are:
- Compliance with the declaration (undertaken risk management obligations) throughout the entire trading period;
- A significant reduction in risks, as can be seen from the level of leverage and an increase in the “profitability” of the algorithm, since the strengthening of risk management did not affect the profitability chart of the strategy.
The quarterly profitability of the account was 14.8%, which is significantly higher than the results of the previous quarter at 3.8%.
Yielding to the requests of investors, the PAMM-manager implemented more aggressive strategies, which affected the results of the accounts:
Hohla RUR X1 + 718.6% for 6 years, last year + 38.3% profitability at maximum drawdown 57.82%, according to the results of the last quarter, the manager showed 13.9% profitability.
Hohla Aggressive + 220% yield for 3 and a half years of trading, 2018 the trader ends with a return of 72.5%, drawdown level maximum daily loss of 20.3%. The trader successfully combined gold and a pair of EURUSD on this account.
The record holder for longevity is the Alpari client’s account with ten years of experience, he first got into the review, since the return on Igonter was lower than the banking one at about 3%. However, with a certain technical approach - investing using technical analysis - investing traders can benefit from the stability of the profitable result. This proves the last annual result 65.1% and quarterly at 9.3%.
Trader fails to increase the aggressiveness of the shoulder, which led to a maximum drawdown of 64.16%, which is justified by the maximum profit of 540.78%.
Considering the chart of the trading style according to the histogram of the size of the leverage, the averaging tactics become obvious, but the manager does not use martingale and sharply reduces the risks when the position becomes profitable.
Given the constancy of the trading system and risk management for 10 years, you can trust the strategy, given the entry factor at the pullback.
Continuing the topic of stability of a positive result over a long period of time, the digest includes an overview of the portfolio of the manager of Stability, known to regular readers of the quarterly collection of PAMM accounts on the site for 2015-2016.
The trader showed excellent results in the 2014 segment, raising the overall return on the 10-year segment to 1901.4%. The score was “forgotten” due to a sharp decrease in performance in the subsequent “four-year period”, as can be seen in the figure:
At the moment, the trader’s performance is 0.4% per annum, whereas quarterly results are 0.1% with a maximum drawdown of 50.34%received 8 years ago. The trader no longer allows such values, limiting losses in the declaration to 24%, keeping the maximum drawdown of 0.59% for 2.5 years.
The manager independently limited the leverage to the size of 1 to 25 and increased the amount of equity to 1 million rubles in which the account deposit is nominated.
Traders who are not satisfied with this kind of profitability can invest in other PAMM portfolios of a manager using fully automated trading, with various algorithms and stably high amounts of equity.
Stability Turbo - an offer is open for 4 years, the claimed possible loss of 20%, but for 3 years and 11 months maximum drawdown does not exceed 15.04%. Wherein last year profit was + 1.9%, quarterly + 0.8%.
The PAMM account of the manager of Expensivebuyer was published in 2016 ratings, because as can be seen from the graph of the yield curve constructed over 8 years, starting in 2015, the trader significantly increased the profitability of the strategy. Over a three-year period, it has grown 10 times, the result of the last year + 137.9%.
Account “dropped out” of reviews for two years due to maximum drawdown 86.28% in 2014 and the “flat” result for 2016-17. The trader has "returned" to the digest for reasons:
- The new version of the trading robot, where the maximum drawdown of 65% is observed for a year and two months;
- Real equity growth in 2018.
The Alpari broker maintains its own rating system, marking PAMM accounts on a five-point scale and a place in its own rating. An interesting fact - among the portfolios presented at the time of the IV quarter, none of the managers received five stars.
The first place in the broker rating is occupied by the ECNC trader, known for the I quarter of 2018 digest. From this moment, the portfolio yield added 100%, amounting to 959.6 in 2 years and 2 months.
Current annual return "Mined" by a trading robot, amounted to 123.2%, whereas maximum relative loss of 39.97%.
The PAMM portfolio returned to review for reasons:
- Risk reduction - the trader reduced the leverage on positions and trading time;
- Twice the reduced real maximum drawdown - up to 20% for 11 months.
A robot is trading on the account, the trading system “catches impulses”, then following the trend with the help of trailing stops.
