If you would like to see a visual representation of a PAMM manager's performance, you can check out the PAMM Account monitoring. The data shown in this section only take into account the manager's trading. Deposits and withdrawals are not reflected in the charts.
Shares help to show an investor’s overall share in the PAMM Account, or in other words, the equity of one investor's account in relation to the equity of the PAMM account as a whole.
The share price is a reflection of the change in equity on the account which factors in only the results of the manager's trading. The share price is the same for all investors in a PAMM Account (including the manager). The share price for a PAMM Account can be calculated by dividing the PAMM Account's equity by the share count (for an investment account, divide account equity by the share count in the Monitoring). The PAMM Account share price is recalculated during every PAMM Account rollover. The initial share price when a PAMM Account is activated is 100 units of the currency in which the account is denominated.
An investor's share count is used when transferring the profits from the manager’s trading to the investment account of an investor. To calculate the share count for an investment account, divide the account equity by the share price. The share count of an investment account is calculated during an active rollover after deposit and withdrawal requests have been processed.
In the PAMM Account monitoring, the share price and the share count are calculated to the 15th place after the decimal point. In myAlpari, the share price is shown to two decimal places and the share count to six to make things easier for our clients.
A client opens an investment account and makes a deposit of 1,000 USD. At the active rollover, the share price on the PAMM Account is 200.00 USD. This means the investor has 5.00 shares (1,000 / 200.00) in the PAMM Account.
At the next rollover, the share price has risen to 250.00. The equity on the account increases to 1,250 USD (250.00 × 5.00 = 1,250).
Then the investor deposits another 500 USD. At the active rollover, the share price is 250.00. As soon as the deposit has been processed, 2.00 shares (500 / 250.00) will be credited to the investor's account. The share count of the investment account is now 7.00 and the equity of the PAMM Account will be calculated based on 7.00 shares at the next rollover.
Rate of return represents the percentage of profit or loss over a certain time period on an investment account. It is calculated using the formula:
(P2 - P1) / P1 × 100%
A client opens an investment account on July 1st. The share price starts at 250. By August 1st, the share price is 350. The rate of return on the investor’s account is: (350 - 250) / 250 × 100 = 40%.
You can also use the following formula to calculate the rate of return over a given time period using the "Rate of Return" graph in the PAMM Account monitoring:
( (D2 + 100) - (D1 + 100) ) / (D1 + 100) × 100%
At the end of the trading interval, the manager will receive a percentage of each investor's share of the profits (assuming the manager's trading was profitable). The amount the manager will earn in compensation from investors is based on the terms established in the manager's proposal. Manager compensation is automatically credited to the manager's investment account.
Risk Level: measures the aggressiveness of the PAMM Account by calculating the volatility of the average daily Return. Risk is rated within the following volatility ranges:
You can access this information by selecting a PAMM Account from the Ratings and scrolling down to "Account Performance".