How do the best traders trade?
Good afternoon friends!
Many traders, especially beginners, invest part of their funds in PAMM accounts of other traders. And I believe that this is the right approach. But in addition to the direct financial benefits from successful traders, you can draw on the approach they use, on the basis of which you can begin to develop your trading systems. Today we will find out what strategies TOP managers use and the sweetest thing is how much they earn. Crispy, green pieces of paper)
But the article is not about this, but, in fact, about the most popular accounts themselves and methods of trading on them.
How much do successful forex managers earn?
Most traders, and possibly investors, come to the financial markets with ads like "Get $ 3,000 a day without special knowledge and effort" or "I have already made my million, join in!". Naturally - this is all complete nonsense.
Surely, all newcomers believe that successful managers get a hundred thousand dollars a month every month, after a couple of years they can buy an island somewhere in the Atlantic Ocean and live happily ever after, occasionally looking at their laptops and sipping a cocktail while lying in a hammock under palm tree.
Unfortunately, it soon turns out that the fate of a novice trader is not enviable, for successful trading you need iron nerves, a lot of free time and patience, and the vast majority of beginners quickly part with the illusions of easy and big money.
However, a small number of traders still manage to go through a difficult stage of formation and become a professional. So how much do they manage to earn?
It is unlikely that somewhere in the public domain you can find statistics on private traders who do not attract investor funds. One can only guess about their results. However, you can find information about the best PAMM managers and evaluate their income.
I’ll immediately make a significant reservation: the calculation results are approximate, since it is often difficult or impossible to calculate the exact amount of the manager’s profit. I tried to take into account both management profit and my own funds whenever possible, while summarizing the funds on all accounts of the manager, if there are several. In case of doubt, I rounded the estimate down, that is, the real profit of the managers with a high probability is slightly higher than the one indicated in the article. Also, the possible remuneration for trading turnover, the presence of the manager of large investors outside the PAMM sites, payments from the affiliate program, and other similar additional sources of income were not taken into account.
In my opinion, in general, the calculation error is unlikely to exceed 20-30% (except for the presence of large third-party investors), which is quite enough to answer the question raised above. The principle of calculation is simple and any reader can repeat it at home. The total profit received on the account for the last year was taken, according to the available data on the amount of investments, the size of the management fee was assessed (with a step offer), while the funds of the manager, if they reach large values relative to the funds of investors, were taken into account separately.
On average, managers from the top 5 receive from 150 to 300 thousand dollars a year. The first twenty-five in the ratings (minus the top 5) - from 20 to 100 thousand dollars a year. In the case of the top - this is about 12 to 25 thousand per month. The remaining 25 receive from 1.6 to 8.3 thousand dollars a month.
And here are a few conclusions and observations regarding the income of successful traders. Firstly, I consider a positive signal that the trader reinvested most of the profit back to his account. This indicates his confidence in his abilities and his trade.
SecondlyIt’s quite interesting to look at investor deposit and withdrawal charts. As a rule, in the first twenty or thirty ratings, accounts are kept on which decently the funds are withdrawn more than were invested. This indicates the feasibility of investing in PAMM accounts. It’s just important to diversify your investment portfolio and not invest in adventurous projects, guided by an old saying "the quieter you go, the further you'll get".
AND third, with the proper responsible approach to trading on your PAMM account, it is quite possible to get a very worthy reward. It is unlikely that it is you in the near future who will take a place in the honorable top 5 rating and will be able to completely abandon earnings on the side. But, nevertheless, it is quite possible to get a quite substantial increase in basic earnings over time.
Managed Lucky Pound PAMM Account
The account exists since April 2015, this is a pretty decent time. During the existence of the account, there were no major failures on the yield chart, and in general, the balance curve is growing quite steadily. Manager - programmer, forex trading since 2008. Robots work on accounts, breakdown strategies are applied.
Trading on the account is conducted by three instruments: AUDUSD, EURUSD and GBPUSD, and the last two pairs are used more actively.
The average profit is approximately equal to the average loss and amounts to about 32 points, which is quite a lot. The number of profitable transactions is about 60%, and the profit factor is 1.63.
More active trading is carried out in the middle of the week:
On Monday, there are very few deals, which is understandable - trading is carried out for breakdown, and Monday, as a rule, is a fairly calm day. If you look at the distribution of transactions by hours within a day:
it is clearly seen that there are not many nightly deals. Most of the deals occur during the day, forming three peaks at the opening of Europe, America and at the close of the American session. And this is also quite logical, because it was at this time that the main volatile movements took place.
In 2017, 30% were earned with a drawdown of 11%.
In 2016 - 81%, in 2015 - 145% with a drawdown of 26%, in 2014 - 267% with a drawdown of 37%. It can be seen that at the initial stage, the risks were slightly higher than they are now used. For 2018, 37% have been earned so far with a drawdown of only 4%. Last year was really very difficult for many trading systems, including for breakdown ones. Nevertheless, it can be expected from the account of about 60% per annum with a minimum border of 30%.
It is possible, some are perplexed, how so? From 30 to 60% per annum? After all, his growth leaves 2830%, and the account exists for only 4 years? The answer to this magic is a compound percentage. Therefore, be careful and always try to evaluate yields on an annualized basis before investing so that your illusions do not crumble later.