In the fourth quarter, the Alpari broker took the portfolio of PAMM-manager Goldclever, which is mentioned by site reviews for 2016-17. The trader showed excellent results in 2016, but disappeared from the digest due to a drain.
PAMM's annual yield is negative - 9.7%, but quarterly results + 0.5%, the current month is closed at + 16.8%. Maximum loss 54.31% due to problems during the two year creep.
The account returned to the review in "advance" due to the September surge in activity of a trader who reconfigured robots, reducing risks. Despite the martingale tactics, the manager actively uses multicurrency diversification and combines three strategies in one portfolio. This allows you to “get out” of losses, but investors should invest from a “support level” that is clearly traceable to the “bottom of the landing” for two years.The MovingUP manager’s PAMM account is in fourth place, but by visual assessment of the stability of the yield trend, it surpasses ECNC and is much better by the result of the Goldclever merger, which is placed by the Alpari broker above the portfolio in question.
Annual return MovingUP Portfolio +84.2% at maximum relative loss + 37.49%, the declared drawdown is not exceeded for the entire duration of the account.
A trader manually trades two pairs EURUSD and USDJPY, using a strategy of breakdown of levels based on indicators of technical analysis.
Another successful visualization of growth constancy is the strategy of the night scalping of the Smply_The_Best trader, bringing investors a relatively modest 167.4% for the year and 9 months of the manager's work.
In the last review, we advised paying attention to this PAMM account ending a year with a result of + 73.9%, who followed the advice and earned on investments + 5.7%, while the trader did not go the maximum loss level is 19.19%.
Wunderbar-Invest is another night-flat trading account that has also consistently shown profit growth for two and a half years. The manager took the first places in the Alpari rating and twice visited the reviews of the first and second quarter.
Unfortunately, the III quarter was unsuccessful, but the last three months have been + 8.6% profitable, the year ends with a result of + 33.4% wherein maximum loss for all the time the account has not exceeded 16.87%.
Despite the fact that the trader is averaged, he tries not to exceed 1.5% of the risk per trade and uses EURGBP, EURJPY, GBPCAD, GBPCHF and GBPUSD for trading.
The aggressive trading style review section is opened by the manager Moriarti, constantly monitored in digests since 2016, who added 13.4% profitability over the past quarter, while ending year with the result 115.3%.
Despite for a maximum loss of 73.51%, trader again got into the review for the reasons:
- Consistent risk reduction (reduction in leverage);
- Compliance with drawdown parameters not exceeding 45% for a year and a half;
- Profitability of 45,417% for four years of PAMM-management.
Pay attention to the relatively young account of the manager of LomoTry, which was not considered earlier in our reviews due to the small history of trading and a high level of leverage. The manager’s strategy is only gaining momentum by showing yield 3644.1% per month of bidding at maximum drawdown of 30%.
The trader got into the review due to a decrease in leverage, which did not affect the subsequent increase in profitability:
The only negative - the PAMM-manager for the 124th time trying to find a profitable strategy.
The PAMM account Lucky Pound has been participating in reviews on the site since 2016, traders have chosen the strategy as the best, "having voted in rubles." The account attracted $ 800 thousand of investments and brought profitability of 2681.8% for 4 and a half years.
Throughout the year manager showed yield 22.7%, at maximum relative loss of 41.13%. The past quarter was unsuccessful - the manager went to minus 6%, with 4% in the last month.
Traders can invest in another account of this manager - Sphere - diversified by trading simultaneously on two instruments EURUSD and GBPUSD, unlike the first PAMM solo portfolio. The rest of the strategies are the same - a breakdown of the level and following the trend, with losses there is an increase in leverage.
Diversification did not allow to obtain a higher result of total profitability, but year ends twice as good as Lucky Pound with profit + 58.8%but maximum relative loss above the first account - 53.14%, although for two years the manager’s risk level has not exceeded the drawdown of 23%.
PAMM Account TARB-1 is an algorithmic trading that is tied to entering the market during a jump in volatility. In 2018, the manager “twisted” the strategy, which positively affected the results with the same risks. Therefore, the current year brought the trader + 574.5% per annum, with quarterly earnings + 126.4%, the maximum relative loss was 47.82%, what is within the declared risk of the offer declaration.
