The online forex broker RoboForex announced the addition of Risk Allocation Management Model (RAMM) accounts to the offering of its RoboTrade unit.
The RAMM model is a relatively recently developed investment system, which provides better protection from losses, unlike the more frequently used percentage allocation money management (PAMM) system for trading with pooled money where the risk of losing investments is shared equally among the investors and the trader.
The RAMM system allows the investor to set a level of acceptable weekly losses he or she is comfortable with and retain full control over their investment. At the same time the investors’ restrictions do not meddle with the trader’s strategy and performance.
The RoboForex RAMM account lets the immediate stopping of operations and the withdrawal of the investments from trading. The minimum amount of investment is $10 and the minimum period of investment is one week.
The investor in a RAMM account can trade both in manual and automatic mode, create strategies of his own (1 strategy equals one PAMM account), and receive up to 50% from the profit of his or her investors. The inbuilt risk management system automatically controls the trading risk.
According to RoboForex their RAMM accounts are combining the best features of the trading signals and the PAMM accounts. Unlike trading signals, in both RAMM and PAMM accounts execution prices are the same for the trader and all their investors. Both the signal services and the RAMM account lets the investor stop following a strategy instantly. Both the PAMM and RAMM accounts provide a fair commission structure and investors pay only when they get profit. The signal services and the RAMM account allow individual settings of investment parameters and are legal in regulated jurisdictions. Risk control in the trading and limits on weekly losses, however, are embedded only in the RAMM accounts.
RoboForex is an automated forex broker regulated in Cyprus and Belize. It offers trade in currencies and CFDs on stocks, indices and spot oil. The leverage is up to 1:1000 and no minimum deposit is required. The trading platforms that can be used for trading via RoboForex are MetaTrader4 (MT4), MetaTrader5 (MT5) and cTrader.
The group consists of the holding company RoboForex Financial Group and its units RoboForex, regulated by Cyprus’ Securities and Exchange Commission (CySEC), RoboTrade Ltd. regulated by the International Financial Services Commission (IFSC) of Belize and RoboForex LP, based in New Zealand.