FAQ
Total profitability is one of the major determinants of PAMM-account’s general appeal. It gives an idea of how much an investor has earned or lost in terms of percentage points. This value helps us judge whether the investment would be profitable or not. It allows us to choose the PAMM-account that best fits our requirements.
Total profitability is calculated as follows:
Total profitability =(À1/À * Â1/Â * Ñ1/Ñ - 1)*100, where
À...À1, B...B1,Ñ…Ñ1 – time elapsed between deposit/withdrawals
À – initial balance
À1 - equity1 the day before funds deposited/withdrawn
B – equity the day funds deposited
B1 – equity the day before funds deposited/withdrawn
Ñ – equity after deposit/withdrawal of funds
Ñ1 – current equity (total profitability parameter that changes in real-real time)
1Equity – amount of funds available including currently open positions.
EXAMPLE:
The above formula eliminates the impact of deposit/withdrawal on PAMM account profitability.
Let us analyze total profitability values of two different PAMM accounts:
Initial funds of PAMM account1 manager = $100
Initial funds of PAMM account2 manager = $200
Managers’ ending funds after the first investment period:
PAMM account1 =$200
PAMM account2 =$400
Total profitability of PAMM account1 can be calculated as follows: (200/100-1)*100=100%
Total profitability of PAMM account1 can be calculated as follows: (400/200-1)*100=100%
| Time | Initial Equity | Ending Equity | Total profit | |
| Manager 1 | 1 | 100$ | 200$ | +100% |
| Manager 2 | 1 | 200$ | 400$ | +100% |
At the end of the first investment period PAMM account1 manager made profit withdrawal in amount of $100, PAMM account1 reinvested the profit in amount of $200, therefore their funds at the beginning of the second investment period are as follows:
PAMM account1 = $100
PAMM account2 = $400
Managers’ funds after the second investment period are as follows:
PAMM account1 = $200
PAMM account1 = $800
| Time | Initial Equity | Ending Equity | Total profit | |
| Manager 1 | 2 | 100$ | 200$ | +100% |
| Manager 2 | 2 | 400$ | 800$ | +100% |
Total profitability of the PAMM account1 over the whole period:
((200/100)*(200/100)-1)*100=300%
Total profitability of the PAMM account2 over the whole period:
((400/200)*(800/400)-1)*100=300%
Profitability per day value determines the profitability of a PAMM account per day.
This value is calculated as follows:
(Å/Å1-1)*100 , where:
Å – current equity
Å1 – equity at 00:00 current server time
Profit Factor (profitability) is the correlation between the sum of profitable deals and the sum of losses. Simply speaking, it gives us an insight into how big is difference between total profits and total losses, therefore the bigger this value the better it is for you.
Profit Factor is calculated as follows:
Net Profit = GrossProfit - GrossLoss , where:
GrossProfit – total profit;
GrossLoss – total loss
Maximum profit in pips is the maximum profit (expressed in pips) made per a deal over the whole trading period.
Maximum loss in pips is the maximum loss (expressed in pips) made per deal over the whole trading period.
Average profit per deal expressed in points is the arithmetic mean value of all profitable deals on PAMM account.
This value is calculated as follows:
(Σ P)/(Σ Z) , where:
Σ P is the sum of all profitable deals expressed in pips
Σ Z is the sum of all profitable deals made on PAMM account expressed in pips.
Average loss per deal expressed in pips is the mean arithmetic value of all losing deals on PAMM account.
This value is calculated as follows
(Σ P1)/(Σ Z1) , where:
Σ P1 is the sum of losses on losing deals expressed in pips
Σ Z1 is the number of losing deals on PAMM account