PAMM account SWISS INVEST GENEVA was first reviewed, as it is a relatively young account, its age 1 yearthat brought investors profitability 1196.7% at maximum drawdown of 45.15%, although the manager hoped not to go beyond a 40% loss.
The strategy of PAMM is scalping for minutes by a robot working according to a similar algorithm on 6 accounts with minimal changes. Two of them are open parallel to this portfolio and will be discussed below.
In this PAMM account, as well as in the subsequent ones, the multicurrency strategy is used for: EURUSD, USDCHF, USDJPY, AUDUSD, whose shares divide the deposit into 4 almost equal parts. Part of the funds invested in crosses AUDCAD and AUDJPY.
SWISS INVEST ZURICH has profitability twice as low - 687% per annum at maximum relative loss of 38.05%. The manager positioned this account as less risky for investments, but could not keep the loss in the framework of the 30% declaration.
The trader reduced the number of trading instruments to three, giving 40% under USDJPY, 35% EURUSD and 23% in USDCHF, having thrown off the remaining deposit on AUDUSD.
An interesting fact - out of three accounts, the SWISS INVEST BERN portfolio was supposed to be the most reliable, the manager made an advertisement for him, urging investors to invest precisely in this strategy. Paradox - the portfolio received the lowest investment of all, the lowest return 147.8% per annum and record maximum relative loss 56.24%The account had one difference from other strategies - the largest part of the deposit was allocated for USDJPY as instruments - about 60%, EURUSD, USDCHF and GBPUSD received a little more than 10% and AUDUSD - about 7%.
At the end of the review, we suggest paying attention to not yet another “young strategy”, the debutant of the digest PAMM Account MultipliCapital. The manager for the year of existence of the account managed to show 892.2% yield, with a maximum relative loss of 40.80%, trading on instruments: USDJPY, EURUSD, USDCHF, AUDUSD.
Rating of PAMM managers of Instaforex broker
Instaforex broker offers investors and managers two types of investments and earnings - copying transactions and directly contributing to a PAMM account.
The most popular investors now enjoy the NS-invest account, which existed one and half year, for which he brought to investors 289.47% of total profit. At the same time, almost half of the revenue came from the past quarter + 125.77%, the maximum drawdown of 26.6%.
STABILITY7 managed to bring investors 130.5% of average annual profit and 22.5% of revenue for the past quarter with a balance sheet maximum drawdown 26.27%. A trader trades a set of strategies from 25 instruments, which include CFDs on stocks, currency pairs and cryptocurrencies.
The PAMM-manager, the long-lived unnamed xxx, who has been conservatively trading for five years, got into the review due to a jump profitability in 2018 amounted to 268.38% per annum. Most of the profit was earned during the past quarter + 205.58%, with a maximum balance drawdown of 15.7%.
The situation is similar for the PAMM manager JAYBON, whose account was in the 3rd quarter digest. Despite the annual yield in 62.18% per annum, trader closed the last quarter with a loss of 10.06%, while remaining at within 28% of the maximum drawdown.
The same fate befell the PAMM account INTEN, which attracted the attention of investors with a sharp, almost 100% rise in equity in the first year of management. But the overall result for a year and a half + 77.25%, trader allowed last quarter loss of 7.76%, but begins to correct the situation, displaying + 9.92% of the last month of trading.
PAMM rating of broker Forex4You
The Forex4You broker, like other companies, offers the trader their own version of the rating of PAMM accounts. Based on this data, the manager of Trinity account, which was not previously involved, got into the current review.
The reason for ignoring the broker version of the “best account” is maximum drawdown 81%, which is offset, according to the rating of Forex4You, by a large total figure of the trader's profitability of 2401.6%. For 2018, the manager brought to investors 418% per annum.
A trader actively trades a robot intraday on one GBPUSD pair, using a grid strategy, without increasing the lot according to the Martingale principle.
Power Manager’s more balanced strategy ranks sixth in the Forex4You rating, which largely depends on the overall profitability figure. This PAMM account was not previously present in the site’s digests, but the stability of the growth in profitability that brought investors 457.4% profit for half a year investment and value maximum drawdown of 23% forced to pay attention to the manager.
The trader conducts medium-term trading in six major currency pairs: NZDUSD, EURUSD, USDJPY, GBPUSD, USDCAD, AUDUSD and crosses: EURJPY, GBPJPY.