PAMM Accounts Managed by Solandr
The essence of his trading idea is very simple: trade breakdowns of well-marked support / resistance levels and profit-taking on impulses at the time of breakdowns. Yes, breakdowns again, that's right. And by the way, advisers again.
The account exists since 2013 and earned about 200% of the profit.
The average profit is approximately equal to the average loss and is about 26 points. The number of profitable transactions is about 67%, and the profit factor is 1.52. Trading is conducted only on the EURUSD pair.
The main activity is in the daytime, due to the nature of trade. And again on Monday the smallest number of transactions, although this is not so pronounced.
The average transaction length is a little longer - about 8 hours.
PAMM Accounts managed by Asmodeux
(Alfa Forex company stopped working with the Russians, so it’s already impossible to give a link to the account)
Another trading account with an impressive result - 14,000%. I think you guessed it. Yes, this is a breakdown algorithmic system. And for many, it will become a template destroyer.
The system has been operating since 2012 and during this time 14,000 transactions were completed. Trading takes place on the EURUSD pair with the number of profitable transactions of only 42% and a profit factor of 1.17. The average profit here is almost twice the average loss, hence the profitability of the system despite the low percentage of profitable transactions.
In 2012, 53% were earned with a drawdown of 20%, in 2013 - 39% and 82% of the drawdown. The account was almost merged, but then restored and even went into positive territory for the year. All this can be attributed to the inexperience of the manager in those years. 2014 and 70% per annum with a drawdown are still the same 80% - the account again fell to the bottom, and twice - to -50% and -70%, after which it was restored both times. In 2016, the account received a record 450% and again with a drawdown of 58%. The fact is that the account was dispersed to 1000%, but then half merged. In 2017, profit was 252% with a drawdown of 80%. 2017, quite a difficult year for many, was closed with a drawdown of 60% and a profit of 17%. As you know, the risks are very high. Nevertheless, the account is stable from year to year closes in plus.
All trade is conducted in the European and American sessions, the rest of the time transactions are few.
On Monday, there are significantly fewer transactions again than on other days.
PAMM Account Manager MovingUP
This time - the indicator manual system, although it also has a breakdown character. Only two currency pairs are used - EURUSD and USDJPY.
About 70% of profitable transactions, but the average profit is half the average loss. Hence the low profit factor - 1.15. It is felt that the manager is sitting out a bit. However, the score is in the top 10.
Transactions take place almost around the clock, which suggests that the author is either cunning, claiming manual trading, or suffers from pronounced insomnia. Most likely, the adviser, nevertheless, at least, bargains during the absence of the manager.
However, if you look at the distribution of transactions by day of the week, the author really does not like Friday, as stated. The account is almost two years old, in the first year 235% was earned with a drawdown of 36%, in the second - 97% with a drawdown of 18%. Risks appear to have been reduced.
PAMM Accounts Managed by MIHALI4
This account, also in the top, trades a rather impressive number of instruments. The advisors on indicator strategies work on the account. The average loss is 22 points, the average profit is only 15 with 63% of profitable transactions and the profit factor of only 1.09. A deal lives on average 7 hours, which indicates trading on a period of supposedly not lower than an hour.
The account has a rather interesting distribution of transactions by time of day - two obvious peaks at the opening of Europe and in the late evening, after the closure of America. I can assume that advisers use different types of strategies.
As for the distribution by day of the week, it can be seen that the used portfolio of advisers does not matter what day to trade:
In general, trading is quite stable, although not so much time has passed for analysis.
In the process of analyzing stable earning top accounts, I made several conclusions for myself.
- Being in the top, the manager can make quite good money. Of course, these are not golden mountains, but a quite decent level of earnings;
- I did not find a single monkey or net, which suggests that the average PAMM investor is starting to get a little smarter. In general, I think this is a great trend. However, stable long-term accounts still have few investors;
- Almost half of the top accounts use night scalpers. Unfortunately, I could not find monitoring on myfxbook very many accounts - managers are very reluctant to publish this kind of information. I assume that in most cases these are public advisers optimized independently. In rare cases, upgraded. As a rule, the period of existence of such accounts rarely exceeds 1.5-2 years, so they have yet to prove their stability;
- The second "almost half" - breakdown trading systems, presumably working on periods from H1 (in some cases on M15), also in most cases automated. Such accounts, as a rule, already have a rather deep history - a minimum of 3 years and above. This indicates the rationality of this approach and the prospects for the development of breakdown systems;
- All systems, except nightlights, trade very limitedly at night. It is understandable - low volatility. In addition - breakout trading systems do not like Mondays;
- The ratio of profit to loss is not so important. The main thing is to maintain a balance between this ratio and the number of profitable trades. But at the same time, no trading system with an average transaction of less than 10 points was met by me in the top;
- Almost all accounts in the top, with rare exceptions, are automated (hello to manual traders!);
- By and large, the low profit factor is also not a 100 percent indicator that the system does not make any money.
I hope my conclusions will help you, and you will also make your conclusions as to which direction you should look in order to start earning money in the forex market with minimal effort.