This issue is also important because an understanding of these definitions, enables a better understanding of the level of risk in the preparation of the investment portfolio and how much you are willing to take risks. Actually the very notion of aggression, we can determine the riskiness of PAMM accounts and to determine the aggressiveness into account risk factors. Understanding the aggressive strategy of control is subjective and different sources you can find different information.
But there is a common definition of an aggressively managed PAMM accounts that can be used initially. You must pay attention to the options you know are:
1. Important indicator - download deposit, the higher the load, the greater the risk. That download deposit determines the rate of return that is downloading a large amount of the deposit, the trader receives and more profit. At the same time, the trader can get a negative transaction, so loss will be great.
2. Maximum drawdown level - is directly related to aggressive trader. The higher the level of drawdown, the greater the risk that it will be repeated in the future.
3. Levels of risk in trading activities Trader: risks for the month, week, and the risks specific to the transaction.
These types of risk managers justify the Stop Loss, which are used in the opening trades. Unfortunately, such an option in the ranking PAMM accounts is displayed. Learn about it only in a forum where the manager trader describes his trading strategy and the corresponding risks. Or you can ask the manager directly.
Should be considered an aggressively managed PAMM account several parameters only because one only loading deposit can not give the full vision of the ongoing situation. Therefore, in determining the aggressiveness of PAMM accounts, we recommend that multiple parameters using such indicators:
1. Ultraconservative - maximum loading deposit 10-15% with 5-10% drawdown. Average yield of 60-90% per year.
2. Conservative - load level of the deposit 15% drawdown is not more than 30%. The average income on account of 60-120% per year.
3. Moderate - loading deposit of at least 15-40% with 30-50% drawdown. Average yield 60-200% per year.
4. Aggressive - load level of the deposit may be 40-120%. Maximum drawdown in this case is more than 50%. The average income on transactions goes from 200% to 2000% in one month. But do not forget that these figures can go in the opposite direction.
Since many trading strategies, and each of them shows a different level of income at the same level of drawdown, and vice versa, fit PAMM accounts under a certain standard is almost impossible. This representation regarding aggressiveness PAMM accounts, is the average and generally accepted. But everywhere there are exceptions, and you can fall PAMM account that does not fit is not a single category. In this case, we recommend that you observe behavior of the account and then only it belongs to that category, where most trading parameters correspond to it.