For similar reasons, a manager’s PAMM account with the creative name ulitka turbo was chosen. Behind six months of work, the return on investment was 308.27%. Unfortunately, literally the last month brought to the maximum drawdown of 43%. The trader practices Martingale and the increased volatility increased the loss, but the manager managed to quickly recover losses, possibly recounting the step of the grid of orders.
Algo Invest account, whose algorithmic trading gained for a year and a half 261.25% profitability, at maximum drawdown of 24%, It was recommended in the reviews of the 2nd and 3rd quarter of 2018.
A trader trades intraday on the GBPUSD and EURUSD instruments, sometimes making up to 100 transactions depending on the volatility and importance of price levels.
The first place in the rating of the Forex4You broker is still held by the Light of the moon PAMM account, despite the drop in results. Maximum total return among all managers and profit at 631% per annumare not combined with maximum drawdown of 91%.
Such a contrast of the 1st place in the rating and loss indicates the need for an independent analysis of the results presented by the broker before making a decision on investing.
The above findings apply to the manager of Chance, who occupies the third place among the PAMM accounts of Forex4You broker. Over a three-year period, the return on investment was 630.66%, but the result of 2018 would have led investors to 91% investment loss - this is maximum drawdownbut not final, as the score continues to fall.
Overview of RAMM-accounts broker Roboforex
Broker Roboforex practices investor funds management by blocking the allocated amounts that remain on the trader's account. That is, in essence, we are talking about copying control signals, the system is called RAMM.
The Roboforex broker maintains its own rating of advantages and disadvantages accounts, which is described in detail in the blog of the trader Robin Bobin. An interview with him was published in the digest for the II quarter in 2018.
In the selection of the top 5 RAMM accounts, the portfolio of the manager of TBT Y-Link is highlighted - a new face in the review of the site. Manager managed for 9 months this year bring 265% return 157 investors with a maximum drawdown of 40.1%.
The manager trades on seven instruments, investing most of the funds in EURUSD, GBPUSD, GBPJPY, USDJPY, GBPCHF, distributing the balance in USDCAD, EURGBP.
Most investors Roboforex entrusted funds to the RAMM-manager of Modern Rites, previously not included in the reviews, as the account exists six months. During this time return on investment made up 158.1% at maximum drawdown 31.28%.
GJprofit's RAMM strategy portfolio is an example of how you can profitably exploit the specifics of the GBPJPY swing using martingale tactics. The manager only once, at the beginning of the launch of the algorithmic trading, made a maximum drawdown of 28.8%, the rest of the time risk control allowed to reach + 75% per annum, with a stable increase in equity.
The accounts of the RAMM-manager TURBO work according to a similar strategy. On the first TURBO (I) account, the robot “builds the grid” in the GBPJPY cross pair, the control result + 131.41% per annumat maximum drawdown of 35.94%.
The second account builds a grid on EURGBP, the TURBO (II) PAMM account was launched earlier this year and in 10 months brought investors + 64% profitability. The manager got into the rating due to the low level of maximum drawdown of 3.01%.
Interview with Alpari Broker PAMM Manager Hohla
The managing director of Hohla is professionally engaged in trust management in the Forex market, having opened an account with the Alpari broker almost from the moment the PAMM industry appeared.
Currently, the trader maintains five accounts, the first - “Several Systems EUR” will be 8 years old next year, the second will soon celebrate its seven-year anniversary.
The summary profitability result for all accounts is presented in the following chart (in EUR):
Hello, introduce yourself, please!
Are you a “long-lived manager” when and where did your career begin?
I have been a client of Alpari broker since the opening of a demo account in 2004. I was interested in mechanical trading systems (the first name of algorithms and advisers). Passion for programming since childhood + higher education received at MEPhI made it possible to quickly master scripting to implement the developed strategies.
How long did learning and finding a strategy take?
The training and testing process took a long 4 years, the first real account was opened in 2008. The deposit made up 1 thousand rubles. I already had confidence in the operability of the strategy and the goal was to open a PAMM account. Trading was carried out in such a way that the market made it possible to earn on a down payment, which happened a year later - on May 18, 2009.
Is Several Systems EUR “Your Firstborn”?
No, the debut PAMM got the name Skycat Collection of MTS and was closed at a loss in November 2010.
The remaining funds were transferred to a cent account, where a deposit was earned again, which formed the basis for financing Several Systems EUR, as the capital of the manager.
What brings you to the forex market?
Beginning of acquaintance with the Forex market was put by an advertisement, thanks to which I ordered a book - "It's easy to play on the stock exchange." The ideas presented on its pages helped me “merge” several demo accounts, but I became interested in the topic, although a lot of “absorbed subsequent literature did not give workable strategies. To automate the search process, I started writing and testing algorithms in OmegaProSuite, MetaStock, later switched to Expert Advisors and MetaTrader scripts in conjunction with MatLab.
Is portfolio management fully automated?
Yes, this was decided by me at the initial stage - automation solves the problems of presence in the market, where a trader in the trading process is only an executor of previously thought-out rules or signals of indicators. There is no need to spend on this time, which is better used to improve and search for new ideas.
I am constantly busy programming and testing reserve trading strategies that will replace failed systems.
Is trading your main occupation?
Yes, working in the Forex market takes all my time. My PAMM accounts in Alpari are long-lived only thanks to hard work, constant search, training and optimization of the strategy.
Over the years, I realized that there are no ideal trading systems. The trading result that is visible on my account is numerous tests and adjustment to the rhythm of the market.
Also, I myself am an active investor in other people's PAMM accounts.
The best and worst period of your ten-year management?
In 2012, in one night, the robot caught a major move and brought 86% to the piggy bank in one session, which brought my account to the third position in the rating. It was a triumph, until that moment the PAMM portfolio did not have enough funds to simply appear in the list of Alpari managers.
But 2013 became a “black stripe", the constant drawdown deprived me of many investors, but I found the strength to adjust money management, develop systems for selecting strategies, get out of losses and return to profit.
What is the idea behind your strategy?
The strategy is based on the simple idea of trading trend fishing after a period of calm - flat. A range is determined, and pending orders on the edges are waiting for which side the market will choose. Further, the position is accompanied by a trailing stop, while I do not use locks, martingales.
Trading tactics also do not allow losses to stay out and averaging, as well as trend top-ups. Stop-loss is a prerequisite, and one of the goals of optimization is to reduce risks.
Trading Instruments - EURUSD, USDCHF, XAUUSD; working timeframe - M30 and H1.
What do you recommend to those beginners who want to choose the path of a PAMM manager?
Based on my own experience, I advise you to put up with mistakes, not to look for complex systems and grails, to continuously learn and constantly be in search of knowledge. The problem of trading training is a lot of conflicting and sometimes false information on websites and book pages.
I learned a lot of useful things from the works of Jack Schwager, Bulletins of Chuck Lebo, articles by Bruce Babcock. But the most effective teaching methodology was attending courses that save time and provide directional information. Among them, I can highlight the author's lectures by Max Zhivas and Vladimir Bazhenov. The latter turned out to be the most useful due to the availability of online transactions and a detailed analysis of examples.
Moment to enter - “Christmas Rally”
The term "Christmas rally" is usually applied to the stock markets, indicating the period of time before the New Year, when investors buy shares in the hope of a positive change.
The Forex market does not stand aside, during this period, currency pairs form stable strong trends with abnormal volatility. This allows PAMM managers to record more than usual profit on strategies trading on a high timeframe using a trailing stop following the trend.
Therefore, the ideal entry would be to search for and invest in precisely such specific strategies. When choosing a PAMM account for the Christmas rally, pay attention to the frequency of transactions and the behavior of the yield curve in November-January for previous years. This will allow you to understand the manager’s ability to "catch a Christmas rally", to work in the Forex market at a time of increased volatility.
The rating of broker's PAMM accounts from this review is a subjective assessment that cannot guarantee future profit, since each portfolio is subject to the risk of a “human factor”. The strategy is presented in the form of a yield curve and data from a mathematical analysis of past results that do not give an assessment of stability after changing the regime of volatility, reducing or increasing liquidity, political, global risks.
If you decide to invest in PAMM accounts, use a diversified approach, alternating high returns with conservative trading, scalping with a long-term strategy, new managers with time-tested portfolios.